The need for cash may arise at the most inopportune moment. It is necessary to take a cash loan as quickly and on favorable terms as possible. And then the question arises: "Where to turn?". Bank or microfinance institution (MFI)? In terms of benefits - a bank, and as quickly as possible - an MFI.
Bank
When applying for a loan to the bank, the future borrower must provide a package of documents. The more documents a borrower can provide to a bank in order to confirm his favorable status, the lower will be the annual interest rate, and the loan amount, on the contrary, will increase.
What do you need?
The package consists of:
- Identity document.
- Compulsory health insurance policy.
- Rights or certificates of registration of the vehicle.
- A foreign passport, it is desirable that it includes passport control stamps indicating a trip abroad for the past 6 months.
- Inquiries from the real place of work on income for the past 12 months, certified by the seal of the head of the organization and signature.
- Copies of all pages of the work book or other documents that can confirm employment. This can be an extract from the workbook or a certificate signed by the head of the organization, which contains information about the employee: his position and seniority. Or a copy of the employment contract. All pages of documents must contain the seal and signature of the head. The experience from the current place of work must be 6 months, and the total length of service - at least 12 months.
- Certificate of registration with the tax service (TIN).
To get a cash loan from the bank, additional documents may also be required:
- military ID (for persons who have not passed the age limit of 27 years), and in its absence - documents that can confirm the presence of a deferment from military service;
- The original and a copy of the certificate of marriage or divorce;
- A copy of the certificate confirming the ownership of the real estate.
In the current 2016, in order to take a cash loan, a loan , the beneficiary will have to choose a bank with the most attractive interest. For consumer loans, the rate will be from 22-38%, the mortgage will go from 11.9-18.8%, and a car loan will cost from 18-24%.
The package of documents submitted by the borrower will be checked by the bank security service within 2-12 business days. After that, the bank employee will inform the future beneficiary of the decision by phone. The borrower will be able to repay a cash loan from 1 to 3 years, based on the loan amount and interest charged for it.
Almost any borrower with a complete credit history can count on receiving the maximum possible loan. The amount received will depend on the monthly income and expenses of the borrower and the type of collateral that he can provide.
MFI
If the bank requires a complex set of documents, forcing the borrower to collect a lot of certificates and make voluminous photocopies of various documents, then to get money on credit at the MFI, you will not need a bunch of documents. And in time everything will be decided much faster. The only negative is that even if the borrower collects a large number of documents confirming its viability, the interest rate will still be higher than at the bank. In addition, the loan amount will be limited, especially if the borrower applies for the first time. And the loan amount will be issued only in rubles.
The list of documents that will be needed to apply is very short and consists of only one item - an identity document.
It is possible that the borrower will be asked to provide a second document, but here he can choose himself from the list that the lender will offer.
For a cash loan granted, interest will be different, depending on which microfinancing organization the borrower will cooperate with. The minimum interest rate for first-time applicants is from 0.8 to 2% per day. Accordingly, the annual percentage will fluctuate: from 292 to 730%.
The borrower will be required to return the amount received for a fairly short period of time: from several weeks to six months.
If the borrower does not apply to the MFI for the first time, then he can expect to receive a loan on other, more favorable terms. Repeated loan is characterized by a reduced rate, which is reduced by almost 2 times. Also, the borrower can count on an increase in the loan amount. Thus, the company tries not to lose a single customer. Psychology works here - in this MFI they consider him a serious and positive client when they give money on credit and provide bonuses, so why look better?
Credit card
Another way to get a loan is to get a credit card. According to statistics, more than one third of the population of Russia uses a credit card.
What will be required for its design?
To get a credit card, you will need to collect an identical package of documents, like for a consumer loan. When you first issue a credit card, you should not count on a large credit limit. If the borrower takes a responsible approach to monthly payment of the debt, as well as actively uses the card, then his credit threshold will increase. Do not withdraw cash from a credit card. Firstly, this is not welcomed by the banking system, and secondly, the fee for issuing cash from a credit card can reach a threshold of 5% of the amount issued. And sometimes the commission may exceed the issued amount of money.
Interest, repayment period and other expenses
Making a credit card to receive a cash loan does not take much time: from 1 to 7 working days. Sometimes the borrower does not need to go to the bank to get it - the courier service will deliver a credit card to his home.
A credit card has an average life of 3 years. Each year it will be necessary to pay for the service. The amount will be calculated based on the type of card: Maestro or Visa, from the credit card limit, plus the costs incurred by the bank servicing the client at the bank branch. Monthly payment of the loan will be 5% of the credit limit amount.
Choosing the right place for lending is the prerogative of every citizen. You should correctly assess your financial capabilities, plan income and expenses, not make rash expenses in order to repay debts in a timely manner and not worsen your credit history.