GENERAL CONDITIONS AND RATES
Index of contents
- 1 GENERAL CONDITIONS AND RATES
- 1.1 INDENTITY
- 1.2 CHARACTERISTICS OF THE LOAN
- 1.3 LINKS AND PREPARATORY EXPENSES
- 1.4 ANNUAL EQUIVALENT RATE AND TOTAL COST OF THE LOAN
- 1.5 EARLY AMORTIZATION
- 1.6 FEES FOR FINANCIAL INTERMEDIATION
- 1.7 OTHER EXPENSES
- 1.8 BINDING OFFER - FEIN
- 1.9 GENERAL CONDITIONS OF THE CONTRACT
- 1.10 LANGUAGES IN WHICH THE CONTRACT MAY BE FORMALIZED
- 1.11 WITHDRAWAL OF THE INTERMEDIATION CONTRACT
- 1.12 EXECUTION FOR NON-PAYMENT - FORMS OF EXECUTION
- 1.13 CALCULATION OF THE ANNUAL EQUIVALENT RATE (APR)
- 1.14 CONFLICT RESOLUTION
Identity: Silex Inversión y Gestión SL
Commercial Name: Harlan's Chocolate Loans
Telephone number: 931 702 798
Registry data. Volume 43450, Folio 66, Section 8, HB 429710, I / A 1 (11/16/12)
Address: Silex Gestión offices in Lagos, Calle 19 Zmuba ave Apartment 6.
Website: www.silexgestion.com / harlanschocolates.com
Company registered with the Nigerian Consumer Agency with number 420/2013, second section, which guarantees compliance with Law 2/2009, of May 31, which regulates the contracting with consumers of loans or mortgage credits and intermediation services. The company has contracted the Civil Liability insurance with the company Excel Underwriting Agency, policy number BACA201908317.
CHARACTERISTICS OF THE LOAN
The maximum amount of the loan will be 60% of the appraised value of the property, although the maximum amount granted will depend on the feasibility study taking into account the feasibility study of the loan. The properties used as collateral in loan must be located within the Spanish State. The appraisal will be carried out by an appraisal company, a credit institution appraisal service regulated by Law 2/1981, of March 25, on mortgage market regulation, and / or professional Approved in accordance with Royal Decree 775/1997, of May 30 and the tenth additional provision of this Law, independent of the lender or the real estate credit intermediary, using reliable and internationally recognized valuation standards, in accordance with the provisions of the ECO Order / 805/2003, of March 27, on real estate valuation standards and certain rights for certain financial purposes.
Example: in the case of a house valued at 200,000, the maximum amount to finance would be € 120,000.
- Interest rate: it will be fixed throughout the life of the loan and will vary depending on the amount and duration of the loan. The maximum amount of interest will be 12.5% per annum.
- APR: it will vary depending on the amount and duration of the loan. The maximum APR will be 20% per year.
- Duration of the loan: the repayment term, depending on what is finally agreed, may range from a minimum of 12 months to a maximum of 300 months.
- Types of amortization: depending on what is finally agreed, the loan can be repaid through a French rate (amortizing capital and interest through constant installments), through an American rate (amortizing interest on a constant basis and a final payment of capital) or through a single comprehensive annual installment of capital and interest.
- The purposes for which the credit can be used exclude the acquisition of a habitual residence.
LINKS AND PREPARATORY EXPENSES
For this loan, the client is not required to other products or services that have to be contracted together with the loan, so there is no link between the loan and other possible products or services that may be offered by the entity.
The preparatory expenses of the operation will be:
- Verification of the registration situation of the properties (updated simple registration note), which has a cost of approximately € 10 + VAT.
- The cost of the appraisal will be borne by the client, although the situation may arise that the financier advances this amount depending on the amount requested and the duration of the same. However, the entity may accept any appraisal provided by the client as long as it meets the requirements required by law.
In any case, none of the above expenses will be charged to the client, and their payment will not be required, until the contract is signed. In such a way that, if it desisted from it, it would not have to face the costs mentioned.
EQUIVALENT ANNUAL RATE AND TOTAL LOAN COST
The APR is the total cost of the loan expressed as an annual percentage. The APR is to help you compare the different offers.
