What does it mean to take a secured loan? What is a secured consumer loan
Secured loan - what is it? Come on in - don't be shy! My friends are not shy, and when it comes to bank loans, they run to me for advice.
And so did my dear Ozerovs. Their child is going to school this year, but there is no separate room, there is nowhere to put a desk.
They thought about buying a more spacious apartment, but they were worried that there would not be enough money, because the wife had just gone on maternity leave - they gathered for the second.
I began to reassure them that they would just need to provide security.
Loan collateral is a form of insurance against non-payment of loans, that is, a specific source of debt repayment in the event that the borrower defaults on its obligations.
According to Article 326 of the Civil Code of the Russian Federation, there are the following ways to secure loan agreements:
- guarantee,
- pledge,
- bank guarantee,
- penalties,
- retention of property, etc.
One of the most common forms of collateral for loan agreements is collateral. This form of security assumes that the bank, in case of non-repayment of the loan debt by the borrower, can use the pledged property to ensure the return of the loan amount, interest on it, as well as the penalties specified in the contract.
A warning!
That is why, and also due to the fact that there is a risk of a decrease in the market value of the pledged object, the collateral value is always lower than the current market value of the property.
There are the following types of collateral:
- pledge of property (movable or immovable)
- pledge of property rights.
As a rule, a pledge agreement is drawn up if the requested loan amount is significant. Most often, banks accept real estate as collateral, while the pledge agreement must be registered with the Federal Registration Service.
Residential, non-residential, office, industrial and other premises, capital garages and other similar real estate can act as real estate. When registering a mortgage agreement, the acquired housing acts as collateral.
As movable property, banks can accept cars, equipment, office equipment, goods and materials, as well as other property of a certain value as collateral. Also, property pledged may be shares, bonds, bills, other securities, deposits, etc.
A pledge of property rights is understood as a pledge of the customer's right under a work contract, a pledge of a lease right, etc. The property that is the subject of pledge must be liquid, be owned by the borrower and be free from other obligations.
After the transfer of property as a pledge, the borrower loses the right to dispose of it without the knowledge of the bank, but often the subject of pledge remains in the use of the pledgor. In this case, the bank has the right to check the availability and condition of the pledged property, and in case of damage or loss, demand early repayment of the loan.
Sometimes credit organizations also require to insure the collateral.
The second, and perhaps the most common form of collateral for a loan, is a surety. In this case, the third party (guarantor) is obliged to repay the borrower's debt to the bank if he does not fulfill his obligations under the loan agreement.
Attention!
The guarantor may be a legal or natural person that meets certain conditions (including having sufficient solvency). Depending on the amount of the agreement, the solvency of the borrower and other conditions, the bank may require the involvement of one, two or more guarantors.
The next fairly common type of security is a penalty. It implies the obligation of the borrower to pay the bank penalties in the amount established by the loan agreement, in case of violation of the terms of the agreement (most often in the event of a delay in repayment of the next payment).
When lending to legal entities, a bank guarantee is often used as collateral, which is a written undertaking of another bank. This document also indicates the amount for which the guarantee is issued.
Other types of security are used much less frequently. Often, one loan agreement is accompanied by several types of loan collateral.
source: http://www.icofc.ru/articles/zaemshik.php
Loan collateral - which one is right for you?
When drawing up a loan agreement, banks, as a rule, require the provision of appropriate security, the type of which is determined by a particular loan program.
Loan collateral is the bank's insurance against cases of non-payment under loan agreements.
The most popular types of collateral are pledge and surety of third parties. Pledge is a type of security in which the bank, in the event that the borrower fails to fulfill its obligations under the loan agreement, can compensate for its losses at the expense of the pledged property.
There are the following types of collateral:
- pledge of immovable property, otherwise called a mortgage,
- pledge of other property
- pledge of property rights.
What can be offered to the bank as collateral? This largely depends on what kind of loan you take out.
If a bank lends a small amount, then often one or more guarantees are sufficient as security. When issuing a significant amount, as a rule, a pledge agreement is drawn up.
A warning!
The role of security is best performed by real estate. The real estate pledge agreement is subject to mandatory state registration. Real estate can be anything. It can be an apartment, garage, country house or office space.
Moreover, the higher the market value of the property offered as collateral, the greater the amount you can request from the bank. However, for example, when applying for a mortgage loan, in the overwhelming majority of cases, the acquired property is the subject of collateral.
The subject of collateral is also strictly defined when applying for a loan to buy a car - the car purchased by the borrower remains pledged to the bank. In other cases, in addition to real estate, equipment, machinery, office equipment, goods and other inventory items, etc. can act as collateral.
