Consumer loan. What it is? What is consumer credit and retail lending?
Consumer loans are a common service, the activities of which are regulated by law. It is more convenient for the client to manage funds at his own discretion
There are also targeted loans: in this case there is a line about the purpose of receiving the loan. It’s easier to get a consumer loan: it’s more difficult to get a mortgage and a car loan.
Definition of the concept
A consumer loan is an agreement with an individual that obliges the bank to issue the citizen a certain amount of money. This is stated in more detail in the Federal Law (Federal Law of December 21, 2013 N 353-FZ “On consumer credit (loan)”).
The funds can be used to pay for studies and treatment. You can make repairs, go on vacation. Hence the name of the service - consumer lending, since the client is given the opportunity to consume.
It is important to know: now funds are issued not only in banks. Loans are issued in hardware stores and even in travel agencies.
MFOs (microfinance organizations) are opening. Microloans are issued here - quick consumer loans. But microloans are different from real loans. Read more about them below.
Kinds
Loans are divided according to terms, purpose, speed of receipt. Loans are:
- targeted. Consumer loans, but have a purpose for which the money issued is used. Banks have special programs: you can get a loan for vacation, education, repairs;
- non-targeted. You can pay with funds at your own discretion, for example, to cover other people’s debts, to purchase household appliances;
- fast. When money is needed immediately, express loans help out. They are usually issued in stores when the client urgently needs to purchase household appliances or electronics. It is enough to take a passport, but sometimes they ask for a second document.
Bank websites have online calculators for calculating not only monthly payments, but also overpayments.
Differences in consumer lending
A consumer loan differs from a mortgage or car loan:
- From the mortgage. The terms of a consumer loan are more comfortable than a mortgage. In the first case, the borrower does not need to provide collateral. Since housing requires high financial costs, it will take a long time to pay off the mortgage, up to 30 years. With the consumer one it’s easier: the amount and term are smaller. But the benefits received cannot be compared with a new apartment.
- From a car loan. It is not necessary to take out a targeted loan for a car; you can spend it on a car and consumer funds. The main difference is that it is not necessary to take out transport insurance: everything is at the request of the borrower.
Simplified version of the loan
A simplified version of a consumer loan is a microloan. Such consumer loans are issued not only in banks, but also in MFOs (microfinance organizations).
A microloan has a number of differences from a standard loan:
- microloan processing is faster. The client does not need to collect income certificates, take documents from the place of work, call guarantors, or pledge property. Only a passport is required, less often an additional document;
- sum. MFOs issue small amounts - up to 800,000 rubles. But more often, borrowers take out smaller loans - a maximum of 300,000 rubles. The amount of a regular consumer loan can be more than 1,500,000 rubles;
- simplicity. Urgency and speed are the main advantages of a loan.
The disadvantage of a microloan is the high interest rate, so you need to calculate the amount of payments in advance.
How to take
Nowadays the registration procedure has been simplified thanks to the Internet. This is especially true for microloans.
Many companies allow you to apply for a personal loan online. To do this, you just need to select a suitable offer, make calculations, and find out the amount of payments.
Then you need to fill out a form indicating the borrower’s contacts, personal data, amount, and official monthly income.
Please note: online applications are processed quickly: a decision is made within an hour or two. Money can be transferred either to a card or to an electronic wallet. The disadvantage is a possible delay in transfers.
During the registration process, you need to check with the employee whether it is possible to control the debt online. Consumer loans take longer to process.
If you need to buy household appliances on credit, you need to contact a bank representative in the store. At branches of banking institutions, the process may be delayed due to queues.
To save the borrower’s time, banks began to offer preliminary applications. This can be done via the Internet. The completed application is reviewed, after which the client is invited to an interview to discuss individual details. Afterwards the contract is signed.
The borrower needs to provide a package of documents: certificates from work, place of residence, income, passport. If necessary, call a guarantor. But most modern banks no longer require a guarantor or collateral: a consumer loan can be issued to one borrower.
Once the agreement is signed, the borrower receives the funds. They can also be transferred to a card or electronic wallet. The difficult part: making payments. You can repay the loan in equal payments, or you can repay it early.
You should know: consumer loans are the most common type of lending.
People are attracted by the simplicity of the design and the opportunity to use money for their intended purpose. But you need to think it over, since non-payment threatens to result in fines.
How to take out a personal loan, see the tips in the following video:
What is a consumer loan? Why is it needed and what types does it come in? How is it issued and redeemed? What documents will be required to complete the transaction? How to correctly determine the full cost of a loan? What are the features of obtaining a consumer loan at Sberbank? These and other questions are answered in the article.
In what situations is it used?
Consumer credit practically does not limit a person’s possibilities. It is used if:
- Temporary financial difficulties have arisen. At the same time, there is confidence that the situation will improve as soon as possible. Perhaps the person receives piecework wages and his work is subject to seasonal fluctuations. Or works on a rotational basis.
- You need to buy something: a phone, household appliances. Or maybe a car or even an apartment.
- You need to pay for treatment.
- Repairs need to be made.
- I want to go on vacation.
- Need money for training.
- A friend or relative asks you to borrow money from the bank for him. When agreeing to this option, you should honestly answer three questions to yourself: “Am I ready to pay a friend’s loan if he doesn’t pay? How much of my income will I have to give away? How will this affect my lifestyle?”
Pros and cons of buying goods on credit
Pros:
- the opportunity to have the desired thing immediately, and not wait until the money accumulates;
- protection against price increases;
In November 2016, a Chery car cost 724 thousand rubles, and in October 2017 – 850 thousand rubles. (according to the analytical agency “Autostat”). Over 11 months, the price increased by 17.4%. The interest rate on car loans in 2017 was set by banks at 5.5%, for consumer loans at 12%. For a creditworthy borrower applying for a minimum or close to it rate, it is more profitable to buy on credit than to save.
- the opportunity to buy a limited edition product that will later be out of stock;
For its 170th anniversary, Sberbank issued coins made of 999-carat gold “Sberbank 170 years”. The circulation was only 75 pieces. A collector who wanted to get a coin had to quickly find money or get a loan. Currently, the coin can only be purchased at auctions.
- stretching the payment over time: when buying with your own money, you have to pay the entire amount at once. Sometimes quite impressive. When buying on credit, you pay in installments over a certain period of time.
- the ability to purchase at a minimum price (for example, on a promotion or on sale).
