When there is an urgent need for money, and relatives and friends can do nothing to help, the question of where it is more profitable to take a cash loan immediately arises. Which institution to choose: bank or KPC, pawnshop or MFI? A future borrower should soberly assess his strengths and advantages, because in the end, it is these criteria that will make it clear where to get a profitable cash loan.
What is a consumer loan?
A consumer loan is money that a bank or other lending institution issues to a borrower. The issued amount of money must be returned in monthly installments, with the payment of mandatory interest for the use of other people's money.
Consumer loans are divided into several categories. Now we will consider them.
By type of lender
Asking the question of where it is more profitable to take a cash loan - at a bank or at a credit and consumer cooperative, we will try to find the answer. That is, the creditor may not only be a bank.
By type of target orientation
Bank loans are divided into receiving money for the purchase of a particular product or service. This is a targeted loan, which is characterized by more favorable conditions: a reduced annual rate, flexible terms for its repayment, as well as the opportunity to receive state subsidy (take advantage of obtaining a special education loan with state support). The borrower, issuing a target loan, does not receive money in cash, they are transferred directly to the supplier of goods or services in non-cash form.
Inappropriate credit, on the other hand, involves obtaining cash, which you can use at your own discretion, and not provide the credit institution with a report on the loan funds issued to the borrower.
By type of collateral
Loans issued may be backed by collateral, such as collateral, or a bail agreement. Property (movable and immovable) may act as a pledge. If the borrower has financial circumstances, according to which he will not be able to repay the loan, the bank will take away his property, which is pledged. If there is a guarantee agreement, then when the borrower is unable to repay the loan, this obligation will be assigned to his guarantor. When providing security, the annual percentage is lower than without it.
Unsecured loans, or, in other words, unsecured loans, are issued by the bank only to that category of borrowers who have a steady income and credibility in the credit history. The amount of funds disbursed in this case is within the existing own funds of the bank, but with a higher annual rate.
By type of borrower
This category, in turn, is divided into several groups. For example, families of young people whose age does not exceed the mark of 30 years are provided with a consumer loan with state support. Such a loan can be targeted (mortgage, car loan) or universal (non-targeted).
When considering the next population group, we get the answer to the question of where it is more profitable to take a cash loan to pensioners. Consumer loans issued by the bank to pensioners are based on a stable source of income in the form of a pension. To be able to use this type of loan, it is necessary to observe a prerequisite - a pensioner-borrower must work. Obtaining a pension and having a job will allow the pensioner to receive cash on more attractive credit terms.
Trust type of loan - applicable to borrowers with a positive credit history and re-applying to the creditor bank. When re-applying to the borrower, it will be enough to go through the minimum formal procedure, after which he will immediately be provided with borrowed funds.
By type of repayment
There are two ways to repay a loan.
Standard - installment payment. It is a uniform payment amount that is paid monthly or quarterly. The amount of payment may be fixed or variable.
One-time - consists in making a one-time amount of cash on a specific date specified in the loan agreement.
According to the terms of provision
Lump sum payment - is issued to each capable borrower. This type of loan is the most popular. The Bank considers the application of each borrower individually, and the amount of issued funds is calculated on the basis of solvency.
The revolving payment, which is also revolving, consists in giving the borrower not the entire loan amount at once, but in the gradual transfer over the agreed period of time. The positive point in this case is that the borrower can be sure of receiving the amount of money that he indicated in the application.
By type of terms
Where is it more profitable to take a cash loan in Russia, given the economically unstable situation? Today, Russian banks, providing loans to the population, conditionally divide them into short-term ones, where the repayment period is less than a year, and long-term, above this mark. Short-term loans are issued for a certain period (usually not exceeding 12 months) or on demand. Then, in the absence of a fixed term for repaying the loan, the bank is entitled to demand repayment of the debt from the borrower at any time.
Getting a consumer loan at a bank
Persons who have reached the age of 18 years (or 21 years old, this threshold is set by a banking institution) and do not exceed the threshold of 70 years can apply for credit funds.
Each bank independently establishes the requirements applicable to those wishing to obtain credit funds. But there is a universal requirement for all banks - the borrower must have a stable source of income. The source of income refers to wages. Also, the borrower can inform the bank about the availability of alternative sources of income, for example, income from the rental of property (apartment, garage or other area) or dividends from securities. Such sources will need to be documented.
The documents provided are a civil passport and mandatory permanent registration in the region where the bank is located. A certificate informing the borrower of the salary and a copy of his work book will also be necessary documents for receiving money. In order to obtain a non-targeted loan, the bank may ask the borrower to provide additional documents: military ID, certificate of marriage / divorce, documents for collateral.