Also, liquid securities (for example, shares) can be offered as collateral. In this case, the final decision on the choice of collateral is made by the bank.
However, it should be borne in mind that only property that meets the following requirements can be the subject of pledge:
- the property must be owned by the borrower, and this must be documented;
- it must not be pledged under any other agreements;
- the subject of pledge must have a documented price;
- the property offered as collateral must be in demand in the event of its sale, and, accordingly, must not be in a neglected or dilapidated state.
As a rule, the amount of the loan issued is always less than the market value of the collateral. The Bank has the right to control the safety of the collateral, whether it is movable or immovable property.
The borrower does not have the right to sell, donate, bequeath or perform any other similar actions with respect to property pledged. Sometimes banks also require to insure the collateral.
Guarantee is a form of loan security, consisting in the fact that a third party, called the guarantor, assumes obligations to the bank to return the issued loan funds. The guarantor is selected, as a rule, based on the level of his income.
In the event that the borrower fails to fulfill its obligations under the loan agreement, the bank sends a notification to the guarantor, after which the guarantor is obliged to transfer the required amount to the bank to repay the loan.
Attention!
Depending on the type of loan agreement, both legal entities and individuals can act as a guarantor. A surety agreement is always drawn up in writing and is an agreement between the bank and the surety.
Banks also use such types of security as forfeit, credit insurance, bank guarantees, etc. Banks can also use several different forms to secure one loan agreement.
source: http://www.scfactoring.ru/press-1385.php
What is collateral and collateral? Example and calculation formulas
A pledge is a way of securing obligations between a debtor (pledger) and a creditor (mortgagor). Collateral can be primary or secondary. In the first case, the pledge is transferred to the Bank as a pledge of the first order.
If the borrower receives another loan (while refinancing the first loan) in another bank, the second stage pledge mechanism is triggered. In this case, the contractual relationship between the first Bank and the second (re-mortgage) shall be concluded in writing, and the pledge shall be re-mortgaged to the second Bank.
The creditor has a preferential right to pledge over other creditors. Relations between the parties are specified in the contract and are regulated by the Civil Code of the Russian Federation, the Federal Law "On Pledge", the Federal Law "On Mortgage".
Collateral is a set of conditions that gives the creditor confidence that the debt will be repaid. A loan can be secured by a pledge in the form of real estate, movable property and other highly liquid assets (securities, guarantees), as well as a surety.
A warning!
In addition to the basic collateral for a loan, in a number of countries there is a need to provide additional sources of income, because the credit risk for the lender is higher.
Similarities and differences between collateral and security
Thus, “Pledge” and “Security” are two different concepts. However, in the banking system there is a generalized expression - "Collateral", which implies the entire system of contractual relations and obligations between the debtor and the creditor.
Loan security
There are types of loans in which a prerequisite is the provision of collateral. These include: commercial, mortgage, consumer, leasing, etc. For them, banks necessarily require a "hard" pledge.
With car loans, express loans, student loans and other “light” loans, Banks generally accept purchased cars, inventory items, movable property, etc. as collateral. The pledger can be both the debtor himself and a third party, with his written permission.
Documentary component
After the loan is issued, a borrower package is formed. It contains collateral for a loan, agreements, and all other necessary documents in accordance with the “Lending Procedures”.
Each unit of collateral in the Bank is accounted for as one off-balance sheet liability and is reflected in the corresponding accounting entry. In practice, the nominal value of 1 collateral is usually equal to 1 currency unit and is kept until the end of the loan term.
At the end of the loan term, the off-balance sheet obligation is debited from the Bank's obligations and returned to the borrower against signature.
What happens if you don't pay the bank?
In case of non-fulfillment of obligations by the mortgagor specified in the agreement, the Bank delivers to the debtor a notice registered with the relevant authority on the commencement of the procedure for the enforcement of collateral to pay off the debt.
Attention!
If the debtor does not “respond” to the Bank's actions in pre-trial proceedings, the Bank has the right to satisfy the obligation by selling the collateral.
The lawyer prepares a package of documents (correspondence between the debtor and the creditor), signed contracts are attached, the full amount of the debt is calculated and the case is submitted to the court.
When the court decides in favor of the creditor, the debtor's property passes into the possession of the Bank and is sold at an open auction under the hammer.
If the court decides in favor of the debtor, then this debtor can only be envied, because this is a very small percentage of all court cases.