Flaws:
- presence of overpayment (interest, insurance, commission);
For an iPhone 8 in Eldorado you will have to pay RUB 52,990 in cash. When purchasing on credit for 12 months, issued through Home Credit, you will pay 63,564 rubles. (10,574 overpayment). And for a period of 2 years – 74,425 rubles. (overpayment 21,432)
- disappointment in making a spontaneous purchase and the need to pay for it for a long time;
- excessive increase in the credit burden on the family budget (the part of the income that goes towards loan payments);
- difficulties with, if you are late on your loan payment or temporarily cannot repay it according to the payment schedule;
- incorrectly calculating your financial capabilities. you can get into “credit bondage”, from which it is then difficult to get out;
- If you show indiscipline, take out a small loan for something not very important and allow a delay, then, having ruined your credit history, you will not be able to subsequently take out a loan for something more important, for example, an apartment in .
Types of consumer credit
Banks offer various consumer loans to the population:
- targeted and non-targeted;
- with and without security;
- with classic and accelerated delivery schemes;
- in rubles and foreign currency.
Let's take a closer look at the most interesting options.
Target
The loan amount depends not only on the borrower’s creditworthiness (the ability to pay in full and on time), but also on the cost of the purchased product or service.
The purpose of the loan is usually indicated in the title. For example, an educational loan, a loan for repairs or.
The target programs are car loans. Their main difference from consumer loans is that an apartment or car purchased on credit is secured as collateral. The conditions for such programs are usually more attractive for borrowers because banks have less risk. If you cannot repay the loan, the bank will simply take the purchased property or car, sell it at auction and return your money.
It is necessary to distinguish a mortgage from a targeted consumer loan secured by real estate. With a mortgage, the property being purchased is secured as collateral. With a consumer loan, a pledge is issued on an existing property.
Separately on the list of targets is trade credit. It is issued at the point of sale for the purchase of a specific product. At the same time, banks use a simplified and accelerated (sometimes up to half an hour) procedure for reviewing a loan application. But the cost, or overpayment, of such a loan is higher relative to a non-targeted loan.
Targeted loan funds are not issued in person. Usually the bank transfers them immediately to the seller’s account, and you receive the goods immediately after the loan is approved.
Non-target
A non-targeted loan is also known as a cash loan. This is its key difference from a targeted loan. When you apply for a non-targeted loan, the bank hands you the required amount at the cash desk, which you spend at your own discretion.
In some cases, banks will issue you a debit card (Visa or MasterCard) with the loan amount credited to it, which you can immediately cash out at an ATM without interest.
Note! We are talking about a non-targeted loan, which for convenience is issued on a debit card. Do not confuse such loans with credit cards, where the bank may charge you interest for cashing out money.
The bank does not require confirmation of the use of non-targeted loan funds and does not check what they were spent on. However, when applying for a loan, the bank manager will definitely ask you what you are taking out the loan for.
The bank, and through it, the loan officer, does not care where the money is spent. They are only interested in the issue of timely repayment. And if the borrower clearly knows why he needs the money, this increases his status and the likelihood of repayment. And if, instead of answering a question, the client begins to fidget or wink at someone, he may be refused.
In this case, the inspector may decide that the loan is being taken out for a third party and will make a corresponding note in the program. A loan obtained not for oneself, but for someone else, is always associated with increased risk. Therefore, the likelihood of failure increases.
Credit cards, like consumer loans, are issued to pay for goods and services. Therefore, they are a type of consumer loans. But the design of the card and the terms of lending on it are noticeably different from other credit programs.
Firstly, a credit limit (maximum loan amount) is set on the card, which is usually less than on a consumer loan. It is individual for each borrower, most often it is 3 – 5 times the average monthly income. The client can use up the credit limit one or more times.
Secondly, the card has an expiration date. Usually 1-3 years. During the validity period of the card, the borrower can use the bank's credit funds an unlimited number of times. As soon as the borrower returns the money previously spent from the card, the limit will be restored. After which you can use borrowed funds again.
Third, the borrower chooses the card loan repayment scheme himself. You can repay the entire debt at once or in parts: large or small. The main thing is not less than the minimum payment. The minimum payment is usually 10% of the debt plus accrued interest. Paying the loan with minimum payments significantly increases the overpayment.
Fourth, there is a fee for using the loan. Crediting by card is an expensive proposition. For example, a consumer loan from Sberbank can be obtained at a rate of 12 – 19.9%, and a card loan at 21 – 27.9%. The price is higher, but this is one of the best deals on cards.
UBRD on the VISA “Maximum” credit card sets rates from 32 to 39% with confirmation of income and from 45 to 55% without confirmation.
Interest is not the only expense on the card. Banks charge an annual fee, but not all. Renaissance Credit Bank does not charge a fee for servicing credit cards. Servicing a Tinkoff Platinum credit card will cost 590 rubles/year; at Alfa-Bank for a credit card with a 100-day interest-free lending period and free cash withdrawals you will be charged 1190 rubles/year.
Banks also charge a fee for cashing out funds. For example, Sberbank 3% (but not less than 390 rubles). This is for your own cards, for others it’s more expensive. It becomes unprofitable to withdraw a small amount.
For example, we want to withdraw 100 rubles, we will receive it in our hands and pay a commission of 390 rubles to the bank. We won’t even pay, it’s a credit card, it will be a debt to the bank, on which interest is charged.
But the cards also have nice bonuses:
- Fast processing (often within 2 hours).
- No commission when paying for purchases.
- Grace period. It is usually 2 months. If the client used the card and spent bank funds, returning during the grace period exempts from paying interest. It is important to note that the grace period does not apply to cash withdrawals.
- . This is when part of the funds spent is returned to your card as a bonus, usually from 1% to 5%.
A separate case of card lending is debit cards with overdraft. An overdraft is a credit to a client's account. That is, the client uses his funds on the card account, and if they are insufficient, the bank’s funds.
An overdraft is often issued for salary clients. The credit limit is usually equal to the borrower's average monthly salary minus taxes and other mandatory payments. Sometimes two.
With an overdraft, the debt to the bank is repaid automatically. Immediately as soon as the funds arrive in the account. Repayment of debt involves the renewal of the limit.
For example, Elena receives a salary of 20,000 rubles. monthly with crediting to a bank card. Elena entered into an overdraft agreement with the bank with a limit of 20,000 rubles. This means that after receiving your salary, you can make purchases in the amount of 40,000 rubles. (20,000 of your own and 20,000 on credit). As soon as the next salary hits the card account, the bank will automatically write it off to pay off the overdraft. But at the same time a new limit will be opened. 20,000 rub. can be spent again at the bank's expense.
