Every year, various types of bank loans appear, rapidly expanding in their field. There are more and more financial offers, advertisements and posters that are luring with their low interest rates. But such loans seem attractive only because of their colorful advertising wrapper. In fact, most offers contain hidden fees, additional interest and many other conditions that may, to put it mildly, not suit the client.
The main types of lending
The types of bank loans to date can be divided, depending on the recipient, into three main ones: industrial, agricultural and consumer. Thanks to the diverse development of financial enterprises, customers were able to choose the best option for themselves. But before you take a loan, you need to study all the pros and cons of the offers available, for which you will need to consider both the main types of bank loans and additional ones.
Credit for purchases
This type of financing in the banking sector is called consumer credit. It is issued for various goods, ranging from apartments, cars, computers, mobile phones, ending even with food. Consumer loan it can be quite expensive for the client, or completely free, as in the case of registration by installments.
Installment plan
Loans to individuals can be issued either in cash or on credit cards, or for the purchase of a certain product, which is offered by installments. If the question arises as to why many banks are willing to issue interest-free loans for goods of certain stores, you will find the answer in the next sentence, since there is no secret. Everything is simple - the seller initially inflates the price of his product, then he finds a client who is ready to get a loan, and sends a request to the bank. In turn, the bank pays the amount for the goods, but at a lower cost, presented by the store specifically for such cases.
This option is optimal in terms of benefits. The client receives the goods on credit, without overpaying for it, the seller finds the buyer, and the bank acquires the client.
Interest loan for purchase
The main difference between an interest loan and an installment plan is its rate. In installments, it is completely absent. Here, the bank sets the interest rate, and the purchase of goods in this way becomes no longer so profitable. Money for purchase on credit, as well as for installments, is issued for a different period - from several months to a couple of years. This option can be called one of the most popular, since it is not always possible to find the necessary product with an interest-free loan. That is why many people are forced to overpay, using not the most advantageous offer.
Car loans
Car loans are a more specialized service than previous options. You can get such loans to individuals both for buying a new car from the passenger compartment, as well as for used vehicles. Car dealerships, like stores with household goods or electronics, offer interest-free loan. But in the case of cars, the seller no longer reduces the cost of goods for the bank, as described above, and often even the bank itself pays extra for cooperation. This is due to the fact that goods of this level have already good sales.
There is also another type of interest-free car loan. In this case, the buyer is already cooperating not with a car dealership, but with a manufacturer who provides a discount for the bank for his goods. Thus, the buyer does not overpay for the car, the bank remains in a big plus, and the manufacturer immediately receives money, bypassing the salon.
Types of bank loans with a purchase from the manufacturer are more priority than with interest-free loans through a car dealership, as in the second option there may be hidden payments to increase bank earnings.
Mortgage credit lending
Mortgage loan belongs to the category of long-term and can be issued to both individuals and legal entities. Registration of such a service is carried out on bail. In case of buying an apartment on credit, the acquired property itself may be a pledge.
Mortgage loan for building your own home is gaining more and more popularity, as many already simply do not want to live in a big and noisy city. Its design will not take much time, so that the client will immediately be able to begin construction.
It is worthwhile to understand that such a loan differs from a consumer one not only in its long term. Upon receipt of the mortgage, the client will need to report for each penny spent. And for the purchase on credit money of products not related to construction, big problems can arise at all.
A mortgage loan is the best option not only in terms of building your own country house, it can also be used to repair or erect a summer cottage and even a garage.
If preparing for repair or construction, there is a choice between mortgage and consumer loans, then the advantages of the first are obvious. Its interest rate is lower, and the terms are longer.
Required documents
Of course, obtaining a long-term loan does not mean a short list of documents. In addition to a passport, an identification code and a statement of income - standard documents that are necessary for processing almost any loan, in this case you will also need to arm yourself with a real estate appraisal report. This list is the minimum required at any bank. The specific documentation requirements are best found on the website of the financial institution where the loan is planned.
Microcredit
Types of bank loans have recently replenished with microcredit services directly on the network. This option is suitable for people who, for one reason or another, cannot use a regular bank loan. The minimum amount issued in Internet banks starts at only $ 20, but it will not be possible to exceed the limit of $ 400 with such a service. The big disadvantage of online lending is its very unfriendly interest rates compared to a classic loan.
The advantage of this feature is the simplicity of design. In order to get a loan through the Internet, you only need a copy of your passport and identification code. Uploaded documents to the online banking site are checked as soon as possible. Reconciliation of scans and disbursement of funds lasts only a few hours, and the option of refusing a loan is unlikely, of course, unless the client is on the black list. Depending on the system providing such services, money is transferred either to the borrower's card or to an online payment wallet. Most services carry out withdrawals to Payeer, Paypal and Webmoney wallets, on the website of which you can immediately receive a microloan.
Credit Cards for Shopping
Of course, today various types of bank loans have a clear leader in popularity - the credit limit on the card. To receive such a loan, it is enough to be a client of the bank. Thanks to this, a huge number of people use such a loan.For example, a student studying at a hospital for a state account, upon admission, automatically becomes a client of the bank and receives several credit cards: a payment card, to which the scholarship is transferred, and, of course, a credit card, on which there is a small amount available for withdrawal. The same thing happens in most modern firms, where salaries are accrued by bank transfer. Thus, it becomes very simple to take a small loan of up to $ 600-700.
Usually, for the use of credit cards and timely refunds, many banks automatically increase the available limit when they notice that the client is actively using the service. This type of loan has its own big plus - the funds withdrawn or used on a credit card can be repaid without interest for a month by simply replenishing it at the bank's cash desks or its payment terminals. In the event that the loan was not repaid in a timely manner, a penalty is charged - a penalty for delayed repayment. This option is more suitable for small purchases, so to speak, up to a salary.