Calculation of collateral and liabilities
In order to secure a loan as collateral, the loan officer first calculates the amount of the debtor's obligations:
loan amount + accrued % for the period according to the repayment schedule = loan obligations
The collateral must cover the amount of the liabilities. Registration of pledge agreements takes place in the relevant authorities and is certified by a notary.
Calculation example
To reinforce the above material, let's give 2 examples:
Example 1.
You took out a loan:
Loan parameters 1
Target for replenishment of working capital
Amount 5,000,000 rubles
% rate 11% per annum
Term 60 months (5 years).
As security for the loan, you provide a 3-room apartment with an approximate market price of 16,000,000 rubles.
A warning!
When calculating the collateral value of real estate, Banks apply a liquidity ratio of approximately 40-70% of the value of the property.
In your case, let's say it will be 50%. Thus, your apartment will be evaluated by a Bank specialist in the amount of 8,000,000 rubles. Now let's calculate the amount of liabilities:
5,000,000 rubles * 11% * 5 years = 7,750,000 rubles.
Congratulations, your collateral fully covers your obligations and you have a great chance to get a loan.
Example 2
You receive a mortgage loan for the purchase of an apartment, the cost of which is 14,000,000 rubles.
The goal is to buy an apartment
Loan options for buying an apartment
Amount 14,000,000 rubles
% rate 10% per annum
Term 120 months (10 years).
In mortgage lending, the provision of the acquired real estate is required as collateral for the loan.
What will be the calculation of collateral? Let's take a closer look here. The liquidity ratio will also be equal to 50%.
Now look: If the purchased property costs 14,000,000 rubles, then after applying the coefficient, its assessed value as security will be equal to 7,000,000 rubles.
And the amount of your obligations to the Bank is:
14,000,000 * 10% * 10 years = 28,000,000 rubles!
There was a difference of 21,000,000 rubles.
In this case, you need to provide additional security for the difference of your obligations. However, one of the conditions for mortgage loans is own contribution to the acquired property. Usually it varies from 30% to 70%.
source: http://mobile-testing.ru/zalog_obespechenie_kredita/
Types of collateral for loans to legal entities and entrepreneurs, features of providing collateral
One of the principles of lending is the security of the loan. When granting a loan, the bank reduces its risks by drawing up collateral and guarantee agreements.
The collateral accepted by the bank for a loan is divided into:
- basic
- additional.
The principal collateral must cover the entire amount of the borrower's obligations under the loan.
Attention!
The amount of liabilities is understood as the amount of the principal debt (loan amount), as well as commission and interest payments on it, calculated for a certain period.
As a rule, the amount of payments is calculated for a quarter, or for two quarters (depending on the established frequency of interest payments), less often - for the entire period of the loan agreement.
Loan collateral - calculation example
To do this, you need to determine the minimum estimated collateral value - this is the amount of the loan and payments, as indicated above. The estimated collateral value divided by the adjustment factor gives the market value of the collateral.
For example, with a loan amount of five hundred thousand rubles at eighteen percent per annum and a monthly commission of one percent per annum, the calculation will be as follows:
(18+1)/100/365*92*500,000+500,000) = 523,945.21 (rubles) is the required estimated collateral value of the loan collateral,
523,945.21/0.6=873,242.02 (rubles) the minimum market value of collateral for the requested loan, where
(18+1)/100 - interest rate and monthly commission payment (as a percentage per annum),
365 is the number of days in a year,
92 - the number of days in the period (this value varies depending on the lending conditions of a particular bank),
5000000 - loan amount,
0.6 is a correction factor applied to a certain type of collateral (the value also varies depending on the type of collateral and lending conditions of a particular bank).
The commission for granting a loan is not taken into account, since the payment of this commission is carried out at a time before the first provision of credit funds to the borrower.
The main collateral for the loan
In the overwhelming majority of cases, property collateral acts as the main security for the borrower's obligations to the bank: real estate, equipment, transport.
The property pledged to the bank may belong to both the borrower himself and a third party. Pledgers can be individuals and organizations.
If the mortgagor - a third party - is an organization, the bank will ask for a full package of documents (title and financial documents) to analyze the legal capacity and solvency of the mortgagor.
The financial condition of the mortgagor must be stable. A necessary condition is the absence of negative net assets.
To accept property as collateral, it is necessary to confirm the property right of the mortgagor to this property.
When pledging:
- real estate is a certificate of ownership issued by the registration chamber and documents - the basis for the emergence of rights,
- transport - PTS (vehicle passport) and vehicle registration certificate,
- equipment - confirmation of the fact of payment (payment order or sales and cash receipts), confirmation of the fact of delivery (waybill, invoice and contract).
