“The debt for payment is beautiful,” people said. This proverb, however, slightly disrupted the circumstances in which everything happened. According to another legend, everything was not so sad: “Abraham borrowed money from Moisha, after a while repaid the debt, lent the cow and the cow remained in favor.”
Which bank to get a loan from?
This has been the case since banks began to pursue a more loyal policy towards a wide range of citizens. Today, for a small loan, you can already go with two documents and return in cash. Or you can get a loan without leaving your home and then earn money at the nearest ATM.
Each of them provides a wide range of services to the population. In addition to obtaining a loan, citizens can place available funds on deposits and receive stable dividends. When a citizen asks which bank to take a loan from, he must first decide on the type of loan.
Types of loans
If we take the whole industry as a whole, then funding is divided into two types: target loans and non-target loans. The first group includes the significant amounts needed to purchase real estate, develop a business, or acquire other valuable assets. These loan applications are subject to somewhat exaggerated requirements.
Generally speaking, the question for the Russians is the issue of a bank to take a loan is not worth it. The reason is that most people need a second type of loan – unsuitable loans.
Consumer loans are another name of this group. Under different banking programs, types of targeted loans can be called differently: for travel, for training, for home renovation, or for purchasing less valuable assets.
Keep in mind that any financial institution that provides loans to natural or legal persons aims to earn interest rates. This means that at the stage of thinking about which banks to borrow from, the applicant should know: the amount received and the repayment amount will vary significantly.
Loans are available only to citizens with solvents. And it must be supported by documents. For these reasons, the Bank imposes several conditions:
- Presence of a permanent source of income. In addition, the total family income should be higher than the cost of living of each family member plus monthly installments for a future loan. Otherwise, they refuse.
- Securing collateral. Collateral is required for targeted loans. In the case of non-targeted loans, the guarantee may be given in the form of a guarantee or a profit and loss account.
- Credit history. If the applicant has previously received loans and was unable to repay on time, this information will be entered in a separate database. However, successfully concluded loans are also entered in this register. But it will be a positive credit history.
This is only a standard reference list. You should learn from the potential lender’s sources about what documents the bank needs for a loan in a particular case.
People need money for different purposes: to buy, repair or pay for the study. Bank proposals seek to take into account the purpose of the loan and are ready to provide the following types of financing:
- Mortgages – borrowed funds for the acquisition of real estate. The facility remains promised to the bank until the loan is fully repaid. The right to transfer ownership shall be exercised immediately. It’s very in demand.
- For business. Loan conditions on this line require a working company that is focused and has a real chance of development. It is almost impossible to persuade the bank to finance the launch because the risks are too high. Only a liquid real estate such as collateral and a small amount of application can be a serious argument.
- Consumer loans can be used for various purposes. The need for collateral depends on the amount of the loan and the personal conditions of the bank.
- Car loan – financing the purchase of a car. Attention is paid to the year of manufacture of the vehicle and its technical characteristics. The newer the car, the better the chance.
- Goods on credit. It is produced when purchasing goods in the Bank’s partner stores. The bottom line is that the second pays off with the point of sale, and the buyer pays the money partially for some time. Loan conditions on this line are very simple.