An overdraft on a salary card is attractive for a bank with minimal risk. After all, the next salary pays off the debt. Therefore, such a loan is usually inexpensive.
Express loan (microloan)
Express loan, or microloan, is the general name for loans with a simplified borrower assessment scheme and a minimum set of documents. Often even without proof of income. Such loans are issued by Microfinance Institutions (MFOs)
The amounts and terms of such loans are usually small, the rates are high. This is due to an increased risk of non-refund, especially in the case of unconfirmed income.
Microfinance organizations offer express loans as an alternative to consumer loans. MFO clients are usually those with a bad credit history who are not given loans from banks
The interest rate on microloans is several times higher than the bank rate:
Organization | Maximum amount, thousand rubles. | Rate per day, % | Annual rate, % |
E – cabbage | 30 000 | From 1.9 | n/a |
LIME | 100 000 | From 0.77 | Up to 795.7 |
Turboloan | 15 000 | From 2.17 | 792,05 |
Zaimer | 30 000 | 0,63-2,17% | 229% to 792.05% |
Kredito 24 | 30 000 | 1,9 | n/a |
MigCredit | 100 000 | from 0.27% to 0.98% | up to 358.404% |
MoneyMan | 70 000 | 0,76 – 1,85 | n/a |
The annual rates are quite realistic, although they look scary. Take Turboloan, for example, the rate of 2.17 per day corresponds to 792.05 per year (2.17% * 365 days = 792.05%).
Hidden fees and full cost of the loan
When choosing a loan, we look at the interest rate. And it is not the only indicator that determines the amount of the final overpayment. What else increases the cost of a loan?
Fees for opening and maintaining a loan account. They are illegal. Large banks usually do not charge fees. But situations are different.
Having received a loan with fees, they can later be returned through the court. To avoid legal red tape, it is better to clarify this issue in advance. Organizations establishing commissions are aware of their illegality. But they also know that not every borrower will take the case to court and return the money they paid in vain. Those who do not go to court are enough for the organization to win.
In addition to the commission, other additions to the loan price are possible. The indicator “” (PSK) takes them into account and makes it possible to correctly compare different loans.
PSK is calculated in accordance with the law “On consumer credit (loan)”. The calculation takes into account the principal debt with interest and other payments under the contract. As well as fees for a bank card and insurance.
There are no payments within the PSC that cannot be predicted in advance. For example, a late fee.
The formula for determining the PSC is given in Article 6 of the law, but is difficult to calculate independently. For an already issued loan, the PSC value can be seen on the first sheet of the agreement.
As a rule, such information is needed at the selection stage, when there is no talk of concluding a contract yet. Where can I find out the full cost in this case? On the lender's website. In transcripts and explanations of the terms of the loan. Unfortunately, not all banking organizations publish this information, which will complicate the process of selecting the most profitable loan.
Important. In most cases, banks do not indicate a fixed rate for a loan offer, but a range of rates. That is, not 25%, but from 19 to 27%. Therefore, there will be a range of PSC indicators. The rate is determined individually for each borrower, and the borrower will see the final (personal) PSC only in the contract.
Loan insurance
Insurance accompanies many loans, although it is not always mandatory.
Why is insurance taken out?
Not all loans are repaid by borrowers on time or at all. Overdue debt of the population with a delay in payment of more than 90 days for 9 months of 2017 reached 959 billion rubles, or 8.5% of the amount of loans. This is a high value. And the bank’s desire to protect itself is completely justified.
Click to enlarge image
The problem of overdue debt is associated with various reasons: from the deterioration of the borrower’s financial condition to fraud. Insurance gives the bank the opportunity to receive compensation for the loan in case of non-repayment or delay in repayment.
Borrowers sometimes have a negative attitude towards insurance and try to avoid it by any means. The absence of insurance makes the loan economical. But insurance can benefit the borrower. And in the event of an insured event, it will protect you from bank debts.
Types of insurance for consumer loans
1 Life, health and disability insurance. The bank most often imposes this insurance. Especially if there is no security in the transaction. The insured amount is usually equal to the loan debt. This type of insurance is not mandatory. But the bank has the right to increase the interest rate if the client refuses the imposed service.
2 Insurance of property pledged. Mandatory type of insurance. Present in mortgages, car loans, and non-targeted loans with collateral.
3 Mortgage insurance. The Law “On Mortgage” provides for three types of insurance: collateral, borrower's liability and lender's risk.
4 Credit risk insurance. The client is usually not aware of this insurance. The bank itself is the insurer and pays insurance premiums. Usually, not one loan is insured, but several at once (a portfolio of loans). And if the level of non-return exceeds the established value, the insurance company will cover the losses. For example, the threshold for overdue debt is set at 3%. If overdue loans become more, say 4%. The amount of delays is compensated by the insurance company.
Although the bank is the premium payer, the cost of the insurance is ultimately passed on to the borrower. It will be taken into account when determining the loan rate.
The types of insurance considered may be present in credit transactions separately or in combinations.
Is it possible to refuse insurance and how to do it?
You cannot refuse compulsory insurance. In other situations, the borrower makes the decision independently.
How is a consumer loan repaid?
Repayment is carried out by annuity or differentiated payments. An annuity payment means equal contributions to the bank. Differentiated involves unequal payments. Each subsequent payment is less than the previous one due to a decrease in interest.
For example, with a loan amount of 120 thousand rubles. with repayment for 12 months in the annuity scheme, you will have to pay the bank the same amount of 11,116 rubles every month. And with a differentiated scheme, the amount of the first payment will be 12,000, then gradually decreasing, in the last it will be 10,167 rubles.
Index | Annuity repayment | Differentiated repayment | |
Amount of credit | 120 thousand rubles. | ||
Credit term | 12 months | ||
Interest rate | 20% | ||
Loan payments, rub. | 1 | 11 116,14 | 12 000,00 |
2 | 11 116,14 | 11 833,33 | |
3 | 11 116,14 | 11 666,67 | |
4 | 11 116,14 | 11 500,00 | |
5 | 11 116,14 | 11 333,33 | |
6 | 11 116,14 | 11 166,67 | |
7 | 11 116,14 | 11 000,00 | |
8 | 11 116,14 | 10 833,33 | |
9 | 11 116,14 | 10 667,67 | |
10 | 11 116,14 | 10 500,00 | |
11 | 11 116,14 | 10 333,33 | |
12 | 11 116,14 | 10 166,67 | |
Total loan, rub. | 133 393,69 | 133 000,00 | |
Overpayment of interest, rub. | 13 393,69 | 13 000 |
With differentiated payments, the debt is repaid faster and you will have to pay less interest, but banks rarely offer this option. The annuity scheme is more profitable for them.