If the borrower falls under certain banking factors, this can significantly reduce the annual interest offered by the bank and speed up the process of registration:
- The borrower falls into the age range of 25 to 45 years.
- A monthly transfer of the borrower's salary is made to the creditor bank card.
- The borrower has a long working experience.
- The borrower has a crystal credit history.
Effective loan rate offered by the bank
In accordance with applicable law, the bank is required to disclose to the borrower the effective interest rate. It represents the aggregate annual interest rate plus possible bank fees. It is at this rate that the bank will calculate interest on the use of credit funds, therefore, before signing the contract, you must familiarize yourself with this item in more detail.
Bank fees
Any loan issued by the bank is subject to a commission. Commissions can be disposable, which the borrower pays only 1 time, for example, for considering a loan application, commission for issuing a loan. If the borrower repays the loan ahead of schedule, a fee may also be charged.
Regular commission deductions are: annual servicing of a credit card, cash withdrawal from a credit card. Given all the fees, the borrower must decide for himself where it is more profitable to take a cash loan.
Repayment of a consumer loan
There are two schemes by which you can repay the loan: differential and annuity. By default, many banks use an annuity type of payment, which consists in making a fixed amount on a monthly basis. An annuity payment consists of two parts: principal and interest. Every month there is an increase in the amount in payment, which is sent to pay off the main debt, and the amount of accrued interest, on the contrary, decreases. With this method of repaying a loan, interest on its servicing is charged on the remaining amount of the main debt.
A differentiated way of paying off debt is to make different monthly payments, starting from the largest, and gradually decreasing.
Any banking institution is not interested in an early repayment of a loan, therefore banks establish a certain temporary moratorium during which the borrower does not have the right to repay the loan ahead of schedule. Usually it ranges from 1 to 6 months. Or, some banks allow you to repay the loan ahead of schedule, but at the same time pay a commission in the amount of 1-12% of the amount that is paid ahead of schedule. Therefore, wondering where to get the best cash loan, you should prepare for various kinds of commissions and interest rates.
Credit and Consumer Cooperative (CPC)
If the borrower for some reason does not want to contact the bank, then you can apply to the CPC. Let's try to answer the question of where it is more profitable to take a cash loan in Yekaterinburg. In the CCP, of which there are more than 20 organizations in the city. These are “Union”, “Golden Fund”, “Assistance” and others.
Credit-consumer cooperative is a union, which includes individuals and legal entities, united on a certain basis.
To qualify for cash, you must:
- Become a member and pay membership fees.
- Be an adult.
- Have any registration in Russia.
Documents for applying for a loan include:
- Passport.
- SNILS.
- A certificate in which the amount of repayment of the borrower's labor is indicated (if the shareholder does not issue a loan for the first time, or if the co-operative receives a salary or pension for a long time, a certificate is not required).
The maximum possible amount of money that the KPC can issue should not exceed 10% of all loans issued, as of the date of the decision to issue it.
The repayment periods are calculated individually for each shareholder and are displayed in the payment schedule attached to the loan agreement.
Having considered the requirements of the CPC to the borrower, each independently decides where it is more profitable to take a cash loan.
MFI
If the borrower cannot boast of having a normal credit history, and there are fears that neither the bank nor the KPC will give him money, you should contact a microfinance organization (MFI). Where is it more profitable to take a cash loan in Omsk? Which MFI is better to go to? Today in the city of Omsk there are more than 30 MFIs that are ready to cooperate with those who wish to take a cash loan.
Making a loan is simple: you need to reach the age of majority and provide a civil document (passport). Each MFI has its own minimum and maximum cash disbursement amounts. The timing of the return varies. For example, they are ready to issue up to 100,000 rubles to Express Credit at 0.4% per day and with a repayment period of up to 24 months. And “Before Salary”, on the contrary, is given a maximum of 10,000 rubles, with a payment of 1% per day and with a repayment period of 20 days.
Here is the choice of the borrower, where to get a favorable cash loan.
Pawnshop
If the borrower does not want to wait for the decision of the credit organization and fill out the necessary applications and questionnaires, he can contact the pawnshop. Where is it profitable to take a cash loan in Moscow? At the pawnshop.
There you can hand over jewelry made of gold, and cutlery made of silver, precious stones, watches. There is a category of pawnshops that pledge household appliances, cell phones and fur coats.
Having considered the proposed credit organizations, each of the borrowers chooses a place where it is more profitable to take a consumer loan in cash.
Today in Russia there are many loan offers for any category of borrowers. When reading where it is profitable to take a cash loan (reviews on the Internet), there is no clear answer which credit institution is better to contact. Each case is individual and everyone should choose the best option for themselves.