Currently, bank loans have become a common source of funds for large acquisitions for both the population and enterprises. It is often not easy for an uninitiated person to deal with a variety of loan offers and loan conditions.
Bank loan - the transfer by a credit institution to an individual or legal entity of funds on a paid basis with the condition of their repayment after a certain period of time.
Types of Bank Loans
In the economy, there is no single division of loans into its certain types. The most common classification features are most often identified:
- lending entity (to individuals, legal entities);
- term (short-term, medium-term, long-term, demand);
- purpose (consumer, car loans, investment, mortgage, trade, industrial, agricultural);
- availability of collateral (secured, unsecured);
- size (small, medium, large);
- repayment method (redeemable as a single amount, redeemable on schedule);
- type of interest rates (with a fixed interest rate, with a floating interest rate).
Currently, bank credit, the Russian banking system are undergoing changes: the number of loan offers is growing, their conditions are becoming more diverse.
Further in the article we consider in detail the most common bank cash loans for individuals and significant parameters of lending programs.
Consumer loans
Consumer loans are bank loans for urgent needs, funds for which you can spend on any purpose at your discretion. A consumer loan may be the best option if the amount is not large, and the speed and ease of receiving money is very important. If desired, you can get a loan on a bank card, account or in cash. Payment is possible through cash desks, ATMs and via the Internet. You can pay by credit card, cash or transfer from the account.
Conditions:
- Loan amount: the minimum amount varies between 15-50 thousand rubles, the maximum - from 500 thousand rubles to 3 million. For clients with an impeccable credit history and salary clients, the amount can be increased.
- Interest rate: it depends on several parameters and has a large spread in different banks.
- Loan term: as a rule, it is issued for a period of up to 5 years, but can be increased for some categories of borrowers or with an expensive collateral. For example, a consumer bank loan is issued by Sberbank for a period of up to 20 years with a pledge of real estate.
- Collateral: collateral, surety of individuals or legal entities, extradition without collateral are possible.
- Duration of consideration: from 30 minutes to several days.
Benefits:
- A small package of documents.
- A simplified procedure for considering a loan application.
- Short term for a decision on extradition.
- There is no control over the purpose of spending money.
- The ability to receive money on hand.
Disadvantages:
- High loan rates.
- Low maximum loan size.
- Short term of the loan, and, as a result, a large monthly payment.
- The maximum age of the borrower is lower than for other loans.
Credit cards
Conditions:
- Loan size: maximum amounts on credit cards are usually low and amount to 100-700 thousand rubles.
- Interest rate: the highest rates among all loans, vary from 17.9% to 79% per annum.
- Loan term: up to 3 years
- Collateral: not required.
- Duration of consideration: from several minutes to 1 day.
- Grace period: 50-56 days, during which interest is not accrued upon repayment on time.
- Additional commissions: commissions are often provided for cashing and for card maintenance. For example, a Home Credit bank card “Usefully card” costs 990 rubles annually, and a Useful shopping card is free of charge.
Benefits:
- The presence of a grace period.
- A simple application approval process.
- The minimum time for consideration.
- The minimum set of documents.
- There is no control over spending money.
- Possibility of receiving by courier or by mail.
Disadvantages:
- High interest rates.
- High late fees.
- ATM withdrawal fees.
- Low loan amount.
- Annual card maintenance fee.
Car loans
Cars have become an urgent need, but not always enough funds for such a purchase. Bank loans for the purchase of vehicles are called car loans.
Conditions:
- Loan amount: maximum amount of 1–5 million rubles.
- Interest rate: from 10% per annum for new and from 20% per annum for used cars.
- Loan term: up to 5 years, for large amounts, the term can be extended.
- Collateral: purchased motor vehicle.
- Duration of consideration: from 30 minutes to several days.
- Down payment: usually 10-25%, but some banks offer programs without a down payment.
Benefits:
- Low loan rates.
- The amount is greater than a consumer loan.
- Short deadlines for consideration of the application.
Disadvantages:
- The package of documents is larger than with consumer lending.
- A short loan term and, as a result, a large monthly payment.
- The need for initial savings.
- Control over the spending of funds received.
