Executive Summary:In my business report I leave be stating and discussing the five major pecuniary macrocosms in Australia. I allow be giving detail on iodin in particular and the different types of gives available to consumers. I get come forth alike inform consumers on the rights and responsibilities of buy upers who crawfish out out a bring. I provide also comp atomic number 18 and evaluate the quaternary different types of reference point cards available, their intrest say, the annual payments and the intrest free period.
1.Financial Institutions:In Australia in that respect be at least four primary(prenominal) pecuniary institutions. These are:?Banks: A bank is a pecuniary institution that acts as a gestatement agent for customers and to sop up and lend money. They provide a wide range of financial services including funds management, superannuation and insurance services. Some examples of banks take ANZ, Westpac, NAB and land bank.
?Building societies: is a financial institution that is owned by its members that murderers banking and other financial services specially mortgage lending. Some examples of building societies are IMB, Greater building society, Newcastle Permanent building society, ABS building society and Hume building society.
? assurance Unions: is a non-profit financial institution that is privately owned and in which members vote the bored of directors. Some examples of cite unions are teachers reliance union, Qantas credit union and Sydney credit union.
?Finance companies: is a financial institution which provides business brings for business development and any face-to-face imparts for the perchase of cars, etc. An examples of a finance companie is the AFSD.
?Insurance companies: is a social club that offers protection and coverage from lost, theft or fire. There are two types of insurance companies. These are life insurance and normal insurance. Some examples of insurance companies are AAMI, Allianz, AMP, NRMA and CGU.
2.Types of brings:The Commonwealth Bank provides a wide range of loanwords and financial services. Some of the different types of loans complicate:?Personal loans (Fixed regularize): A private loan is a loan offered by the Commonwealth Bank to clients who wish to purchase ain items alike(p) computers, televisions and mobile phones.
?Tertiary Student loan: A tertiary student loan lets full-time tertiary students at University, TAFE, Agricultural College or registered training organisations to borrow money to pay for gives, books, computers, cars, etc.
? commercial enterprise loan (fixed loan): A business loan is a loan that is offered to fund the business? growth, expansion or finance. The Commonwealth Bank provides the BetterBuisness for these purposes.
?Home loan (Variable rate): Commonwealth bank provides a wide range of home loan services like low interest rate home loans and packages. The loan is offered to flock who want to buy, build, invest and renovate a home.
Rates and hires:When applying for a loan there are also some place and some tippytoes that you have to pay on top of the loan repayments. These are different for each loan.
Personal loan (fixed rate):? constitution tap $135?Guarantee fee $120? superfluous assay fee $5.40?Cancelled cheque fee $10?Loan service fee $10 monthly? slowly payment fee $45?Overdrawing approval fee $30?Repayment redraw fee $10?Switching fee $70?Administrative fee $50?Deferred establishment fee? new(prenominal) electronic banking fees?Government chargesTertiary Student loan:?Establishment fee -There is no establishment fee for a Campus Loan.
?Early repayment fee ? there is no early repayment fee and if they pay off the loan early there is little interest.
Buisness loan:?Establishment fee $180?Cancelled cheque fee $10?Late payment fee $50?Government charges?Switching fee $70?Administrative fee $50?Deferred establishment fee?Loan service fee $12 monthlyHome loan:12 Month Discounted Variable RateThis enables customers to define a head start on paying off the home loan. The discounted rate is only available for new loans, and at the end of the discounted period the interest rate converts our current bill variable rate. Alternatively, you go off choose another home loan option (a switching fee applies).
?Establishment fee $250 up front or $450 for the variable loan?Service fee $8Loan Term and Amount:Personal loan:?When you borrow a personal loan fom the Commonwealth bank you push aside borrow between $5,000 and $50,000. The loan barrier is from 1-7 years.
Student loan:?For a student loan you can borrow up to $5,000. This loan has no repayments till you graduate.
Buisness loan:?For a business loan the loan center needs to be over $50,000. The loan term is from 1-10 years.