In an example for a loan of € 50,000 with a repayment term of 20 years, for a home located in Madrid of 80 square meters they would be:
The APR applicable to your loan is 13.84% and comprises ( The formula for calculating the APR appears in Annex II of Law 5/2019, March 15, regulating real estate loan contracts.) :
- The annual interest rate 11.50%
- Monthly fee: € 533.21
- Opening commission 6%: € 3,000
- Appraisal: € 375.10
- The total cost of the loan in absolute terms: € 83,352.50, this amount includes the remuneration interest and all the expenses outlined
In the section "Calculation of the equivalent annual rate (APR)" of this document we attach the formula for calculating the Annual Equivalent Rate (APR)
The loan can be repaid in advance, in whole or in part, always with a written notice one month in advance of the repayment date indicating the principal amount that you wish to repay. In addition, any overdue debts that exist, as well as the interests that correspond to the capital amortized in advance until the payment date, must also be paid. Interest will be calculated by days.
When repaying early, the borrower can choose between the following options:
- Reduce the amount of the principal pending payment of the loan, maintaining the term of duration and reducing the amount of the installment or
- Reduce the remaining duration. This implies that the borrower will pay the same installment amount but for less time.
Early repayment entails a special economic burden for the debtor in the form of a commission, which must be paid to the lender at the time of repayment, as indicated below: If the repayment or early repayment of capital takes place in the first ten years counted from the date of formalization of the present, the debtor party will pay a compensation or commission in favor of the lender of 2% of the capital repaid in advance. However, the commission may not exceed the amount of financial loss that the lender may suffer in accordance with the calculation method provided below. If the repayment or early repayment takes place from the end of the period indicated above until the end of the life of the loan, the debtor party will pay a compensation or commission in favor of the lender, of 1.5% of the capital repaid in advance. As in the previous case, in any case, the commission may not exceed the amount of financial loss that the lender could suffer in accordance with the calculation method provided below.
The financial loss will be calculated proportionally to the repaid capital, due to the negative difference between the outstanding capital at the time of the amortization or early repayment and the present market value of the loan, as provided for in current regulations. The present market value of the loan will be calculated as the sum of the present value of the installments pending payment until the next revision of the interest rate and the present value of the outstanding principal that would remain at the time of the revision if the early repayment does not occur. . The updating interest rate will be the market rate applicable to the remaining term until the next review. Said updating interest rate will be the Interest Rate Swap (IRS) at terms 2, 3, 4, 5, 7, 10, 15, 20 and 30 years that will be published by the Bank of Spain and to which a differential will be added. This differential is set as the difference existing on the formalization date, between the interest rate of the operation and the IRS at the term that is closest, at that time, to the expiration date. The IRS of those indicated in the previous paragraph that most closely approximates the term of the loan remaining from the early cancellation to the due date will be applied.
RATES FOR FINANCIAL INTERMEDIATION
- Processing of private equity mortgages: it will vary depending on the capital granted, repayment period, guarantees and purpose of the loan. with a minimum of 5% of the requested capital and a maximum of 20%.
- Opening commission: it will vary depending on the capital granted, repayment period, guarantees and purpose of the loan. But it will be a maximum of 10% with a minimum of € 1,000.
BINDING OFFER - FEIN
SILEX INVERSION SL undertakes to select, among the products offered in the market by real estate lenders, with special significance from private capital (natural or legal persons that without being credit institutions make loans in a professional manner), those that best suit to the characteristics of the loan interested by the CLIENT, in accordance with the information provided by it. It may take into consideration, among those, its own products.
It will thus present you with at least three binding offers (or FEIN) issued by a real estate lender so that you can choose the one that interests you the most.
In the event that, after examining the information requested from the CLIENT, it is found that it is impossible to submit these three binding offers due to market conditions, or that the study of the CLIENT's economic profile does not meet the requirements requested by the lenders, and only one or two binding offers could be presented, the borrower may withdraw from the contract with no more economic cost than the expenses incurred in accordance with the Eighth Pact that follows, or accept the one (s) that are proposed.
GENERAL CONDITIONS OF CONTRACT
LANGUAGES IN WHICH THE CONTRACT MAY BE FORMALIZED
That the CLIENT declares that he has been offered 15 days in advance and in the language chosen by him, the pre-contractual information referred to in art. 35 of Law 5/2019.
WITHDRAWAL OF THE INTERMEDIATION CONTRACT
The CLIENT may withdraw from this intermediation contract within fourteen calendar days following its formalization without the need to allege any cause and without penalty, having to communicate it reliably and in writing THE INTERMEDIARY, at the address listed in the heading of this document . You must meet only the duly informed expenses that have been incurred in accordance with the Eighth Agreement hereof.