Less often, especially in times of crisis, inventory items are accepted as collateral: goods for resale or raw materials and materials owned by the borrower. Here the correction factor is more rigid, in most cases it is 0.5.
Advice!
In the case of storage of goods and materials on the territory of another organization, it is necessary to provide the bank with a storage agreement, to which an additional agreement will be concluded on allowing the admission of bank representatives to the territory where the collateral is stored to conduct ongoing checks on the availability of collateral.
The property pledge agreement, with the exception of the real estate pledge, comes into force from the moment of signing. Real estate pledge agreement (mortgage agreement) is subject to state registration.
As for the equipment accepted as collateral, it should not be stationary, unique, unparalleled, with a narrow scope. The property must have individual characteristics for the possibility of its identification (serial number, inventory number, etc.).
Transport, in turn, must be in good technical condition, on the move, not older than a certain age (as a rule, no more than ten to fifteen years).
Real estate accepted as collateral is non-residential buildings, structures, land plots, unfinished (if the right of ownership is registered in accordance with the current legislation). Residential real estate is accepted as collateral for a loan if no one is registered in it.
Vessels (sea and air) can also serve as collateral. The bank must provide extracts from the registration service on the absence of encumbrance on the subject of collateral.
If there are executed and registered lease agreements with third parties, the bank may require the conclusion of an additional agreement to the lease agreement on the termination of the lease agreement in the event that the bank forecloses on collateral.
For individual lending programs as collateral, the following can also be accepted as the main collateral:
- the right to claim under the contract,
- guarantee of the municipality,
- promissory note (in most cases, Sberbank of the Russian Federation),
- bank guarantee,
- acquired property, etc.
Let us dwell briefly on each of these types of support.
Right to claim under a contract is accepted as collateral at the residual value of the contract, which is calculated as the difference between the amount of the contract and the advance payments made.
A warning!
This contract must specify the condition under which all transfers are made to the borrower's current account opened with the creditor bank, and amendments to the contract are not possible without the consent of the creditor bank.
The loan repayment schedule is synchronized with the payment schedule under the contract; upon receipt of proceeds under the specified contract, it is written off as repayment of the borrower's debt to the bank.
Guarantee of the municipality (MO) is accepted as collateral if the bank has concluded an agreement with this MO and, in turn, the budget of the MO provides for the costs of providing guarantees for loans to enterprises and individual entrepreneurs.
bill of exchange(in most cases, a bill of Sberbank of the Russian Federation) is one of the most interesting types of security.
On the one hand, a promissory note is the same money, but placed in a security for a certain period of time with certain conditions (on a promissory note, the holder of a bill can receive interest from the bank).
So, when providing a bill as collateral for a loan, the risks of the bank are reduced to the maximum and the requirements for the borrower are correspondingly more liberal, the bank's discount is much lower.
bank guarantee may serve as collateral if the creditor bank has set a risk limit on the issuing bank. If the acquired property acts as security, then an appropriate agreement must be signed between the bank and the seller.
And in the contract of sale, signed between the buyer (borrower) and the seller, a condition must be stipulated according to which, when the buyer (borrower) provides the seller with a part of the payment (usually in the range of ten to twenty percent) and a bank guarantee letter (or a signed loan agreement, as an option), the right ownership of the subject of the contract of sale passes to the buyer.
Attention!
The buyer (aka the borrower) draws up a pledge agreement with the bank, and the bank, in turn, transfers the remaining amount to the seller of the property on a secured loan.
Additional collateral for the loan
Additional collateral for a loan can also be a property pledge, and a guarantee of legal entities and (or) individuals.
When lending to small businesses, it is mandatory to provide a guarantee from the main founders of the enterprise or the head, as well as persons who have the opportunity to directly influence the decisions made by the enterprise.
If the borrower is part of a group of related enterprises, the bank may require a guarantee from the main organizations of the group.
source: http://www.zanimaem.ru/kredit-dlja-biznesa/korporativnie-kredity/obespechenie-kredita.php
Secured and unsecured consumer credit - main differences
Main types of consumer credit:
- loan without collateral.
Recently, such concepts as secured consumer credit and unsecured credit have become increasingly common. It is worth learning in more detail how these types of loans differ, as well as what advantages each of these loans can characterize.
First of all, it is worth saying that a secured consumer loan is a kind of guarantee to a banking institution that, in the event of unforeseen life circumstances, the funds taken on credit will still be returned to the bank.
