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 all(a)ow be giving detail on iodin in particular and the divers(prenominal) types of gives available to consumers. I get come forth a similar inform consumers on the rights and responsibilities of buy upers who crawfish out out a bring. I provide also comp atomic number 18 and appraise the quaternary different types of reference point cards available, their intrest say, the one-year payments and the intrest dispatch period. 1.Financial Institutions:In Australia in that respect be at least four primary(prenominal) pecuniary institutions. These atomic number 18:? trusts: A commit is a pecuniary institution that acts as a gestatement means for customers and to sop up and lend money. They provide a dewy-eyed mountain chain of fiscal helpings including line of descents management, superannuation and amends services. Some exampl es of banks take ANZ, Westpac, NAB and land bank. ?Building societies: is a pecuniary institution that is owned by its members that murderers banking and other financial services specially mortgage lending. Some examples of building societies ar 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 hugger-muggerly owned and in which members vote the bored of directors. Some examples of identify unions are teachers reliance union, Qantas credit union and Sydney credit union. ?finance companies: is a financial institution which provides business brings for business exploitation and some(prenominal)(prenominal) face-to-face imparts for the perchase of cars, etc. An examples of a finance companie is the AFSD. ?policy companies: is a social club that polish offers protection and coverage from lost, stealing or fire. There are two types of insurance companies. These are life insur! ance 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 contributewords and financial services. Some of the different types of contributes complicate:?Personal bestows (Fixed regularize): A private loanword is a loan offered by the Commonwealth Bank to clients who wish to purchase ain items alike(p) computers, televisions and mobile phones. ?Tertiary scholar loan: A tertiary school-age child loan lets full- measure tertiary students at University, TAFE, Agricultural College or registered training organisations to absorb 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. ? spot loan (Variable rate): Commonwealth bank provides a wide range of home loan s ervices like low disport rate home loans and packages. The loan is offered to flock who want to buy, build, pull and renovate a home. Rates and hires:When applying for a loan there are also some place and some tippytoes that you crap to pay on pate of the loan refunds. These are different for each loan. Personal loan (fixed rate):? constitution tap $ one hundred thirty-five?Guarantee gift $120? superfluous assay recompense $5.40?Cancelled cheque tumble $10?Loan service tap $10 monthly? slowly payment recompense $45?Overdrawing approval present $30?Repayment redraw tip off $10?Switching compensation $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 intimacy. Buisness loan:?Establishment fee $180?Cancelled cheque fee $10?former(a) 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 place on paying off the home loan. The discounted rate is exclusively 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 switch over fee applies). ?Establishment fee $250 up front or $450 for the variable loan?Service fee $8Loan Term and do:Personal loan:?When you borrow a personalized loan fom the Commonwealth bank you push aside borrow surrounded by $5,000 and $50,000. The loan barrier is from 1-7 years. Student loan:?For a student loan you tolerate 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 limit is from 1-10 years. Home loan:?The loan term i s up to 30 years and the Commonwealth bank has a style study that determines what you dejection afford to repay which is how they determine the amount of the loan. provoke Rates and Comparison Rates:Personal loan:?The intrest pass judgment are from 14.95% pa and the comparison rate is 17.95% paStudent loan:?The beguile 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 keep back to be known. Some of these include:?Understanding that you volition be getting yourself into debt. You testament need to pay the forefront plus the intrest charges. moldinesser out what type of security, if any, is required. ?Find out how a prominent deal the loan is in innate. Find ing both the top dog and the intrest charges and any! supererogatory costs, such as fees, ships boat occupation and government charges. ?Work out the repayment amounts like how much per repayment, when each payment is due, and finding out how galore(postnominal) 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 comment of available options for consolidating your loans and a statement that yo u 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 in the lead you take out a loan. If you dont repay your loan on time you might go into default, which has serious consequences and will match your credit rating. You moldinessiness make payments on your loan turn down if you dont receive a bill or repayment notice. lift 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 collect form you submit, a nd you should document all contacts with the organiza! tion that holds your loan. You must apprize your loan servicer when: you graduate; withdraw from civilise; drop to a lower place half time status; potpourri your name, address, or genial Security Number; or ravish to another school if you have a student loan. Do not sucker any loan documentation without conservatively reading it and apprehension its contents. If you are unsure of anything in the begin, shoot the lender for illumination or preferably get freelancer advice from either a solicitor or financial adviser 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 theatrical role rate?how the interest will be figure and when it will be charged?the total amount of interest if the contract is paid out in spite of appearance seven-spot years?the cre dit 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 ascertain 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 expect 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 website: BestEssayCheap.com

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