You can choose a consumer loan repayment scheme at Rosselkhozbank.
How to pay
You can pay off your loan in different ways:
- at the bank's cash desk;
- at an ATM or terminal of a lender bank or third-party banks;
- through Internet banking systems (for example, Sberbank - online) or mobile banking;
- postal transfer;
- through electronic payment systems;
- through communication shops.
In some cases a fee is charged. It is better to clarify this question in advance. For example, when paying through an ATM at the lender's bank, there is usually no fee. And when using a third-party ATM within 2%. When paying through communication shops, the commission is usually 1%, but not less than a certain amount (50-100 rubles). Payment services may charge higher fees.
Important. Each payment towards the debt is confirmed by a receipt. You should keep these receipts, as well as statements and certificates confirming transactions with the bank. If problems arise, they may come in handy.
Payment time
An appendix to the loan agreement is a payment schedule. Based on the dates and amounts of this document, you need to make payments.
Late loan payment. What to do?
Late payment occurs for various reasons:
1 Financial capabilities have deteriorated.
2 Money was credited to the account late. Usually the money is credited to the account within 2 business days, rarely more. This rule should be taken into account. Especially in payments due at the end of the week or on the eve of holidays.
A case from one's life
On the day of payment, Dmitry deposited through his bank’s ATM the amount necessary to make the current payment in the amount of 11,500 rubles. But the money was credited to the account only after 2 days. During these 2 days, the bank charged a fine of 12.6 rubles. Since the principal debt is written off last (first the debt of previous periods, then fines, then the interest of the current period and only then the principal debt), there was not enough money.
There was an overdue debt on the principal debt in the amount of 12.6 rubles. For 30 days (the time until the next payment), interest and fines in the amount of 40 kopecks were accrued. Overdue debt increased to 13 rubles. If Dmitry does not take this amount into account in the next payment, his overdue debt will continue to grow.
Large banks usually notify customers about the problem. But it happens that the creditor plays silent and then sues.
In this example, the amount is insignificant, but if we are talking about a microloan, where interest reaches 800% per year, the situation becomes unpleasant. In addition, late payment will worsen the borrower's credit history.
To avoid problems, you need to control the flow of funds into your account. And demand from the creditor information about the balance of debt and repayment dates. You can do this once a month for free.
And more good news. The law limits the lender's ability to set the penalty to a maximum of 20% per annum.
Early repayment
Early repayment is possible in full or in part. For such repayment, the borrower must notify the bank in advance (30 days, sometimes less) (write an application). Partial repayment is possible only on the date of the next payment. The full amount is discussed separately.
In case of early repayment, interest is paid for the actual period of use of the funds. In some cases, a commission may be charged.
A case from one's life
Oleg repaid his debt to Renaissance-Credit Bank ahead of schedule. On the repayment day, he previously discussed the issue with a specialist from the bank’s credit department and asked to name the exact amount to be repaid. A friendly girl (a specialist) spent a long time counting on a calculator, counting twice for accuracy. I wrote the amount in pencil on a piece of paper. She didn’t provide the document - she asked to come back in a couple of days. Oleg deposited the specified amount through an ATM. Since Oleg is a competent borrower, a few days later he visited the bank again to obtain a certificate of debt closure. It turned out that it was necessary to pay an additional small amount. This is due to the fact that the funds were not transferred to the account immediately (although the ATM of this bank was used). Oleg made an additional payment and received a certificate of no debt.
Each bank and each program may have different borrower requirements. But analysis of data from different organizations allows us to highlight the main ones:
1 Citizenship of the Russian Federation.
2 Residence (registration) in the region where the lender is present. In some cases, temporary registration is allowed.
3 Age restrictions. The loan is issued to persons over 21 years of age (sometimes over 18 or 25 years of age). The loan must be repaid in full by age 65 (sometimes by age 75).
4 Employment requirements. It must be official, with 6 months of experience in the last place (sometimes 3).
5 Good credit history. Although sometimes they give it with a bad one. But at the same time the price increases.
A case from one's life
Lyudmila took out a bank loan back in the 90s. She had difficulties with the return and had problems with the bank. And then . And Lyudmila happily forgot about it. This situation came up recently when a woman decided to take out a loan from a bank. The bank refused her. And the second bank, and the third. Lyudmila turned out to be persistent; she submitted applications to 11 banks. And she received 11 refusals. In one of the banks she met an old friend of hers and asked her to explain the reason for the refusal. A friend rang Lyudmila on the computer. Next to her last name was the word “Scammer.” This is how the situation 20 years ago responded. But back then there weren’t even credit histories. By the way, Lyudmila finally found where to get money, albeit from a microfinance organization. And the deal price was much higher than she had originally planned.
6 Amount of income and availability of outstanding loans at the time of contacting the bank.
The size of your income affects the loan amount. If loan payments take away more than half of your income, the bank will definitely make a negative decision. If less than half, the probability of receiving increases. Different banks may have different thresholds for the ratio of loan payments to income. More often it is in the range of 30-40%.
For example. Tamara applies for a loan in the amount of 160 thousand rubles. for a period of 2 years. The rate is 19.5%. The repayment scheme is annuity. With this option, the monthly payment will be 8,104 rubles.
Tamara's monthly income is 38,000 rubles. The payment will take 21% of the income. In this case, the bank will approve the transaction.
If the income is less, say 12,000 rubles, then the payment already accounts for 67.5%, and this is a clear refusal.
The situation is aggravated by the availability of available loans. Suppose Tamara is already paying off one loan, for which she spends 7,000 rubles monthly. Option with an income of 12,000 rubles. We don't even consider it.
What happens with an income of 38,000 rubles? The total amount of payments (the new bank will definitely count it) will be 15,104 rubles, which is 39.7% of income. The likelihood of approval decreases. Not every bank will approve such a loan.
Tamara decided to increase the likelihood of approval and hid the fact that she had a second loan. More precisely, she didn’t just hide it, she gave false information. When applying for a loan, you must always indicate the availability of other loans.
In this case, Tamara ruined her chances of getting a loan. The bank will quickly check this information and refuse the transaction, deeming the applicant unreliable. A good client will not lie.
