Each of us had such a period in life when there was not enough money. Someone was not enough for daily purchases, someone wanted to make a large-scale purchase, which he always dreamed of and could not collect the necessary amount of money. And surely everyone was thinking about getting a loan, a loan or a loan. So what is it?
What is a loan?
A loan is a certain amount of money that was taken from a bank or other financial organization under a loan agreement or a gratuitous use agreement, but already subject to a full refund.
Such money loans are divided into three types: property loans, banking, as well as consumer. This property is often called gratuitous agreement use. A bank loan is a loan that a borrower receives from a bank. This type of loan involves paying a reward to the creditor in the form of interest for use. Also, such a loan can be consumer. A consumer loan is a type of loan. Most often it is issued when purchasing goods that will be in use by the borrower for a certain time.
Where can I get the right loan?
The most classic option to get a loan for personal needs – contact the bank. A bank loan in modern times can act as a cash loan, consumer, corporate, trust loans and funds for urgent needs. First of all, each future borrower must honestly fill out an application form, which was provided by a specialist of a banking organization.
For this questionnaire, the borrower needs a package of documents. This is mainly a passport, work book, a certificate of income received over the past 6 months and the presence of registration at the place of residence.
What should be the contract
Loan agreements are concluded only in writing.
A loan agreement is a written agreement under which one party transfers to the other party a thing for free use for a specified period with the obligations of the other party to return this thing in integrity at the end of use. The parties to the loan agreement are the lender and the borrower. The lender may be the owner of the thing, or a person who has the authority to provide property for a loan in accordance with the law.
If we are talking about a bank loan, the terms of the contract will be slightly different. Here, the loan agreement carries information on the movement of money to the borrower (in the case of a clothing loan - a series of interchangeable things), which agrees to return the funds received. The document is gaining legal force from the moment of transfer of the subject of the contract by the creditor.
Fee for using "other people's" funds
It has already been noted how a bank loan is issued. Interest is the main point of obtaining such a loan. Although it is known that you can get it without a pledge, and without guarantors, however, the interest rate will be much higher. Loan interest is a fee for the refusal of the owner of capital to use it independently and transfer his capital for current use to other persons. Loan interest plays the role of the price that the owner of the capital or other material assets receives for their use over the specified period of time. It is expressed in the annual interest rate on the loan. The interest rate is the amount of cash that is payable for the use of the annual monetary unit.
What size the percentage will have depends on: the term of the loan, the risk level of the lender, the amount of the amount provided and its security.
How to get a loan on the most favorable terms
If, nevertheless, the need for additional cash is inevitable, then how to get a loan on more favorable terms? How to save on overpaying the annual interest rate to the bank? Does it make sense to pay more?
Firstly, you can first open an account with a banking institution that has been selected for a loan. That is, the attitude of bank employees will be more loyal. Secondly, during a conversation with credit specialists of a company, it is necessary to show competence using a similar language. Thirdly, it is imperative to have in mind a plan for making money for the next few years, which will demonstrate the reliability of the borrower. Fourth, in order to easily obtain the desired loan, it is better to pay attention to small financial companies, since they are not so bureaucratized, compared with large credit organizations.
So, before you take a loan, loan or credit, you must be theoretically savvy in this matter in order to avoid unnecessary trouble and unnecessary costs. If you not only know that a loan is a loan, but also possess information about it, you can get it quickly and almost for free, saving on overpaying crazy bank interest and without wasting personal time.