For example, a pledge of some valuable property of the borrower or a guarantee of another individual or legal entity can act as collateral for a loan.
In other words, when the borrower, for some reason that has arisen, cannot pay the loan debt, then the property pledged to a banking institution or other credit institution will be sold, and the funds received will be returned to the banking organization.
A guarantee implies credit obligations to pay debts to another person. In any case, the banking organization will not remain in an advantageous position.
A warning!
Describing consumer loans without collateral and security, which do not imply any additional collateral and guarantee, we can say that a banking organization issues a loan to a borrower on a trusting relationship.
However, this does not mean at all that upon termination of the fulfillment of credit obligations, the borrower does not risk anything and will not be responsible for everything according to the law.
It is precisely the federal law that prescribes that in the case of consumer lending without collateral, the client must answer to the bank with all his property that he has.
In life, it looks like this: an unscrupulous payer does not pay the loan debt for a certain period of time.
First, the exacting security services of the bank are connected, which will repeatedly remind the borrower of his debt, only then a court decision will be issued ordering the collection of all the valuable property of this borrower.
The bailiff services are already responsible for this process, whose duty is to come to the place of residence (or registration) of a citizen, describe and confiscate household appliances, electronic equipment, vehicles and many other property for the entire amount of the outstanding loan debt.
Now it is worth noting the positive and negative aspects if the borrower draws up a consumer loan with or without collateral. Of course, the conditions of these types of loans: in the first case, they are usually much simpler.
But with an unsecured loan, the borrower is required to submit income documents, and the loan amount is usually quite insignificant, and the interest rate, on the contrary, is much higher.
Nevertheless, the pledge requires the collection of a large number of documents, the registration of insurance for the pledged object, and this also requires additional costs.
What type of credit program to use will be decided by the client. In any case, the borrower must remember that credit debt implies its return and full repayment. Do not bring your situation to the point of forced collection of debt.
Consumer lending has long been included in the standard set of financial instruments of a modern person. Since a cash loan is a serious financial obligation, banks additionally insure the borrower's liability using methods fixed by civil law and establish one or more types of security for the loan. Nevertheless, the trend of recent years has shown that more and more financial institutions are ready to lend to individuals without additional burden. We will talk about what collateral is for a loan, who is responsible for default on an unsecured loan and how to get favorable conditions in this article.
Unsecured loan - what does it mean
To understand what an unsecured loan is, let's briefly consider the concept itself.
According to the civil code, security is a way to protect the property interests of the creditor.
Simply put, if the borrower fails to fulfill its obligations, the collateral serves as an additional source through which the lender can get what he was counting on.
Usually, collateral is required when borrowing a significant amount (from 3 million rubles and more).
Among the existing types of collateral for obligations, when applying for a consumer loan in cash, banks use only some of them. In particular, under the terms of Sberbank, the guarantee of individuals and legal entities and various types of collateral are used:
- real estate or vehicle;
- Ingots of precious metals or securities;
- Property rights of claim under contracts.
The first two types of security are the most common.
It is important to know that under the terms of the law, guarantors are jointly and severally liable (unless subsidiary liability is specified in the suretyship agreement).
This means that the bank has the right to require the guarantor to fulfill the debtor's obligation according to the same rules that are established for the borrower, and the guarantor will be liable for the obligation until it is properly performed.
If a pledge is used as collateral in a cash consumer loan, an agreement must be drawn up for it.
In banks, it has a standard form. It describes the subject of the pledge, its essential features, fixes the amount and term for the performance of the obligation that this pledge provides.
Often, the contract spells out the procedure for foreclosure and the procedure for the sale of property, which acts as collateral for a loan.
It is not difficult to understand that if, when applying for a consumer loan, the bank does not require either collateral or a guarantor from you, then such a loan is provided without collateral.
Sometimes banks use outside the legal security of a loan, requiring a potential borrower to have a deposit or salary card in a bank.
Clients are attracted by reduced rates on these types of unsecured loans. And although the law does not name the debtor's funds placed on a deposit or salary card as types of security for the performance of obligations, the facts of their presence give the bank additional arguments when restoring the violated right through the court.
Consumer loan at Sberbank
Now in almost every bank you can get a consumer loan without collateral. A large market share in the field of lending is occupied by top banks, one of which is Sberbank.
Terms and interest rates
In total, Sberbank has five loan programs, the simplest and most affordable of them is a standard non-purpose cash loan that does not require collateral or a guarantor. A loan is provided for a period of 3 to 60 months, and the credit limit reaches 3 million rubles.