Package of documents required for registration
The list of documents may vary depending on the lender and borrowing option. Small amounts are easier to obtain than large ones. As the amount increases, the number of documents also increases.
For a non-target consumer loan you will need:
1 Passport. Sometimes additionally: license, international passport, pension, pass.
2 Document on income.
3 Employment document. For example, a copy of the work document.
4 Military ID for men.
5 A package of documents for the guarantor (the same as for the borrower), if it is provided for under the agreement.
6 Documents for collateral in secured lending.
With express lending, the list is noticeably reduced. Sometimes just a passport and one more document are enough. Income is not always required to be verified.
Interest rates and lending conditions in various banks
10 largest creditors of individuals as of 10/01/2017:
Conditions of the largest players in the consumer market.
The terms of a specific loan depend not only on the bank, but also on the borrower’s income, the chosen program and other parameters.
Sberbank is the undisputed leader among Russian banks. It consistently occupies the top position in the credit rating.
It accounts for 46% of household deposits, 38.7% of loans to individuals and 32.2% of loans to legal entities.
Terms of consumer loans at Sberbank
Type of loan | Duration, years | Sum | Bid, % | PSK, % | Security option |
For any purpose | up to 20 | 500 thousand – 10 million rubles. (up to 60% of the value of the collateral) | 12 – 12,5 | – | real estate pledge |
Consumer with guarantee | up to 5 | 30 thousand – 5 million rubles. | 12,9 – 19,9 | 12,51 – 19,94 | guarantee of an individual (up to 2 guarantors) |
Consumer Unsecured | up to 5 | 30 thousand – 3 million rubles. | 12,9 – 19,9 | 12,51- 20,94 | absent |
Consumer loan for loan refinancing (combines up to 5 loans) | up to 5 | 30 thousand – 3 million rubles. | 13,5 | 13,48 – 14,93 | absent |
Consumer loan for military personnel - NIS participants | up to 5 | up to 1 million rubles | 13,5 – 14,5 | 13,1 – 14,53 | without or with guarantee |
Loan to individuals running personal subsidiary plots | up to 5 | Up to 1.5 million rubles. | 17 | – | guarantee of an individual |
Sberbank has 6 consumer programs. Loans have a term of up to 5 years, except for the “For Any Purpose” program, where the term is up to 20 years, but a real estate pledge is required. The interest rate for this program is the lowest: 12% for persons receiving a salary or pension into an account with Sberbank and 12.5% for others. In addition, this option provides for life and health insurance of the borrower (in other cases this is not available). If you refuse insurance, the rate increases by 1 point.
For other loan product options, collateral is not required or a guarantee is provided. Loans with a guarantee are issued at a lower interest rate and in a larger amount.
The table shows only the main parameters of loans; other conditions are similar for different loan programs. These include:
- annuity repayment scheme (equal contributions to the bank);
- Application review period is up to 2 days (for a loan secured by real estate up to 8 days);
- in most cases, the rate is lower for persons receiving a salary or pension into a bank account;
- no additional fees;
- there is no fee for early repayment;
- Late fees in most cases are 20% per annum.
Let's consider card lending options at Sberbank.
Interest rates on the card are higher than regular consumer loans, and in most cases there is an annual maintenance fee. All cards are issued for three years and have a grace period of up to 50 days. Repayment of the loan within this period will exempt you from paying interest.
The card lending mechanism involves setting a credit limit - the maximum amount of funds that can be spent on the card. When you replenish the card (repay the loan), the limit is renewed.
Example: Anna's credit limit on the card is 12 thousand rubles. She spent 3 thousand rubles on purchases using the card. As a result, its limit was reduced to 9 thousand rubles. – Anna will be able to spend the remaining amount. If Anna tops up her card with 3 thousand rubles within 50 days, she will not need to pay interest. Its limit will be restored - it will be restored when replenishing after the grace period expires.
There is a bonus system for Sberbank cards. For Aeroflot category cards there is a system for accumulating miles.
Requirements for borrowers at Sberbank
- By age: over 21 years old when receiving a loan (in the program with a guarantee from 18 years old).
- When repaying a debt - under 65 years of age (75 years in secured programs).
- Experience requirements: from 6 months. at the last place of work and a year in the last 5 years. For salary clients, these requirements are reduced by 2 times.
- Registration at the location of the bank branch.
List of documents in Sberbank
- Statement.
- Passport.
- Documents confirming income and employment.
- If a guarantor is provided, you will need his passport and documents on his financial status.
- If lending requires collateral, collateral documents are needed. The list differs for different types of collateral, so the information is clarified with the bank.
How to get a loan from Sberbank?
1 First you need to familiarize yourself with the list and conditions of bank loan offers. It can be done:
- by consultation in the office;
- on the bank’s official website in the consumer loans section;
- by calling the hotline;
- through the feedback system on the official website.
2 Prepare a package of documents required for the selected loan option.
3 To obtain a loan, you must personally contact a bank branch. If you have a connection to the Sberbank system, you can submit an online application remotely.
4 Wait for the bank to make a decision (usually within 2 days).
5 Get money. The bank undertakes to provide them within 30 days of loan approval. Funds are credited to the card account issued at Sberbank.
Advantages of lending at Sberbank
- Reliability and reputation of the bank. The client can be sure that there will be no fraud on the part of the bank.
- The terms of the loans are transparent, there are no hidden fees.
- Low rates.
- Possibility of increasing the loan amount at the expense of co-borrowers.
- Availability of a loan calculator on the official website, where you can make preliminary calculations.
- Possibility of completing an online application.
- Special conditions and quick decision-making (up to 2 hours) for payroll clients.
What to look for when choosing a loan?
- The annual interest rate.
- Loan currency. To reduce the risk, you should take out a loan in the currency in which the income was received.
- The need for insurance.
- Availability of collateral. Secured loans are cheaper.
- Availability of a salary card. In order to save money, it is better to take out a loan from a salary bank.
- Possibility of designing a target program (often cheaper).
- The amount of income and the method of confirming it.
- Repayment scheme: equal payments or not.
Features of the contract
Mikhail Mamuta, head of the Consumer Rights Protection Service, notes a large number of complaints about the activities of banks in terms of consumer lending. He points out that 35% of complaints are related to difficulties in repaying loans, 18% with additional. services.
The main problem of borrowers, in his opinion, is inattentive reading of the contract. Or not read at all. As a result, borrowers are not aware of tariffs and do not know about commissions and fines. They lose their documents. And if they have difficulties with payment, they hide from the bank, worsening the situation for themselves.