SILEX INVERSION Y GESTION SL may withdraw from the contract once it has found the impossibility of finding a solution in the market that meets the CLIENT's requirements, notifying the latter in writing, via email, fax or regular mail.
EXECUTION FOR NON-PAYMENT - FORMS OF EXECUTION
The borrower will lose the right to the term and the early expiration of the contract will occur, in addition to the rest of the breaches detailed in the FEIN and the draft contract, if the following requirements concur:
a) That the borrower is in default in the payment of a portion of the loan principal or interest.
b) That the amount of overdue and unsatisfied installments equals at least:
- At three percent of the amount of the capital granted, if the default occurs within the first half of the duration of the loan. This requirement will be considered fulfilled when the overdue and unpaid installments are equivalent to the non-payment of twelve monthly installments or a number of installments such that it supposes that the debtor has breached its obligation for a period of at least twelve months.
- At seven percent of the amount of the capital granted, if the default occurs within the second half of the duration of the loan. This requirement will be considered fulfilled when the overdue and unsatisfied installments are equivalent to the non-payment of fifteen monthly installments or a number of installments such that it supposes that the debtor has breached their obligation for a period of at least fifteen months.
c) That the lender has required the borrower to pay, granting him a period of at least one month for compliance and advising him that, if not attended, he will claim the full repayment owed on the loan.
For the execution of the loan in case of non-payment, the creditor may choose to:
- Civil procedure: Regardless of the exercise of ordinary actions, should the case arise that the creditor party has to demand compliance with the obligations arising from this contract, it may use at its choice any of the procedures admitted by Law and, in special, the general or mortgage executive regulated in the current Civil Procedure Law, and the extrajudicial one.
- Extrajudicial sale of the mortgaged property: In the event of non-payment of the capital or interest, the creditor may also claim the loan and how many rights therein may arise, through the extrajudicial sale of the mortgaged property, in accordance with the provisions of the art. 1858 the civil code and in art. 129 of the Mortgage Law, for which purpose it is established as the appraisal value of the mortgaged property (s).
CALCULATION OF THE ANNUAL EQUIVALENT RATE (APR)
Base equation that translates the equivalence of credit provisions, on the one hand, and of reimbursements and payments of expenses, on the other. The base equation, which defines the equivalent annual rate (APR), expresses the annual equivalence between, on the one hand, the sum of the updated values of the credit provisions and, on the other, the sum of the updated values of the amounts reimbursement and payment of expenses, that is:
where: - X is the APR.
- m is the order number of the last credit draw.
- k is the order number of a credit disposal operation, so 1≤k≤m.
- Ck is the amount of the credit draw number k.
- tk is the time interval, expressed in years and fractions of a year, between the date of the first credit drawdown operation and the date of each of the following drawdowns, so that t 1 = 0.
- m 'is the order number of the last reimbursement or payment of expenses.
- l is the order number of a refund or payment of expenses.
- Dl is the amount of a refund or payment of expenses.
- sl is the time interval, expressed in years and fractions of a year, between the date of the first credit draw and that of each reimbursement or payment of expenses.
For the resolution of any discrepancy, litigation or conflict, the parties submit to the courts and tribunals of the CLIENT's domicile.
In any case, SILEX INVERSIÓN Y GESTIÓN SL has adequate internal means for the resolution of extrajudicial claims that may arise:
- There is a Customer Service Department with an address for notification purposes in Lagos (Bacelona) Calle Germans 19 Zmuba ave Apartment 6, email address is [email protected]
- Said customer service department has the obligation to attend and resolve the complaints and claims presented by its customers, within 14 days of their presentation in the department.
- If, after the decisions with which the complaints and claims processing procedures are finalized, the clients are dissatisfied with the result of the pronouncement, they may go, until the entry into force of the law provided for in the 1st additional provision of Law 7 / 2017, of November 2, to the Commissioner for the Defense of the Financial Services Client (Claims Service of the Bank of Spain, in Madrid at calle Alcalá, 48, telephones 913385068 and 913385851). It is necessary to go to this Customer Service Department before going to the Bank of Spain's Claims Service.
- SILEX INVERSIÓN Y GESTIÓN SL has a CLAIM RESOLUTION procedure available to its clients.