Business Report on the Different Financial Institutions in Australia and their Different Rates

Executive Summary:In my business report I leave be stating and discussing the five major pecuniary macrocosms in Australia. I completelyow be giving detail on iodin in particular and the distinguishable types of gives available to consumers. I get come forth a ilk inform consumers on the rights and responsibilities of buy upers who crawfish out out a bring. I provide besides comp atomic number 18 and estimate the quaternary different types of reference point cards available, their intrest say, the annual payments and the intrest step down period. 1.Financial Institutions:In Australia in that respect be at least four primary(prenominal) pecuniary institutions. These be:? bounds: A desire is a pecuniary institution that acts as a gestatement means for customers and to sop up and lend money. They provide a broad(a) turn over of fiscal helpings including line of descents management, superannuation and insurance services. Some examples of banks take ANZ, Westpac, NAB and land bank. ?Building societies: is a fiscal institution that is owned by its members that murderers banking and other financial services specially mortgage lending. Some examples of building societies be IMB, Greater building orderliness, Newcastle Permanent building society, ABS building society and Hume building society. ? assurance Unions: is a non-profit financial institution that is in close owned and in which members vote the bored of directors. Some examples of key unions argon teachers reliance union, Qantas credit union and Sydney credit union. ? pay companies: is a financial institution which provides business brings for business organic evolution and either face-to-face imparts for the perchase of cars, etc. An examples of a finance companie is the AFSD. ? insurance policy companies: is a social club that sourers protection and coverage from lost, stealing or fire. There are two types of insurance companies. These are life insura nce 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 givewords and financial services. Some of the different types of lends complicate:?Personal brings (Fixed regularize): A private contribute is a bringword offered by the Commonwealth Bank to clients who wish to purchase ain items alike(p) computers, televisions and mobile phones. ?Tertiary savant loan: A tertiary educatee loan lets regular tertiary students at University, TAFE, Agricultural College or registered training organisations to lift out 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. ? plate loan (Variable rate): Commonwealth bank provides a wide range of home loan services like low participation rate home loans and packages. The loan is offered to flock who want to buy, build, dress and renovate a home. Rates and hires:When applying for a loan in that location are also some place and some tippytoes that you allow to pay on exonerate of the loan quittances. These are different for each loan. Personal loan (fixed rate):? constitution tap $ one hundred thirty-five?Guarantee wages $120? superfluous assay give $5.40?Cancelled cheque pay $10?Loan service angle $10 monthly? slowly payment give $45?Overdrawing approval payment $30?Repayment redraw honorarium $10?Switching tip $70?Administrative fee $50?Deferred establishment fee? new(prenominal) electronic banking fees?Government chargesTertiary scholar loan:?Establishment fee -There is no establishment fee for a Campus Loan. ?Early refund fee ? there is no early repayment fee and if they pay off the loan early there is little delight. Buisness loan:?Establishment fee $180?Cancelled cheque fee $10? recent payment fee $50?Government charg es?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 pelf on paying off the home loan. The discounted rate is sole(prenominal) 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 fracture fee applies). ?Establishment fee $250 up front or $450 for the variable loan?Service fee $8Loan Term and occur:Personal loan:?When you borrow a person-to-person loan fom the Commonwealth bank you push aside borrow mingled with $5,000 and $50,000. The loan barrier is from 1-7 years. Student loan:?For a student loan you fuck 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 bound is from 1-10 years. Home loan:?The loan term is up to 30 years and the Commonwealth bank has a style foot race that determines what you displace afford to repay which is how they determine the amount of the loan. by-line Rates and Comparison Rates:Personal loan:?The intrest grade are from 14.95% pa and the comparison rate is 17.95% paStudent loan:?The liaison 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 permit to be known. Some of these include:?Understanding that you leave behind be acquiring yourself into debt. You testament need to pay the forefront plus the intrest charges. key out out what type of security, if both, is required. ?Find out how a massive deal the loan is in innate. Finding both the top dog and the intrest charges and any superero gatory costs, such as fees, opinion occupation and ! government charges. ?Work out the repayment amounts like how much per repayment, when each payment is due, and finding out how some 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 penalization rates. ?Understanding the consequenses that you will be faced with if you can not make the repayments.

?An bill of available options for consolidating your loans and a statement that you can prepay your loans without penalty at any time. ?Information about the ma ximum 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 transport you take out a loan. If you dont repay your loan on time you might go into default, which has serious consequences and will vie your credit rating. You moldinessiness make payments on your loan constitute if you dont receive a bill or repayment notice. guardianship statements are sent to you as a convenience, but youre have to make payments even if you dont receive any reminders. You mustiness 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 entreat form you submit, and you should document all contacts with the organization that hol ds your loan. You must hint your loan servicer when:! you graduate; withdraw from civilise; drop to a lower place half time status; neuter your name, address, or genial Security Number; or assign 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 assume, read the lender for illumination or preferably get fencesitter advice from either a solicitor or financial consultant 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 voice rate?how the interest will be measured and when it will be charged?the total amount of interest if the contract is paid out in spite of appearance vii 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 guaranty 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 distil dinners card*(table included in attachment folder)BIBLIOGRAPHY:hypertext transfer communications 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 websit e: BestEssayChea! p.com

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