Today, installment purchases are becoming increasingly popular. This is primarily due to the convenience of this type of calculation, as well as its availability. At the moment, you can buy by installments everything from household appliances to cars and even real estate. But what is installment plan? How does it differ from standard bank loans? And what are its advantages?
On installments in a nutshell
According to the general concept, installment payment is a certain type of payment for services and goods. It provides for the calculation not immediately, but after a certain period of time. Moreover, all payments are made in parts. And the principle of accrual of these amounts is regulated by installment agreement and article 489 of the Civil Code of the Russian Federation.
What is the difference between installments and credit?
Unlike a regular bank loan, installment payment is issued on an interest-free basis, or the percentage is much lower than on a loan. In addition, it does not provide a service charge. Often a certain percentage (by installments) is already included in the price of the product itself.
Also, some companies claim the so-called percentage for risks (most often it applies only to those customers who first contact a particular store). For example, this is exactly what the Westfalika chain of shoe stores, handbags and accessories does. Customers who applied here for the first time in order to receive goods by installments can buy products in the amount of 18,000 rubles, which will be paid within 3-5 months. Moreover, the share of so-called insurance will be 3% of the total.
Unlike a loan, the installment plan is not drawn up by the bank, but directly by the seller (producer) of the goods. Accordingly, the whole procedure takes place at the point of sale at which you buy the goods. Installment in a bank is already a loan. That is, installment plan does not imply any intermediary between the seller and the buyer. Pay attention to this fact.
Like a loan, installment plan allows the buyer to make payments in installments. However, unlike bank loans. it is issued for a short period: from 1 to 10 months. Less often, the period can be extended to 1-2 years. At the same time, just like a loan, installment payment may include making a down payment. Its size is 10-50% of the total cost of the selected product or service. Installment conditions assume that you will pay the amount monthly, in equal installments.
Among other things, the loan provides for collateral. Installment does not require this, since in this case the product itself, which is registered in the store, automatically acts as a pledged item.
Finally, the procedure for obtaining a loan is quite long and complicated, it requires a positive credit history for the borrower. It is also required to provide a lot of documents. Getting installments is much easier and faster.
Where can I arrange goods by installments?
It’s not enough to know what installments are. It is necessary to obtain comprehensive information on where it can be issued. In most cases, installments can be issued directly at the point of sale. For example, it can be a supermarket, furniture store, car dealership, real estate agency, etc.
You can get installments online. For example, this is what regular or new customers of the Eldorado retail chain can do.
How to apply online installments?
A virtual installment contract or an application for it can be executed in real time. For this purpose, as a rule, you must enter the official website of the trading network and perform the following actions (their selection may vary depending on the policy of the company and the credit organization):
- study the current rules for registration of installments;
- select the items of goods covered by installments (usually there are special notes on them);
- add selected items to the basket;
- choose a method of payment and delivery (for example, card payment and pickup);
- go to the tab "Registration by installments";
- Fill in the established application template with the name of F. I. O., mobile phone number and other personal information;
- Confirm your choice by pressing the appropriate key.
Then, if your application for installments is approved by the store, the product you have chosen in the distribution network is postponed and prepared for purchase. Once it is ready, a message will arrive on your mobile phone. Additionally, this notice may contain a reminder of the execution of the contract for the passport. And at the final stage, the buyer, as a rule, arrives at the pick-up point with a passport, approaches the loan specialist and, after completing the documents, is sent to the cash desk and receives the deferred goods.
What documents are needed to apply for an installment plan?
Each seller compiles a list of documents independently. Usually installment payment provides for the execution of the contract only on the passport. Less often, to obtain this alternative type of consumer loans, representatives of trading companies require additional documents for identification. For example, it may be the original driver’s license, military ID, pension certificate or passport. In addition, some organizations need to provide other documents:
- original certificate of family composition (issued at the place of registration);
- original certificate of employment (it indicates the name of the client’s position and salary for the last 3-6 months);
- certificate of marriage or divorce.
What types of installments are?
Since you already know what installments are, it makes sense to study information about its types. In total, installments can be divided into five varieties:
- interest free;
- long term;
- short term;
- individual;
- with interest.
Interest-free installments imply the initial payment by the user of the first installment in the amount of half of the total cost of the goods. The rest of the funds under the installment agreement is paid by the buyer in about a month.
Long-term - this is the sale by installments of products or services for a long period (up to 1-2 years). Their alternative is short-term installments issued for a period of 1 month to a year. An installment plan is considered individual, the conditions of which are selected taking into account the material condition and other characteristics of the client. Installment with interest - the ability to pay in installments with interest on the remaining amount. In some cases, the promoters may use a mixed installment plan (where, for example, interest-free and individual type of loan are combined).
What can I arrange in installments today?
Currently, installments (for a year, two or less) allows you to get in the property anything you want. Most often, in this way you can purchase the following types of goods :
- household appliances;
- furniture;
- audio and video equipment;
- Computers, tablets and laptops
- cameras and telephones;
- inverters, household generators and other electrical appliances;
- dishes;
- sports equipment (for example, mats, exercise machines, equipment);
- baths, saunas, jacuzzi;
- kitchen and garden equipment;
- equipment for home, garden, office;
- clothes and accessories;
- chandeliers and curtains;
- windows and doors;
- real estate objects;
- motor transport;
- farm animals, etc.
Also, some companies in installments provide certain services (for example, installation and installation of plastic windows).
Who can get an installment plan?
You do not know what installments are, but you have never encountered it? Then you just need to find out who can claim it. An installment plan can be issued to citizens of the Russian Federation aged 23 and up to 70 years, who have a residence permit and permanent residence, work, and also receive regular income.
Sometimes sellers prefer to play it safe, and therefore offer to citizens over the maximum age - in addition to the main package of documents - to provide collateral or guarantor.
What does an installment contract contain?
As we said earlier, installment plan involves the conclusion of a contract (similar to a loan agreement). What items are included in this document and on what conditions is it concluded?
Each installment agreement contains:
- contact information of the parties (full name of the buyer, legal name and address of the organization providing goods by installments);
- subject of the contract and obligations of the parties;
- the price of goods provided in installments;
- cost of services (storage, packaging, etc.);
- responsibility of the parties;
- signatures of the parties.
You can pay by installments on the Internet, at the cash desks of banks, through terminals.