After signing the agreement, the credit funds are credited to the account and can be withdrawn in cash. Repayment is carried out by annuity payments without additional commissions.
There are a lot of ways to repay a loan for free - through an Internet bank or a mobile application by transferring funds between accounts, in cash - through terminals and ATMs using a card or transfer.
According to the terms, the application is considered in a couple of hours (for paid clients) or up to two business days (for other categories of citizens) from the moment the necessary documents are submitted. The validity of the approved application is one month.
Early repayment is carried out without commissions and fines upon a written application of an individual.
Please note that if you want to repay the principal amount, it is enough to fill out an application through Sberbank online. If you wish to use the funds to repay the term of the loan, the application is accepted only at the branches of the financial institution.
It is important to understand that the date of debiting funds for early repayment is the date indicated in the application, and not the date the regular payment is debited. At the same time, you can specify any day of the week, including days off.
Interest rates are set within the following ranges:
Requirements for the borrower
Sberbank imposes standard requirements for individuals wishing to take a consumer loan in cash:
- Age from 21 to 65 (at the time of debt repayment);
- Six months of continuous work in the last place and at least a year in the last five years. Loyal conditions are provided for users who receive wages at Sberbank - 3 months of employment at the time of applying and six months of total experience.
- Registration (at the place of residence or stay).
Of course, each requirement is confirmed by copies of official documents (employment book, income statement, passport).
How to get an unsecured cash loan
When considering how to get a loan without collateral, it is enough to understand if you have a regular income with the ability to confirm it officially, and make sure that your credit history is not spoiled. In this case, there should be no problems with registration.
Fundamentally, banks differ only in interest rates. Other requirements - to the borrower, documents and general conditions (for cash loan repayment, transfer of credit funds, repayment methods) are not much different from each other.
- It is worth noting that the end of this year is one of the most favorable periods for obtaining a consumer loan over the past couple of years. The Central Bank promises to once again reduce the refinancing interest rate, and this will certainly lead to a decrease in similar banking indicators.
- If you are already a client of a financial institution, pay attention to individual (pre-approved) offers from your bank. They allow you to save time - there is no need to wait for the application to be considered. In addition, banks often offer better rates to their regular customers.
- Before taking a consumer cash loan without collateral, submit at least three to four applications for consideration. Since banks set the essential conditions on an individual basis, only with the help of an application will you be able to assess how adequate the conditions of a particular financial and credit institution are.
Please note that each bank offers to fill out an online application, but not everyone is ready to accept it for work without additional clarification from the client. Sometimes, after filling out an application, the bank appoints face-to-face negotiations. If your time is limited, choose those banks where you can immediately upload a package of documents (for example, Sberbank or Alfa-Bank).
Who is responsible for non-payment of debt
As we have already understood, if the loan is not secured, the responsibility for non-payment of the debt lies entirely with the borrower. There are no options here. Any penalty applies only to the property of the individual who committed the offense.
Conclusion
From the foregoing, it is not difficult to understand that an unsecured loan means that the responsibility for the violation of the payment schedule lies entirely with the direct offender. It is easy to take such a loan, since most of the loans issued now are unsecured according to the conditions. According to customer reviews, the loan that is offered to the user in his own bank will be the most profitable.
A loan without collateral or guarantee is one of the most popular banking services. It is provided mainly by large banks, which can take risks by issuing non-purpose loans to the population. What does unsecured loan mean? This means that the property acquired by the borrower with the money received is pledged by the bank. In case of non-payment of the debt, the bank takes this property and sells it to cover the costs.
The advantage of an unsecured loan is that you can get the money without pledging real estate or bringing a guarantor. This reduces the number of documents and, consequently, the processing time. On the other hand, a loan without collateral may have its drawbacks: among them, a high interest rate, a smaller amount, high fines and penalties for delinquency, and shorter loan terms.
What are the main conditions that banks put forward when issuing a consumer loan without collateral?
As a rule, they are standard for all banks. Among them, registration in the region where the organization operates, the appropriate age of the borrower is from 18 (21) to 79 years. The client must have a permanent job, and his work experience must be at least six months in the last place. In addition, in some banks, a loan without certificates and guarantees can only be obtained if you have a good credit history or in cases where the borrower is a participant in a salary project.
The modern lending market offers citizens a wide variety of loan products. And not always the future borrower is able to understand their differences and the intricacies of their use. For example, a consumer loan without collateral - what does this mean? In Sberbank today (October 2018) this is the only consumer loan available for registration. Let's talk about its features.
