How to get the right loan? This is a common question. Let's take a closer look. Today, credit is one of the most common ways to improve their financial situation and solve many financial problems, and the citizens of our country began to actively use this opportunity. Nevertheless, a loan is one of the financial instruments, and you need to use this instrument correctly, otherwise, instead of solving problems, you can add new debts to their list.
In the past, a credit method such as credit cards was very common. Thus, people withdrew money or could pay with the help of such a card certain goods and services. However, credit cards provide for too high interest on cash loans, which subsequently costs citizens very expensive. A credit card is nothing more than an advertising move by banking organizations, which consists in informing people about the convenience of such loans because the card is convenient and you can take it with you everywhere and use it without any restrictions. Therefore, taking a loan at the bank, taking into account a specific program that will suit each client individually, taking into account his goals and needs, will be the best way out. We will figure out how to get a loan correctly.
Types of lending
Loans for individuals and legal entities in banks can be different, which depends on many factors. The main types of loans are:
- Loans without collateral. Such loans are usually consumer. This also includes credit cards.
- On the security of any property. This property can be real estate - houses, apartments, cottages, land, as well as various types of movable property - vehicles, expensive fur products, jewelry, etc.
A loan is a type of loan that is issued by non-banking institutions, for example, investment funds, MFIs, pawnshops, as well as private investors. These entities and individuals may issue loans based on documents such as loan agreements. This is due to the fact that these structures do not have the right to credit without special licenses of credit institutions, which are available only to banks.
How to get a loan for a car, consider further.
Solvency
The most basic thing for people who want to take a loan is their solvency, that is, the presence of such income that can ensure not only payment of loan payments, but also the basic life needs of a person. The solvency of a client for a banking organization is the presence of a document confirming his official income. Such documents are: employment record, certificate of employment, employment contract with the employer, etc.
It is almost impossible to get a consumer loan from a bank or a credit card without official income, however, you can use one of the types of loans that require a pledge. In this case, one can get out of a predicament by owning any valuable property.
Nevertheless, for some banks, a minimal package of documents confirming the solvency of their client is sufficient, and this is explained by the fact that banks always strive to attract more people who will use their services.
How to get a loan and what should be taken into account?
Credit history
Another important point in obtaining a loan at the bank is the credit history of the client. If this information is positive, the borrower can count on lower interest rates on the loan, and the terms of the loan will be most beneficial for him.
Clients whose credit history is suspicious of the bank, for example, if a person in the past did not pay on time their loan debts, may be denied funds or their amount will be significantly reduced. However, any negative credit history can be corrected by taking a few short-term loans from the bank and paying money without delay.
Many are interested in how to get a loan from Sberbank. Our recommendations are suitable for this institution.
List of documents required for lending
To get a regular consumer loan, it is enough for the client to submit to the bank a minimum package of documents, which includes a passport, insurance certificate and a certificate of employment. However, the more documents the borrower submits, the more favorable the loan conditions will be for him, and interest rates will be lower.
In cases where a loan is issued on the security of valuable property, for example, real estate, it is necessary to submit documents confirming the ownership right to the bank, as well as an extract from the Unified State Register. In addition, so-called title documents may be required that can confirm the occurrence of the property by the owner, for example, a gift or inheritance contract for real estate, a sales contract, etc. Documents from the BTI, extract from the house book, cadastral passport may be required, as well as certificates about the absence of arrears on utility bills.
How to get a loan at the bank, not everyone knows.
Where to apply for a loan?
It is best to apply for a loan at the most trustworthy bank. Information on this may be contained on the official websites of major major banking organizations and should be carefully studied. Nevertheless, in cases when a citizen was denied a loan, he has the right to try contacting other banks. If this event was unsuccessful, you can take the help of brokers specializing in providing assistance in lending. But for such a service you have to pay a certain amount of money.
It is important to find out in advance how to get a consumer loan.
Additional fees and commissions
When drawing up a loan agreement, the client of the bank must carefully read its contents, since it often happens that people who have issued a loan will learn about additional fees even when they have debts on them.
Additional fees may include:
- commission for the provision of credit funds;
- commission in the form of monthly payments for maintaining a current account;
- cash withdrawal fees;
- late fees and penalties;
- insurance.
In addition, when obtaining a loan, it is necessary to familiarize yourself with the possibilities of early repayment and with what are the terms of this event.
How to get a cash loan, they ask most often.
Loan interest rates
Interest on loans can be completely different. It depends on the banking organization that provides the loan, as well as on many other factors, for example, the credit history of the borrower, the collateral that he can provide, the lending program, etc. Trustworthy clients who have repeatedly used the services of a particular bank, interest rates on loans can be significantly reduced.
In addition, interest rates are largely dependent on loan terms. For example, the longer the loan repayment period, the higher the interest rate, and vice versa.
There are several types of loan and interest payments:
- Differentiated payments, consisting of monthly payments, as well as a decreasing portion of interest on such a loan, which is calculated from the residual amount. In this case, the loan is paid in certain installments during the entire loan term.
- Annuity payments, which are equal amounts on a loan, including interest and principal amount.
- Payment of interest only.
Loan repayment schedule
Another important condition for granting a loan is a payment schedule. The client is advised to carefully familiarize themselves with this point, since such conditions are very diverse. A very profitable option is a loan repayment schedule, when the principal amount of the loan and some of the interest on it are paid monthly. Differentiated payments correspond to this scheme, when the borrower can repay the principal amount of the loan ahead of schedule, significantly reducing interest payments.
In addition, the bank's client executing the loan agreement should carefully read its clause such as overpayment on this loan. In this case, you should compare the schemes that other banks offer, the monthly payment system and the amount of money that will eventually be overpaid.
These recommendations are relevant when answering the question of how to get a mortgage loan.
Real estate secured loans
A loan can only be provided to a citizen who owns a certain type of real estate. There are some age restrictions, for example, persons who have reached the age of 21, as well as pensioners, may be denied a loan secured by real estate. Or a person will be given a loan only for a period until they reach retirement age. The owner of immovable property pledged by a loan must be legally capable, and also not registered with a narcological or neuropsychiatric dispensary. In addition, bank security officers will check it for a criminal record.
Recently, there have been many cases of fraud on the part of individuals who issue loans on the security of real estate. They work according to a clear scheme, which involves re-registering the object in their name. Therefore, a borrower who was denied a loan at a banking organization should be very attentive to transactions concluded with such agents, familiarize himself with the documentation, and receive qualified legal assistance in all matters of interest to him.
And some more recommendations on how to get a cash loan.
Loan objectives
Applying to a credit institution for a loan should always have a purpose. This means that the client of the bank must be clearly aware of the direction of these funds and the effect that he wants to get. For example, when receiving a loan for education, a citizen should strive to gain knowledge and improve his professional qualifications. If the loan is taken for the purpose of buying a home, the bank's client must spend money on real estate.
At the same time, one can focus on specific lending schemes offered by banks. There are various programs - mortgage, car loan, etc., which will help solve a specific life problem. The purpose of the loan may be specified in the contract, and such a loan will be called the target.
Now you know how to get a loan correctly.