Mortgage loans
The real estate market is actively developing, people tend to buy apartments and build houses. The bulk of housing purchases is with banks. Just for this, a mortgage loan is intended - a loan for the purchase of real estate.
Conditions:
- Loan amount: the amount of the mortgage varies from 100-300 thousand to 500 thousand to 15 million rubles.
- Interest rate: depending on the lending program from 10.5% to 25% per annum. Among all types of loans, mortgage rates are the lowest.
- Loan term: in different banks ranges from 15 to 30 years.
- Collateral: pledge of acquired or existing housing.
- Down payment: from 10-25% of the cost of housing.
- Duration of consideration: from a week to a month.
Benefits:
- Possibility of processing large amounts.
- Long loan term.
- Low interest rates
- The ability to attract co-borrowers.
Disadvantages:
- Volumetric package of documents.
- Long term application review.
- The need for a pledge of real estate.
- Control over targeted spending of funds.
Loan Parameters
Before you stop your choice on a certain type of loan and loan program, you need to evaluate how profitable it is and analyze its main parameters:
- Interest rate.
- Repayment method.
- Type of repayment schedule.
- Base for calculating interest.
- Additional fees.
- Associated costs.
Interest rate
The spread in interest rates is quite noticeable for different lending programs, even in one bank. The interest on bank loans depends on many factors, the most significant of which are as follows:
- Customer Reliability. Credit institutions prefer clients who receive a pension or salary from their account, as well as borrowers with a positive credit history. For such categories of applicants always offer preferential interest rates.
- Term and amount. It is beneficial for the bank to issue large amounts, therefore, with an increase in the amount, the rate decreases. And vice versa - the longer the term, the higher the rate. For longer periods, rates are sometimes higher up to five percentage points.
- The speed of clearance. Express loans with a minimum list of documents carry a big risk for the bank, so such loans are sometimes 2 times more expensive.
- Goal. For targeted loans (for example, mortgages or car loans), the rate is always lower. Even within the framework of consumer loans, there are targeted programs with preferential interest rates (for example, for the development of personal subsidiary plots).
- Availability of insurance. Having life insurance or against job loss can help reduce the rate by a few points.
Types of repayment schedules
In preparing repayment schedules, two breakdown methods are used: annuity and differentiated.
If the schedule is broken down in equal amounts for the entire term, then it is annuity. This type of chart is currently most commonly used by banks. The monthly payment in this schedule consists of an increasing amount of the principal and interest, and therefore is not as burdensome for the borrower as a differentiated one.
In the differentiated chart, the amount of the principal debt is divided into equal amounts for the entire term, and the amount of interest decreases with time. At the very beginning of the contract, payments with this method of breakdown are higher, but from the point of view of the general overpayment, it is more profitable. The amount of interest in the differentiated schedule for the whole period is lower than in the annuity one, where the amount of the main debt is initially repaid in small amounts, and the payment consists mainly of interest.
Base for interest
According to the Regulation of the Central Bank of Russia, interest on bank loans is charged on the balance of the debt, however, some credit organizations indicate in the loan agreements as the basis for interest payment the initial amount of the issue.
The first method, of course, is more profitable for the borrower, since the amount of interest will decrease with each repayment of the main debt.
In the second option, interest will not change throughout the repayment period, as they are calculated based on the initial loan amount.
Additional fees
In the process of paying a loan, the existence of additional commissions may become clear, the presence of which is better to clarify before signing a loan agreement.
Banks provide for various commissions related to both collateral or a loan application, and its servicing and repayment.
Associated costs
Associated costs may arise at different stages of obtaining and repaying a loan. During the consideration and execution of a loan, such expenses are most often associated with a pledge. For example, a pledge of real estate passes state registration, for which it is necessary to pay a state duty. When pledging vehicles in the traffic police, an arrest is imposed on registration actions also with payment of state duty. Some banks provide fees for urgent review of a loan application or for the assessment of collateral. Such expenses, of course, are paid by the borrower.
One of the most expensive items of associated costs can be considered insurance: personal, property, hull insurance, against loss of work and more. Insurance, as a rule, must be renewed every year.
Despite the fact that the Russian economy is going through a difficult period, banks and bank credit remain in demand by the country's population. Credit organizations offer a variety of lending programs, and, having understood the conditions, you can profitably use them.