Consumer loan without collateral: the essence of the concept
Each creditor, issuing debt funds to the borrower, wants to receive certain guarantees of their return. It is for this that the bank studies the credit history of the future client, evaluates his income and the list of property. But these are all very conditional reliability criteria.
A person can at any time lose his job, and, accordingly, his income - in whole or in part. It is possible to collect property on account of debt only through the court, and this is a long and troublesome procedure. To minimize their losses, many banks require borrowers to provide additional loan guarantees. Their role may be:
- pledge of valuable property (car or apartment);
- guarantee of third-party individuals;
- guarantee of organizations, etc.
All this is called additional collateral for the loan. Guarantees are specified in the loan agreement. In case of non-payment of the debt, the bank can use them immediately, without additional proceedings. For example, to demand payment of a loan from one of the guarantors (or all at once), if the main borrower refused to pay, or to sell the property that serves as collateral.
Accordingly, an unsecured loan is an ordinary consumer loan. Unsupported by a surety, pledge or other guarantee. Almost any bank client is familiar with this type of lending.
Features of lending without collateral in Sberbank
Until recently, Sberbank allowed up to three guarantors when issuing consumer loans. To date, the bank has abandoned this practice. Today, the only consumer loan available to its customers is an unsecured loan. When it is issued, the borrower can only rely on his own income and personally bears all responsibility for the debt.
By the way! If a citizen’s salary is not enough for the required amount under this loan program, he may try to qualify for a non-purpose loan secured by his real estate. This will allow you to get more credit funds, since the payments will be provided by the apartment.
The conditions for obtaining the loan we are considering from Sberbank directly depend on the category of the client. Persons receiving wages or pensions to an account with this bank can count on some preferences. For all others, the bank has set more stringent conditions for this program. Let's consider all the nuances in more detail.
For example, payroll customers are entitled to a reduction in interest rates.
Requirements for borrowers
The basic requirements for citizens wishing to receive a loan are standard. If the potential borrower is not a payroll client of the bank, does not receive a pension or social benefits on a savings account, then the requirements are as follows:
- registration in the territory of the Russian Federation;
- age - 21–65 years;
- continuous work with the current employer for at least 6 months;
- total work experience for the previous 5 years - at least 1 year.
Important! The upper age limit indicates the age that the client must have reached by the time of the last payment on the loan.
For payroll clients, the conditions are a little softer - the minimum age is reduced to 18 years, there are no requirements for general experience, and it is enough for them to work at their current place of work for only 3 months. If a potential borrower receives pension payments to an account with Sberbank and at the same time officially works, his work experience must correspond to at least 3 months with the current employer and at least 6 months over the past 5 years.
Important! Registration requirements and age limits remain common for all categories of clients. The exception is judges - for them the maximum age limit has been raised to 70 years, in accordance with the Federal Law No. 1.
How much can you expect
The minimum possible loan amount under this program is 30,000 rubles. With the maximum, everything is much more interesting. The following limits of the maximum amount are indicated on the bank's website: 5 million rubles. - for payroll clients and 3 million rubles. - for all other persons.
However, after examining the detailed terms of lending, you can find out that these figures indicate the limit of the borrower's total credit debt to Sberbank. For example, if a payroll client has a mortgage for 4 million rubles in Sberbank, he can receive no more than 1 million rubles under this program. Applications of clients of other categories, if they have such a mortgage, will be completely rejected.
Loan terms
A loan without collateral can be issued, at the choice of the client, for a period of 3 months to 5 years. But here there is a nuance. If a potential borrower has only a temporary registration instead of a permanent residence permit, a loan can be issued only for the period of its validity. This restriction applies to all citizens, except for payroll and pension clients of the bank, as well as employees of organizations accredited by Sberbank.
So if the temporary registration is coming to an end, the client can get a loan without collateral for the minimum amount. It is worth either renewing the registration, or attending to obtaining its permanent version.
Required documents
We found out what a consumer loan without collateral is at Sberbank. In fact, this is an ordinary consumer loan. And a package of documents for it also requires a standard one:
- passport (with registration mark);
- a document confirming the labor status (employment contract, extract from the work book or certificate from the employer);
- confirmation of income (in the form of tax).
Salary and pension clients will only need a passport. Although they, like all other persons, can provide the bank with additional evidence of their solvency:
- confirmation of additional income;
- certificates of bank accounts and deposits;
- property certificates;
- international passport with travel notes for the last six months, etc.
Such papers can help you get more borrowed funds.
