A modern understanding of the country's economy is impossible without banks and other institutions that provide financial services. Active lending is known to increase the speed of movement and the creation of new capital.
Most of the loans are consumer loans.
In this article we will consider this particular type of loan, find out the average rates, as well as the conditions for its issuance.
What kind of service is this?
Consumer loans are loans that individuals receive for personal consumption. They can be either in the form of money or in commodity form. Often, lenders are banks or credit unions.
The distinguishing features that characterize consumer loans amid commercial loans are a relatively small amount of liabilities and high interest rates.
Types of loans for the population
Before analyzing interest rates and conditions for such loans, we highlight their main types that are found and are popular in the Russian Federation:
- Consumer cash loans.
- Loans for goods and services.
- Car loans.
- Mortgages.
Each of the above types of loans is distinguished by its conditions and average interest rates prevailing in the financial services market. We will analyze each of them separately.
Cash loan
This type of consumer lending is considered the most expensive. This is due to the increased risk of loan default. In fact, banks or other financial institutions give out cash for the borrower's own needs, not knowing how he plans to spend it.
To guarantee a refund, banks offer borrowers to additionally draw up a life insurance contract. If there is no money to pay the contract immediately, then it is recommended to include it in the loan amount.
Similar products are offered at about 15-20% per annum. For example, under such a consumer loan, Sberbank offers a rate of 15.9%.
The maximum amount depends on the policy of the bank, the proposals of different financial institutions may vary significantly. Usually they offer up to 1.5 million rubles.
Is it difficult to issue?
Not everyone who wants to take a consumer loan in cash. So, if you have a bad credit history in at least one bank, then there is a high probability of automatic refusal when you enter the corresponding application in other institutions. The application review period is from 1 to 2-3 days.
If we talk about the duration of the loan, then usually set a 3-60-month period for the full repayment of the loan.
Most often there are such offers with an annuity type of payment, that is, every month it is necessary to pay the same amount, paying off the debt according to the schedule specified in the loan agreement.
You can calculate consumer credit over the Internet: almost all banks on their websites have a special online calculator.
For goods and services
Perhaps each of us was faced with the fact that when they came to the household appliance store, they immediately wanted to buy something for themselves. But few people can just go into the trading floor, choose what they liked, and immediately pay the bill.
The ruble exchange rate is gradually falling, and with it the equipment is becoming more expensive. Therefore, many are inclined to take a consumer loan on equipment, breaking the payment as long as possible in order to play it safe.
In order to facilitate this procedure, banks rent several square meters in large trading floors and place their financial adviser there, whose main task is to issue loans for goods. So right on the spot you will be able to calculate a consumer loan and talk about its conditions.
The interest rate on such loans is an order of magnitude lower than in the cash option. This happened because, firstly, the bank knows for what purpose it finances the borrower, and secondly, in case of non-payment of mandatory payments, it can confiscate the purchased goods, thereby compensating for its damage. The term of such a transaction may vary from 3 to 24 months at 15-20% per annum.
Various types of promotions are also often held, allowing you to take the goods in the so-called installment plan, which is the same loan, but under the terms of the contract the bank commission is 0% subject to certain rules.
No money for a car?
Buying a new car is always a joyful event. Indeed, for motorists their cars are not just a means of transportation, but a subject of pride, to which they are ready to devote a lot of time.
But unfortunately, a car is quite expensive if you compare the cost of a normal car with the average salary of a person living in the Russian Federation. To the aid come banks that are ready to issue a consumer loan.
Rates on loans are attractive: from 14 to 18%. The maximum loan size largely depends on the bank itself, but on average you can focus on cars worth up to 10 million rubles.
Such loans in most banks imply a mandatory down payment. Thus, they check the solvency of the client.
An application for a consumer loan to purchase a car is issued within 10 minutes. The decision will need to wait a few days. The term depends on the principles and mechanisms for verifying information, as well as issuing a verdict (in some cases this happens automatically, and in others - manually).
As an additional product, banks offer to issue CASCO and CTP insurance policies, the cost of which can be included in the loan body. Of course, it will be much more expensive, but the car and the driver’s responsibility will be fully insured against unforeseen situations that result in damage to property or health.
Mortgage
There are many different jokes on the topic “mortgage = slavery”, etc. Is this consumer credit dangerous?
The conditions of these types of loans are quite transparent and clear:
- loan term up to 20-25 years;
- annual interest rate is at the level of 10-15%;
- minimum amount from 500 thousand rubles;
- down payment of at least 10%.
Why are they so often ridiculed among the people. All because of the long loan terms, the borrower overpays large amounts of money, which is enough to buy several apartments.
That is, for ten years at a rate of 10%, you will only pay the bank an amount that will equal the value of your home by paying only one percent. So what to do? After all, the times when the state took upon itself obligations to provide apartments and houses for its citizens have long ended and we live in the age of capitalism.
Of course, the government is doing everything in its power to provide the economically vulnerable and incapable citizens with a piece of a roof over their heads, but they have been waiting in line for years. Therefore, many people prefer to issue a mortgage, having no other choice.
What is needed to get a loan?
You just need to bring your passport and identification code with you to get a consumer loan. Sberbank, like other financial institutions, may require a statement of income and other documents depending on the type of loan being issued, for example, a certificate of family composition, etc.
If the documents are in order, you have a stable income, which is enough to pay utility bills, meals, family support and interest on the loan, then most likely the application will be approved.
However, if the above conditions are met by you, you may still receive a refusal on request. In most cases, this is due to negative credit history. Very often, people withdraw money from credit cards and do not repay the loan on time.
This entails the emergence of past due debt, which begins to characterize them as unscrupulous borrowers. And immediately in the history, a corresponding check mark is set, which in the future will scare away various financial institutions that such a client will contact to get a consumer loan.
Which bank is better?
This question cannot be answered unequivocally, since everywhere there are pitfalls. The main mistake that people make when choosing a lender is to pay attention exclusively to the interest on the loan.
It is worth noting that these rates in advertising or on billboards are only a fraction of the total number of overpayments on a loan. Various fees for issuing, servicing, early repayment of a loan etc.
In order not to fall into the trick of advertising, ask the bank manager for an example of a loan agreement and carefully study it. Statistics show that only 1 person out of 10 reads the documents that he signs to the end. If you become this person, you can be sure that you will not expect unpleasant surprises.
Also pay attention to the type of bet: if it is floating, then study the conditions under which it can change. Otherwise, surprises are possible in the form of a sharp increase in interest without notice.
And banks should preferably choose state-owned or those that belong to international financial groups, as their stability and reliability are much higher than other institutions.