When reading the contract, pay special attention to:
- Loan amount and terms of cash withdrawal. Are there any fees for this?
- The interest rate, features of its calculation and the full cost of the loan. In long-term loans, the agreement may provide for the possibility of increasing the interest rate.
- Dates and amounts of payments.
- Additional payments: commissions, insurance.
- A clause describing late fees. Here the bank can provide the possibility of debiting funds from accounts, including from a salary card account.
- Possibility of early loan repayment.
If you do not want to delve into everything yourself, you should consult a lawyer. This may be cheaper than many of the expenses provided for in an unfair contract.
What to do if you have difficulties repaying your loan
A correct assessment of your capabilities will help you avoid difficulties with payment. It is important to compare the amount of income with the amount of the loan.
A case from one's life
Julia is used to dressing in boutiques. All her expenses were covered by her husband. After the divorce, Yulia got a job with a salary of 35 thousand rubles. This was not enough to lead the same lifestyle. But the girl could not give up her usual way of life. She tried to visit stores less often. She had to take out a loan. And then a few more. At some point, Yulia realized that she was unable to pay off her existing debt. She had to sell the car.
Experts recommend carefully considering the issue of the need for lending. And if you need to make a purchase, and saving money is not considered an option, then at least never invest all your money in the transaction. For example, putting everything towards the down payment on a mortgage. We need to leave a legacy. He can help out during temporary difficulties.
Answers on questions
Can a guarantor take out a loan?
Yes maybe. The guarantor is considered by the bank in the same way as the borrower. If a borrower, having one loan, can get a second one, the guarantor can do the same. It is important to take into account that the income must be sufficient to cover the new loan and the previous one for which a guarantee has been issued.
What is the difference between a consumer loan and a microloan?
Microloans are issued not by banks, but by microfinance organizations. A minimum of documents will be required for registration. You can get a loan without proof of income and with a bad credit history. Time frames are short, often measured in days. The amounts are small, usually up to 30-50 thousand rubles. Well, the stakes are the highest.
Conclusion
Consumer loans are issued to citizens to meet personal needs. It can be targeted or not, secured or not. Issued according to classical and simplified schemes. Issued at a bank or at a store.
Everyone can choose a loan product according to their needs. If you choose a bank and loan wisely, collect a full package of documents and provide security, you can save a lot.
Knowing all the nuances of completing a transaction and carefully reading the loan agreement makes it possible to avoid many problems in the future.
And of course, before making a decision, you need to assess your financial capabilities.
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Candidate of Economic Sciences, Associate Professor of the Department of Economics at the Ural Social Economic Institute. I read banking disciplines. I live in Chelyabinsk, mother of two wonderful boys. I love the sea, the sun, reading, I enjoy handicrafts, and ice skating. I also like to learn something new.
Lending in the modern world is so well developed that most large purchases are made through a bank loan. Almost anyone who meets the bank’s minimum requirements can get a loan. The most common type of loan today is a consumer loan.
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What is a consumer loan?
A consumer loan is a type of bank loan provided for the purchase of goods, services and cash for various needs. The Americans were the first to develop this business, offering the population installment plans at fairly high interest rates. Then other countries picked up the idea, but only well-off people who were ready to provide certificates of income could receive a loan.
With the collapse of the USSR and the onset of default, lending almost completely disappeared, and there was no trust in borrowers. Only private organizations were willing to take risks by issuing loans at huge interest rates.
About 10 years ago, lending gained momentum again, and new banks began to appear offering loans on favorable terms.
Now, to receive a loan, many companies require only a passport, recording the rest of the information from words without documentary evidence.
Types of consumer credit
Consumer lending is divided into several types, depending on the purpose of obtaining funds, the method of financing and repayment of the loan.
Let's look at the most common types of loans, most often found in modern banks:
- For any purpose or non-targeted loan– issued in cash or by credit card. The loan is issued at the office of the banking organization after submitting the required documents. This is the most common type of lending, but not the most profitable. You can get a loan for any purpose by first filling out an application online on the bank’s website.
- For the purchase of goods or a targeted loan– issued to the borrower in commodity form. The loan is usually issued in a store, where the consumer selects the products he needs. This can be any product, but within the limits set by the bank. It is impossible to buy a product cheaper than 3,000 on credit. The targeted loan also applies to the purchase of services in various organizations (for example, payment for treatment in a clinic).
- Secured– a loan issued on the security of property or with the involvement of a guarantor. This type of loan includes car loans and mortgages. A consumer can take out a loan for a large amount of money by signing collateral documents for his property. If the loan is not repaid, the collateral becomes the property of the bank.
- Express loan is a type of loan that has a certain limit and is issued in a short period of time. The amount available for borrowing is small, but interest rates are high. Express credit is suitable for consumers who want to quickly get a loan.
- Credit card– a type of lending in which the entire loan amount is transferred to a plastic card. You can withdraw cash from it (a commission is charged for this and interest is accrued) and pay for services and goods by bank transfer. The second option is more profitable for the borrower - for a certain time no interest is charged on the funds spent.
Requirements for the borrower
Each bank has certain requirements for borrowers:
- Russian citizenship.
- Age over 18 (21.25) and under 65 (75) years.
- Official employment.
- Work experience of at least 6 months (or 1 year).
- Wages are higher than the subsistence minimum.
- No current criminal record.
- No late payments to any banks (positive credit history).
- Availability of a landline home and/or work telephone.
- Possibility to provide several phone numbers of relatives/friends/colleagues.
- Permanent residence in the city where there is a bank branch.
Many bank requirements can be circumvented, but only by receiving a small amount. Most of the information is recorded from the words of the consumer, but you should not expect loyal conditions for this. The less confidence in the borrower, the higher the interest rate.
Recently, banking organizations meticulously check each borrower for the absence of late payments. But each borrower has the right to refuse to review the credit history (not to sign a document confirming consent). But banks do not approve of this behavior and may simply refuse to issue a loan.
There is one more requirement for the borrower, which few people know about. When applying for a loan, you need to look neat and clean. If bank employees do not like the consumer’s appearance, they will indicate this point in the application form and the loan will be denied.
Package of documents required for registration
The list of documents required to apply for a consumer loan varies depending on the requirements of the bank and the type of loan. As a rule, the higher the loan amount, the more documents you will have to provide. For a loan under the express program, you only need a passport and any document of your choice (driver’s license, pension certificate, student card, pass).
