Credit is one of the engines of the economy. With the development of trade relations and stabilization of the economy, loans are becoming more popular. Firms and ordinary citizens are more confident in the future. Banks are attracting new customers every day. There are many loan programs that I offer various companies for every taste and opportunity. Over time, firms and ordinary citizens face different problems of solutions, which is a long-term loan. The company wants to expand or modernize, a married couple wants to buy an apartment in Moscow on credit. Finance, as always, is not enough, but there is a desire and stable earnings.
Long-term loans are beneficial for the economy of the country as a whole, they stabilize the market and the economy as a whole. Banks, issuing long-term loans, bear a big risk, but also get good interest. Therefore, before issuing a loan, a thorough check should be made: payback, balance sheet, economic risk, bank risk, solvency of the borrower.
After a series of checks and verification of documents, certificates, the stage of issuing funds begins. Long-term loan funds are targeted. The procedure for obtaining a loan consists of several stages:
- Loan application considered
- Interviewing with a client
- Exploring financial opportunities
- Preparation of the contract for signing
- Monitoring the implementation of the contract by the parties
First of all, a long-term loan has several features.
Pros:
- a long maturity makes it possible to return a large amount in small installments;
- Enterprises have the opportunity to repay the debt with money that they earned as a result of buying new equipment or expanding production at the expense of credit money.
Minuses:
- a large percentage of the loan. With a long-term loan overpays a large amount, which may be equal to the amount of the loan;
- A long-term loan is a long process and, in essence, it is “bondage”.
Long-term lending for citizens, that is, individuals, is mortgage. A mortgage loan is issued according to the standard scheme.
The bank bears risks by issuing long-term loans, therefore it requires a loan security, the better the security, the lower the lending rate, but not with all banks. Do not be surprised if, when issuing a loan, the bank will require payment of 30% of the loan amount. The bank also has the right to demand insurance in the company, which it considers more reliable, as well as the participation of a third party, the guarantor. The rate is 10-20% per annum and is subject to change.
The conditions for issuing funds to firms and enterprises (legal entities) have their own specifics. The loan will definitely be approved, received if there are schemes, plans, agreements on future transactions for which money is allocated. If a loan is issued for equipment, construction of a building, then according to the contract the payment of first installments will begin from the moment the production is launched. If money is issued for other needs, then payments begin one month after receiving the loan body.
Long-term credit is becoming attractive to the state, which can stimulate the development of certain industries.