Home loan:?The loan term is up to 30 years and the Commonwealth bank has a style test that determines what you can afford to repay which is how they determine the amount of the loan.
Interest Rates and Comparison Rates:Personal loan:?The intrest rates are from 14.95% pa and the comparison rate is 17.95% paStudent loan:?The Interest rates are from 14.75% p.a and the comparison rate is 17.75% p.a.
Business loan:?The intrest rates are from 10.55% pa and the comparison rate is 12.75% paHome loan:?The intrest rates are from 9.35% pa and the comparison rate is 9.56% pa.
3.Basic rights and responsibilities for consumers:As a loan borrower there are some(prenominal) rights and responsibilities that have to be known. Some of these include:?Understanding that you will be getting yourself into debt. You will need to pay the forefront plus the intrest charges. Find out what type of security, if any, is required.
?Find out how a great deal the loan is in innate. Finding both the top dog and the intrest charges and any supererogatory costs, such as fees, stamp occupation and government charges.
?Work out the repayment amounts like how much per repayment, when each payment is due, and finding out how many repayments there are altogether.
?Getting information on how the charges and any additional costs, are collected.
?Find out weather you can repay the loan in a shorter period of time and if so looking out for the penalty rates.
?Understanding the consequenses that you will be faced with if you can not make the repayments.
?An explanation of available options for consolidating your loans and a statement that you can prepay your loans without penalty at any time.
?Information about the maximum repayment periods and the token(prenominal) repayment amount.
?Information about the yearly and total amounts you can borrow.
Responsibilities:Think about what your repayment responsibility means forwards you take out a loan. If you dont repay your loan on time you might go into default, which has serious consequences and will rival your credit rating.
You mustiness make payments on your loan correct if you dont receive a bill or repayment notice. boot statements are sent to you as a convenience, but youre have to make payments even if you dont receive any reminders. You must also make monthly payments to pay off the loan. Partial payments are not allowed.
If you apply for a deferment or forbearance, you must continue to make payments until youre notified the bay has been granted. If you dont, you might end up in default. You should keep a copy of any request form you submit, and you should document all contacts with the organization that holds your loan.
You must suggest your loan servicer when: you graduate; withdraw from civilise; drop to a lower place half time status; change your name, address, or genial Security Number; or transfer to another school if you have a student loan.
Do not sucker any loan documentation without carefully reading it and apprehension its contents. If you are unsure of anything in the contract, ask the lender for illumination or preferably get independent advice from either a solicitor or financial advisor before signing.
When you take out a loan must be turn over a document stating all the condition that apply to the loan. You can also receive a credit contract. Each credit contract and pre-contractual statement must include:?the amount of credit to be provided?the annual percentage rate?how the interest will be calculated and when it will be charged?the total amount of interest if the contract is paid out in spite of appearance seven years?the credit fees and charges and how changes will be sure?any default rate of interest and how it will be calculated?the frequency of account statements?relevant commission charges?if mortgage guarantee insurance applies?details of credit-related insurance?loan term?repayment schedule4.Comparison of credit cards in AustraliaBelow is a hedge of 4 different types of credit cards available to consumers, the intrest rates of these cards, the intrest free perid, annual fees, etc. mastercard visa card American express dinners card*(table included in attachment folder)BIBLIOGRAPHY:hypertext transfer protocol://en.wikipedia.org/wiki/Financial_institution. retrieved: 5/3/08http://en.wikipedia.org/wiki/Bank. Retrieved: 7/3/08http://www.commbank.com.au/ (i then clicked on personal and business loans for more information) Retrieved: 7/8/08http://www.anz.com/personal/home%2Dloans/rates%2Dfees/. Retrieved: 8/8/08http://en.wikipedia.org/wiki/Student_loan. Retrieved: 8/8/08
If you want to get a full essay, order it on our website: OrderessayIf you want to get a full essay, wisit our page: write my essay .
No comments:
Post a Comment