If you need a loan at lower interest rates, you will have to prepare an extended package of documents:
- a certificate from your place of employment about your level of income for the last 3 or 6 months;
- a copy of the work book confirming official employment;
- military ID;
- pensioner's ID;
- property documents;
- MTPL insurance;
- international passport.
If a guarantor is involved to obtain a loan, then his documents confirming his level of income and official employment will be required.
Do you want to know, ? We have the most complete information on this issue.
Mortgages for public sector employees are a profitable way for doctors, teachers and military personnel to get housing. you can find out everything about the requirements for borrowers, interest rates and required documents.
Interest rates and lending conditions in various banks
Today, Sberbank of Russia offers the lowest interest rates on loans. You can get a loan without collateral under 18-22% per annum. If a consumer receives wages on a Sberbank deposit card, then he is entitled to very favorable lending conditions.
However, for other borrowers it is quite problematic to take out a loan or purchase expensive property through Sberbank.
A full package of documents, registration of collateral and surety will be required. But even in this case, borrowers are increasingly hearing loan refusals.
The Bank of Moscow is ready to provide a loan from 19 to 35% per annum upon receipt of a complete package of documents. Conditions are more favorable at high income levels. The Bank of Moscow is more willing to provide targeted loans for the purchase of goods and services.
The most loyal conditions in Home Credit, Rosbank, Trust and Russian Standard. Almost anyone who meets the age category and has a positive credit history can get a loan. However, the interest rate increases to 56% per annum.
The optimal balance of conditions and interest rates is offered by OTP Bank, Otkritie and Renaissance. Targeted and non-targeted loans can be obtained at 30% per annum with the provision of an average package of documents (passport and proof of income).
The interest rate depends on the age of the borrower, his marital status, the purpose and term of the loan, the amount of income and the documents that he is willing to provide to the bank.
How is a consumer loan repaid?
Loan repayment can be carried out in several ways:
- Through a payment terminal at the bank office.
- Transfer of funds from a bank card.
- By postal transfer.
- Payment through other terminals that have this function.
- Payment through electronic payment systems.
The loan must be repaid strictly on time, preferably a week before the designated date, to avoid delays. Payment may be delayed for reasons beyond the control of the bank and consumer, as well as on holidays.
If funds arrive in the account even one day later than the date specified in the agreement, the borrower is charged a fine, which he must repay before the next payment date. The bank sets the amount of the fine independently, but it rarely exceeds 1,000 rubles.
Hidden fees and effective interest rate
When receiving a loan, banks almost always charge hidden fees, which increase the amount of overpayment. Despite the promises of credit institutions about low interest rates, the consumer receives a loan at the highest rates. And the fact is that when calculating payments, hidden commissions are applied, which include insurance, payment for opening and maintaining an account, and so on.
The result is the effective interest rate, which is the rate that includes all hidden fees and additional charges. All detailed information is written down in the contract, so you must read it carefully before signing.
Are you interested in credit cards with a grace period for cash withdrawals? Home Credit Bank has a lot of tempting offers in this area. More details in.
Is it possible to take out a personal loan in cash?
A consumer cash loan is one of the types of lending in which the loan is issued in cash in cash. Some banks transfer funds to a card, which can be used to pay for services and goods.
Video: How to take out a consumer loan profitably
January 2019
Today, lending in our country is a fairly popular banking service. Credit organizations offer their clients loans for various purposes - buying a home, car, and so on. Consumer loans are in greatest demand. To choose the optimal loan program, you need to study the conditions for issuing such loans, otherwise you can end up in a debt trap. Next we will explain in detail what a consumer loan means and what is necessary to obtain it.
Definition
A consumer loan is a loan issued by a credit institution to a person to purchase something. Such a loan is provided to the client as a deferred payment for any product or service, for example, the purchase of a telephone, household appliances, the provision of paid medical care, and so on. The bank also issues a consumer loan in the form of a certain amount of money (loan), which must be repaid within the time specified by the agreement.
Types of consumer loans
Today, consumer lending is quite developed. Banks offer clients various programs where they can choose a loan based on their individual needs. Consumer loans are divided into the following types:
- By type of creditor. This item includes organizations that issue funds for various purposes: banks, pawnshops, trade, and microfinance organizations.
- By type of borrower. The item is divided into the following criteria: the loan is provided to any group of persons who are citizens of the Russian Federation, a certain group of persons (entrepreneurs), special ones (persons who regularly repay the debt and receive various bonuses from the bank for the second and subsequent loans), young families, socially vulnerable groups persons (working and non-working pensioners).
- By provision. In this case, the bank requires the borrower to provide a guarantee of return, registering movable or immovable property as collateral. Most often, consumer loans over 500 thousand rubles are secured. Loans that do not require collateral are usually small - from 10 to 500 thousand. Here, only a certificate of income is required from the borrower, but in the modern trend, banks neglect this rule and provide programs that require only an identification document from the borrower.
- According to the method of repayment. There are three main types - annuity, differentiated and one-time. Annuity implies that the amount to be repaid does not change throughout the validity of the loan agreement. In simple words, the client pays a fixed amount monthly, which includes interest, late fees (if any) and parts of the amount that are used to repay the “loan body” (the amount excluding interest and fines). Differentiated means that the total loan amount is divided into equal parts, taking into account the frequency of repayment. If you look at the schedule of such a payment, you can conclude that the borrower pays the principal and accrued interest. Interest, in turn, is calculated on the balance of the principal debt. As the client pays off the debt, the monthly payment amount decreases accordingly. A one-time payment most often occurs when a person takes out a consumer loan for personal needs from a microfinance organization. This type of payment is assigned mainly if the loan amount does not exceed 10 thousand rubles. The return date is usually 30-60 days. There are no schedules for this type of payment.
- Directionality. Based on their focus, consumer loans can be divided into targeted and non-targeted. A non-targeted loan for urgent needs is characterized by the fact that the borrower can spend the money anywhere. The bank will not check where the funds were spent. A targeted loan implies that the borrower takes money to purchase a specific product and service, for example, a car, a residential building, household appliances, payment for educational and medical services, and so on. As a rule, banks do not give money to the borrower, but transfer it to the seller’s account. If there was a cash withdrawal, you will need to provide the bank with receipts indicating that the funds were used for a specific purpose.
Conditions for obtaining a consumer loan
When applying for a loan, a banking institution must evaluate the borrower by conducting the so-called scoring (evaluating a potential client for compliance with certain parameters):
- Age restrictions. Most large banks issue loans to persons from 21 to 65 years of age. This is primarily due to the fact that a potential candidate under 21 years of age may not have the necessary income to repay the debt. In some lending institutions, the minimum age is 23 years.
