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Pafilia Internal Financing - Comparison Vs Bank Loan

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The new Pafilia internal financing scheme, which is available on all ready properties, enables clients to borrow up to 50% of the property value. Additionally, clients are able to take delivery of the property once a 50% personal contribution has been paid. The borrowed amount is subject to a fixed interest rate of 6.5%, capitalised every six months, and is repayable in monthly or quarterly installments over a five year period. Clients benefit from many savings, such as no loan arrangement fees, saving up to 2,5% of the property value (mortgage fees are 1% and arrangement fees 1,5% of the property value), no life insurance requirements (saving up to 0.075% per month on the loan balance) and no early settlement fees.

Please find below a comparison of the Pafilia internal financing scheme vs. a bank loan, followed by a hypothetical calculation:

 

PAFILIA INTERNAL FINANCING

BANK LOAN

THE BENEFITS OF PAFILIA FINANCING

Documentation & clearance

up to 1 week. no age limitation. no documentation necessary.

approx 3 months.  documentation required: tax and banking details, account statements, references…

simple and efficient

Cost of credit

0%

2.5% of loan value

significant saving

Interest rate

6.5%

6.5%

market rate

Variable/ fixed rate

fixed

variable

no variable rate risk

Accrual per

capitalised every 6 months

Capitalized every 6 months

industry practice

Minimum loan term

1 year

10 years

convenience of short-term loan

Early settlement fee

0%

5% of the annual payments

no penalties enable significant saving

Late payment fee (2-6 months)

9%

12%

lower fee compared with a bank loan

Late payment fee (6 months +)

9%

14%

late payment fee remains constant, unlike bank fee

Life Insurance

Not necessary

0.075% per month

significant saving

Repayment Frequency

monthly or quarterly

monthly or quarterly

Flexible payment schedule

Maximum loan duration

5 years

30 years

attractive short-term financing solution

Minimum initial contribution

50%

30-40%

 


Hypothetical calculation:


 

PAFILIA INTERNAL FINANCING

BANK LOAN

Credit amount

€ 200,000

€ 200,000

Credit period

5 years

10 years (repaid over 5 years)

Interest rate

6.5%

6.5%

Total interest payable

€ 35,366

€ 35,366

Cost of credit

€ 0

€ 5,000

Early settlement fee

€ 0

€ 8,149

Life insurance

€ 0

€ 4,500

Total cost of financing

€ 35,366

€ 53,015

 

Head Office:
33 Nicodemou Mylona
Pafos, CY8101
Cyprus
T: +357 26 848 800
F: +357 26 934 910
E: info@pafilia.com
Freephone: 8000 89 89
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Limassol Office:
307-309
28th October Avenue
Limassol, CY3105
Cyprus
T: +357 25 590 880
E: info@pafilia.com

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Moscow Office:
12 Kransopresnenskaia
Naberezhnaia
Poz'ezd 6, Office 1032
Moscow, Russia
T: +7 (495) 258 1970 /71
F: +7 (495) 258 1970 /71
E: russian@pafilia.com
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Beijing Office:
Room 3305, No.6 Building
Jianwai SOHO
No.39 East 3rd Ring
Middle Road, Chaoyang
District, Beijing, China
T: +86 186 1115 0291
E: info@pafilia.cn.com
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Athens Office:
Corner 58 Kafkasou &
52 Skopelou Streets
Kypseli
Athens
Greece
T: +30 210 2717100
E: c.diagkos@pafilia.com
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