Registration procedure
For the second option, you will need to register with the Sberbank web bank. As a rule, cardholders of this bank already have it, or it is quite easy to issue it. After logging in, the following steps will be required:
The Credit Commission reviews the questionnaires within two working days. As a result, the client receives an SMS with a solution. If it is positive, the money will be credited to the account of the bank card specified by the borrower in the questionnaire. Naturally, if the client does not have a Sberbank card, it will need to be obtained. To do this, you will have to visit the office again and sign the relevant documents.
Pros and cons of unsecured loans
Like any loan product, a Sber loan without collateral has its advantages and disadvantages. Moreover, in some cases, this program may be more beneficial for the borrower than for the lender.
For bank
The main disadvantage of loans without collateral for the bank is the lack of a guarantee of their return. If the client at some point stops paying the debt, Sberbank can influence him in legal ways - refer the case to collectors or go to court. But, as a rule, with small loan amounts, the amount of costs turns out to be such that it is simply unprofitable for the bank to sue the client. After the expiration of the statutory limitation period, the bank writes off the overdue debt at the expense of internal reserves, and still remains at a loss.
For the borrower
From the point of view of the borrower, the loan program we are considering has several disadvantages. This is, firstly, the inability to obtain a large loan amount by attracting additional collateral, secondly, a stricter consideration of the application, and thirdly, a high probability of being refused.
One of the advantages is the absence of risk to the client's property. For example, with mortgage debts, the borrower will quickly be evicted from the apartment. With consumer credit debts, he only risks litigation, during which the amount of the debt can be reviewed, and the mode of its payments is changed in favor of the debtor.
Who will be responsible for non-payment
In case of non-payment of the debt, the entire responsibility will fall solely on the borrower. If guarantors bear equal responsibility with secured loans, this will not happen here. It is with the main borrower that the bank will sue, and it is his accounts and property that can eventually be arrested. At the same time, the property and accounts of his family will remain intact.
conclusions
An unsecured loan is an ordinary consumer loan that is not backed by any guarantees, such as a guarantee or collateral. To date, this is the only consumer loan available to Sberbank customers. The absence of collateral forces the lender to be more strict in considering applications. For clients, this practice is not very convenient, since they can only claim the amounts that their official salary allows.
Only the client will be responsible for debts on such loans. But most often, Sberbank does not bring the case to court, especially when it comes to small amounts.
If you have already been interested in the issue of lending, then you probably heard that today a loan is provided both without collateral and with collateral. Many potential borrowers do not know what these terms mean. In fact, everything is very simple.
Collateral is a kind of guarantee that the borrower will repay the entire debt on the loan that he took from the bank. And even if it does not pay, the bank will be able to use the collateral to return its funds. The collateral is either a pledge or a guarantor. Some experts also include credit insurance here, but this is wrong, since insurance is paid out in exceptional cases. But it is much easier for a bank to obtain the same pledge - through the court.
Here's an example for you. A potential borrower goes to the bank to take out a loan, say, 1 million rubles. This is a very large amount, so the bank has every right to request collateral from the borrower. Let's say that he agrees and offers his car as collateral to a financial organization, the cost of which is, say, 1.5 million rubles. The bank is satisfied and gives the borrower the previously specified amount. And then some time passes, after which it turns out that the borrower has no money left to pay off the debt - an unforeseen event has occurred. After some time, the bank has the right to sue the borrower in order to sue the vehicle, which is pledged. The court in such cases in most cases is on the side of the bank, so the latter receives the car and puts it under the hammer. The loan debt is closed, and if excess funds remain, they are returned to the borrower. The bank gets all its funds back and doesn't have to transfer the debt for a ridiculous percentage of the total loan amount.
An unsecured loan is, you guessed it, a loan that a bank issues, roughly speaking, based on a trusting relationship with a client. Usually this is a small consumer loan, the amount of which does not exceed a couple of hundred thousand rubles. Why does the bank not require collateral? Because many potential borrowers will refuse such offers, especially since the bank located next door does not require any collateral. Yes, this is a risk for banking organizations, but they include their risks in a relatively high interest rate and additional payments.
If the borrower decides not to repay the debt, after a while the bank's security service is connected, which will remind the debtor of the debt. A few months later, the bank may go to court. Since the court will certainly be on the side of the latter, the bailiffs can seize the debtor's property to cover the debt. In other cases, who independently deal with debts.
What are the benefits of providing? Firstly, a higher loan amount, and secondly, a low interest rate. However, the responsibility also increases - in which case the bank can claim collateral, and if it comes to, the bank can force it to pay the debt of the borrower who does not pay.