- A prerequisite is that the client must be a resident of the Russian Federation.
- Having a permanent place of work. At the same time, there is a nuance - the work experience at the last job must be at least 3-6 months.
- Providing identification as well as a second document. Some banks may require a military ID for men.
- If the bank cannot make sure that the client is able to repay the debt, guarantors or co-borrowers are brought in.
It is important to understand that this list presents general conditions that allow you to apply for a loan - banks may also impose additional requirements.
Bank offers
Bank Credit Bid (%) Term Sum Sberbank Loan for any purpose 12,9 Up to 5 years Up to 3 million rubles. Post-Bank Supermail Online 9,9 Up to 5 years Up to 1.5 million rubles. VTB Cash 11 Up to 7 years Up to 5 million rubles. Sovcombank Standard Plus 11,9 Up to 3 years Up to 300 thousand rubles. Eastern Bank Express loan 11,50 Up to 3 years Up to 500 thousand rubles. Home Credit Bank Cash 10,9 Up to 5 years Up to 1 million rubles. Raiffeisenbank Cash loan 10,99 Up to 5 years Up to 2 million rubles. Gazprombank Easy loan 9,8% Up to 7 years Up to 3 million rubles. Rosselkhozbank Without collateral 10 Up to 7 years Up to 1.5 million rubles. Russian standard Cash 15 Up to 5 years Up to 2 million rubles. Information on loan programs presented in the table is current as of July 1, 2019. Interest rates indicated are minimum.
How to get a consumer loan?
To get a loan from a bank, you first need to decide on the purpose - what the funds are needed for. As a rule, a consumer loan does not require the provision of a large package of documents. Next, we will consider the algorithm for obtaining a loan:
- The first step is to decide on the choice of lender. You need to study market offers and choose the best option.
- Secondly, you need to choose a loan product with the most favorable conditions.
- Then you need to contact the bank’s credit department employee to submit an application and conduct scoring (initial assessment of the client’s reliability).
- If the bank has previously approved the application based on scoring, then the client fills out a form where you will need to indicate certain data.
- Next, a package of necessary documents is provided.
- This is followed by signing a loan agreement and receiving funds or issuing a credit card.
You can also submit an application directly on the bank’s website - many institutions provide a similar service. The application is reviewed within several days. If the decision is positive, the borrower is called to the bank to formalize and sign the agreement.
Documents and requirements
To obtain a consumer loan, you do not need a lot of documents. Next, we will consider the necessary documents for the loan, as well as general requirements for the borrower:
- First of all, you need to provide an identity document (some banks require a second document);
- income certificate in form 2-NDFL for the last 6 months;
- a copy of the work record book with confirmation of length of service at the last place of work for the last 3-6 months;
- citizenship of the Russian Federation;
- The borrower's age is 21 years or older, the age limit is usually 65 years, however, some banks have special programs, for example, for pensioners, where the age limit is expanded, and the limit can reach 85 years;
- if the amount is more than 300 thousand, some banks may require collateral or a guarantor.
What to pay attention to when concluding a contract?
When concluding a loan agreement, you should pay close attention to the following points:
- Amount and interest rate. The problem here may be a discrepancy with the lender’s advertising offer, so you should carefully study the loan agreement.
- Additional services. Most often, as a guarantee of the return of funds on a consumer loan, the bank specifies insurance in the contract. All additional conditions increase the total amount of debt, sometimes very significantly.
- Indication of the total loan amount. The loan agreement must specify the total amount of the loan. It should also indicate what parts it consists of (interest, commissions, etc.).
- Payment schedule. The repayment scheme and type of payment must be specified in the agreement. The borrower has the right to choose how it is more convenient for him to pay - the bank cannot impose its own conditions.
- Possibility of early repayment. This right is assigned to the borrower at the legislative level. The agreement should not contain any fines or other sanctions for early repayment of the loan.
- Non-repayment of borrowed funds and their collection. It is worth finding out whether this paragraph contains information about the assignment of rights in case of non-repayment, and how the bank will act in case of delay.
Video on the topic
In Russia, until 1991, the sale of goods with payment in installments was treated by banks as a consumer loan. The subsequent decline in the solvency of the population made loans irrelevant for some time. Since 1999, the development of consumer credit in Russia began. At first, loan products were intended only for the purchase of electronics and household appliances. Then their range grew and covered all major areas of consumption.
Today, according to statistics, the amounts requested for loans from Russians average from 15 to 50 thousand rubles.
The concept and essence of consumer credit
A consumer loan is a bank loan issued to citizens for the purchase in installments of any goods or consumer goods. Today, the population widely uses consumer loans not only to purchase household appliances or cell phones. Many people find it convenient to use credit funds to acquire a new or used car, furniture, and even housing.
The main essence of consumer credit is is that the bank either provides a person with the opportunity to purchase something in installments, paying the purchase price for the borrower, or gives a loan for the immediate purchase of the desired thing. In both cases, the one who used the loan will have to repay the money to the bank with interest, and considerable interest. In addition to interest on the loan, banks usually charge additional fees and charges.
Consumer loans are issued in Russia only by officially registered banks!
Advantages and disadvantages of consumer credit
Like any credit program, a consumer loan has obvious advantages and sometimes hidden disadvantages.
We list the main advantages of a consumer loan:
- You don’t need to have the entire amount of cash to purchase the things you want. Purchasing goods on credit makes it possible to pay for them gradually, over several months or years, in small amounts;
- you can buy consumer goods exactly at the moment when they are needed, without waiting for the accumulation of funds to fully pay their cost;
- you can buy products at the time of their lowest price;
- you can purchase a product of a suitable type, properties and modification at a time when it is on sale.
The main disadvantages of a consumer loan can be identified as follows:
- a significant increase in the cost of purchase due to interest on the loan program;
- the presence of additional commissions disguised by banks, which significantly increase the cost of the total credit cost;
- After the short-lived joy of a pleasant purchase, the borrower is left with the painful need to repay loan payments to the bank over a long period of time.
Main types and forms of consumer credit
There are the following types of consumer loans:
- one-time;
- renewable;
- for urgent needs;
- trustful;
- for real estate;
- for the purchase of goods;
- to use paid services;
- for pensioners;
- for young families;
- for apartment renovation;
- pawnshop
One-time loans are very popular. They are issued in a limited amount, depending on how solvent the borrower is.
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