Most of the population of Western countries has long been accustomed to exist on credit, and in Russia it is becoming more and more common to live on credit every year. For many people, accumulating the required amount, especially a considerable one, is an impossible task - it is much easier to borrow. In this regard, the question of how to get a consumer loan at low interest rates occupies the minds of many of our fellow citizens. At first glance, this is not very difficult - I studied the proposals of banks, chose a smaller number and go ahead, draw up documents. In fact, there are a lot of pitfalls in this matter. So let's figure out where to get a loan at a small percentage and not stumble over invisible obstacles.
Who needs a cheap loan?
First you need to decide for what purpose you need money. For example, if you want to take a large loan at a small percentage for the purchase of housing, then it is best to carefully study the proposals for mortgage lending - here the rates are quite small and the repayment period is significant.
If you decide to buy a car, it is best to choose a bank that operates under the program of preferential state car loans, in which case the state will pay part of the interest for you. But if you decide to look for where to get a loan at a small percentage for other purposes - repair, recreation, a complete change of wardrobe or purchase of expensive household appliances, then this article is for you. First of all, study the offers of banks and choose the most suitable ones, in your opinion. If you need money urgently, you can wait for a holiday, for example, on the eve of the New Year, many banks offer reduced interest rates and a variety of bonuses.
How to lower the interest rate
If you don’t feel like waiting, you can try to reduce the percentage offered by the bank. For example, a low interest on a loan can be obtained at the financial institution where you have a salary card issued. Reputable banks often make concessions to their regular customers.
Another way to reduce the overpayment is to get a loan against a good security or to attract one or more guarantors. Try to arrange targeted loans whenever possible - their rates are always lower.
The best way to reduce the overpayment is to return the money as quickly as possible, so before concluding an agreement with the bank, ask if you can repay the loan ahead of schedule and on what conditions.
If you need a small amount for a short period, apply for a credit card - almost all of them have a grace period during which interest is not charged at all. Sometimes it comes to two months, the main thing is to return the money on time.
The ideal candidate for cheap credit
Getting a cash loan at a low interest rate subject to certain requirements is quite simple. Here are a few requirements that will lead to a positive result:
- get a loan for the shortest possible time;
- collect the most complete package of documents;
- give preference to targeted loans;
- provide the bank with information confirming your level of solvency;
- official employment will be a plus;
- provide the bank with liquid collateral;
- keep track of your credit history - carefully make the required payments;
- try to cooperate with the same bank as long as possible - become a regular customer;
- if you take money to develop your business, be sure to submit a good business plan to the bank and bring a few guarantors.
Where to find a suitable offer
Today, the vast majority of people, studying the issue of where to get a loan at a small percentage, turn to Internet services. Indeed, there are an incredible number of offers on the Web, however, this method has both its advantages and disadvantages. The first can be attributed to the fact that almost every site has its own credit calculator, with which you can calculate the amount of overpayment without leaving home. In addition, you can not only read the loan agreement, but also print it out for consultation with a lawyer. Thus, you can study the offers of a large number of financial institutions without spending time on long trips and queues.
On the other hand, through the Internet you cannot ask the bank for a discount and you lose the opportunity to chat with a living person. Sometimes the percentage offered by the bank may depend on the personal impression of the manager. By the way, there are times when a bank employee may offer you a loan option, information about which is not yet available on the bank’s website (for example, talk about an upcoming promotion).
Tricks of banks
Now let's talk about whether a low interest on a loan is always beneficial. Oddly enough, but the small interest rate indicated in the advertisement in practice often turns out to be a fabulous overpayment.
What can be considered a low interest rate? Let's look at a few examples:
- 1% per day;
- 11% per month;
- 10% per annum + 0.8% for account servicing;
- 16% per annum (no commission).
Looking at the numbers, one would think that the lowest rate is 1%, and the highest is 16%. Is this really so, let's calculate:
One percent a day in a year will turn into 365% per annum. A lot, right? And if you need a loan for 2 or 3 years? Counted?
Next option: 11% x 12 months = 132% per annum. Too many.
Then we have only 10% per annum - it seems to be a little, but if we add the commission for servicing the account during the year 0.8% x 12 months = 9.6%, then in the end we will get a little less than 20%. And it all started so well ...
Now let's take the highest at first glance rate of 16%. If under the terms of the contract there are really no hidden fees for services, various commissions, etc., then this option will prove to be the cheapest in practice.
So in itself a low percentage still does not mean anything. To find the best deal, you need to know and carefully calculate all the costs that will fall on your shoulders.
Instead of an afterword
In conclusion, I would like to say that finding such a bank, where it is not difficult to get a loan at a small percentage, is possible only by approaching this issue with all responsibility. Remember: no financial institution will start to work at a loss, and a loan with a small interest rate does not mean “free”. So weigh the pros and cons, study as many sentences as possible. And you are sure to find the best percentage that will be “low” for you.