Should I take out a consumer loan?

What is consumer credit?

In our country, such a direction as consumer credit has begun to develop. This sphere is conditioned both in economic and legal terms. To meet the needs of citizens, banks offer a number of their products under the terms of a loan agreement. Even in view of the great competition in this segment, this direction is considered the most dynamically developing. Consumer credit gives the right to a citizen (ke) to dispose of the transferred funds from the Bank at their own discretion, to pay for goods and services. When choosing this type of credit, it is necessary to take into account that such a loan must be non-targeted, in order to avoid providing the Bank with certificates of purchase of a particular product.

Many banks offer different interest rates and in order to find the most profitable consumer loan, you need to spend a lot of time searching. All aspects are compared, including income certificates, the presence of a guarantor, collateral, or a down payment. When entering into a loan agreement, you should pay attention to the amount of the agreement and what it consists of, the annual interest rate, the availability of monthly Commission fees for using the loan, the maturity of the debt and the possibility of early repayment of the loan.

In order to avoid any surprises in the future, you need to read the agreement carefully. The higher the loan amount, the more requirements the Bank will put forward to the potential borrower. Of course, it is not profitable for banks to issue loans without collateral. After all, in case of non-payment of the debt, the credit institution will take ownership of the collateral, and it can be an apartment or a car. But as practice shows, there are not many people willing to risk their property, so unsecured loans are in great demand.

Usually, consumer loans are not taken for the purchase of an apartment or car. These are other forms of lending. The purchase of household appliances, furniture, payment for any services does not require a huge amount. In this case, the Bank will still ask for a minimum set of documents, such as a passport of a citizen of the Russian Federation, SNILS or INN.

But if the loan amount is already significant, they will also request a certificate of income in the form of 2-personal income tax, as well as a photocopy of the employment record. By tightening the requirements to the borrower, banks, first of all, are insured against the risk of non-payment on the loan taken. After all the references submitted, the credit institution will still consider the credit limit on an individual basis. But the borrower must also be very careful when signing the contract, since not all banks are honest with the client.

By default, they can include in the contract such items as life insurance, opening a debit card for which you have to pay, and other services, which are many. The Bank can also include a list of additional services in the loan agreement, but not actually provide them. If the borrower does not understand something in the agreement, and the loan specialist can not clearly formulate an answer to your question, it is better to take the agreement home for a detailed study or contact a lawyer to explain a particular point.

In many supermarkets, you can see the tables of credit specialists from different banks. In such places, you can immediately apply for a loan for the full cost or the missing amount of the product without leaving the store. After filling out the application, the person within a few minutes either receives approval from the Bank, or receives a refusal. If the Bank's decision is positive, the contract is executed on the spot. It is recommended that you do not rush to sign the contract, because in a hurry you may not see the clauses of such a contract that are unacceptable to the borrower.

Should I take out a consumer loan?

By analogy with such fast loans, there is such a deal as an installment plan. Installments are issued directly by the store, but then you will need to make an initial payment, which is determined by the seller. The larger the contribution, the less you will have to pay the monthly payment, since the remaining amount of debt is divided in equal parts for a certain amount of time. This type of loan is issued for a short term and varies from six to twelve months. As a rule, the price does not increase for goods offered in installments, but taking into account the fact that stores work directly with banks, in any case, the purchased item still turns out to be more expensive, since the Bank interest is initially included in this transaction.

Therefore, when taking a consumer loan, you should be aware that even with a tempting offer and a low interest rate, the borrower will still overpay a certain amount that is profitable for the credit institution, since the Bank is not a charity organization!

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