The private lending market secured by cars in Russia is gaining rapid momentum. Money is given within a few hours, without further questions and proof of income. They do not pay attention to the credit history. Is this not a dream of every borrower? However, there are pitfalls. As a rule, you will learn about them after signing the documents.
Pawnshop: what is it?
You need to understand that these companies are not good wizards who give out gifts to everyone for free. Their goal is to maximize profits.
Customer reviews about pawnshops are very controversial. In a certain situation, such a company can help out a lot. But be prepared to pay for it.
First of all, the interest rate on such a loan will be significantly higher than in any bank. Often there are hidden fees and commissions - for insurance, replenishment of the account, paperwork, assessment of the subject of the pledge, etc. If everything is folded, an already rather big percentage grows several times.
But this is not the most interesting. It may happen that you are left without money, without a car and with a huge debt on your neck. Sometimes there is simply no other way. There is no opportunity or time to get a loan from the bank. Borrowers are ready to meet any conditions, just to get money as quickly as possible. Therefore, such companies will always find their customers.
What you should pay attention to?
Yet most fall into the trap of their own carelessness, gullibility, and laziness. It is important to pay attention to:
- terms and methods of making payments;
- rights and obligations of the parties;
- responsibility of the parties;
- additional payments, commissions and fines;
- terms in which they need to be paid.
Formally, no one is deceiving a client. Managers are simply modestly silent about some points in the contract. And only by signing it, the borrower is faced with a number of unpleasant surprises. So, it suddenly turns out that you can make a payment only by bank transfer, and the transfer fee is 2-3% of the amount. Or the client is obliged to buy insurance for 20-30% of the loan amount.
There are a lot of options for such a “deception”. Legally, everything is clean. Simply, the company uses the carelessness, credulity and illiteracy of customers to their advantage. In the best case, you will have to pay 2-3 times more than what was expected. But this is far from the worst.
Remember that the penalty may be imposed not only on the subject of the pledge, but also on all the property of the debtor. In case of violation by the borrower of its obligations, the car will be sold.
But by this time, the amount of debt often exceeds the value of the collateral. Accordingly, the debt will only be partially repaid. Fines for late payments are much higher than in banks. Therefore, debt will grow again very quickly. The borrower falls into financial bondage and it is almost impossible to break out of this vicious circle.
This is where all the stories about "black money-lenders", ruining gullible citizens, are born. In fact, it’s all a matter of banal carelessness and excessive credulity.
How to protect yourself?
Here are 4 rules that will help you not to be in a similar situation:
Carefully read each clause of the contract.
For all obscure points, consult with an independent lawyer.
Before contacting a similar company, study the reviews about it.
Assess all risks in advance.
Not all companies operate in this way. There are companies that take a rather large percentage, but everything else is transparent with them. There are no additional commissions and payments.
Pawnshop Terms
Consider a specific example. The National Credit Pawnshop has opened representative offices in 18 cities of Russia: Moscow, St. Petersburg, Yekaterinburg, Samara, Ivanovo, Izhevsk, Irkutsk, Kazan, Magnitogorsk, Nizhny Novgorod, Nizhny Tagil, Perm, Rostov-on-Don, Ryazan, Chelyabinsk, Cheboksary, Ulan-Ude, Tyumen, Tula and Togliatti.
It’s enough to drive in the phrases in any search engine: “National loan: reviews” to make sure there is no hidden connotation in the contracts of this company. Everything is extremely transparent. The main task is to provide loans to the population secured by vehicles.
On the loan under the TCP from the National Credit, the reviews are mostly positive. The conditions are not as favorable as in the bank - the loan rate starts at 3.5% per month. But you can get up to 70% of the estimated value of the car within 2-3 hours. Customers who took a loan under the TCP in the network "National Credit" often leave positive feedback.
In this case, the machine is still free to use. However, it will be confiscated and sold at auction if the borrower does not fulfill his financial obligations. The company rarely makes any concessions. This is also warned by reviews of the "National Credit" on the Internet in the forums.
For the duration of the contract, you transfer the car to the ownership of the pawnshop. Until you repay the debt, the car is leased, as it were, under a lease agreement. As soon as you successfully repay the loan, the car will again be yours. Reviews of the "National loan" confirm this.
If you are ready to refuse to use the car for the duration of the contract and park the car, you will receive a larger amount - up to 90% of the cost of the vehicle.
You can get money on the security of special equipment for construction or agricultural purposes. The conditions are the same as for cars. And this is confirmed by the reviews of real clients of the National Credit.
Requirements for the borrower:
Documents for obtaining a loan:
Collateral Requirements:
The demands are more than loyal. Therefore, the loan under the TCP in the "National loan", according to customers, is one of the most popular services.
Features
loans only against collateral;
a loan is granted for a period of 3 to 24 months;
interest rate - from 3.5% per month;
registration takes place within 2-3 hours;
credit history is not important;
proof of income is not required.
According to customer reviews, the National Credit auto pawnshop is a good tool not only for the borrower, but also for the investor. The company provides loans only against collateral. Moreover, the size of the collateral base is 2.5 times the amount of loans issued. This gives investors certain guarantees of the preservation of capital.
The company pays from 11% to 13% per annum for individuals and from 13% to 18% per annum for legal entities. The minimum amount is 300,000 rubles. Maximum - not limited. The investment term is from 3 to 60 months for individuals, from 3 to 24 months - for legal entities. Interest is paid monthly or at the end of the term, that is, at the request of the client.
The company acts as a tax agent and independently pays personal income tax for individuals.
Benefits
For borrowers:
No income verification required
credit history is not important;
you can get money and continue to use transport;
minimum package of documents required;
money is issued in cash within 2-3 hours from the moment of circulation;
you can calculate the loan amount and monthly payment online using a convenient calculator on the official website of the company;
Representative offices in 18 cities of Russia.
For investors:
each investment is secured by real collateral;
8 years, the company fulfills all obligations to investors - according to reviews of the "National loan" on the Internet;
formal agreement with each partner;
entry from 300,000 rubles;
interest rate helps protect capital from inflation;
interest payments monthly or at the end of the term;
the collateral base is 2.5 times the volume of loans issued;
the company takes care of all the work with borrowers.
Disadvantages of a pawnshop
For borrowers:
high interest rate - from 3.5% per month;
loans are only secured by a vehicle;
the machine must be on the go and in good condition;
the need to transfer the car into the ownership of the pawnshop for the duration of the loan agreement;
interest is calculated on the initial loan amount, and not on the balance of the debt, judging by the reviews of the National Credit company, this is the most significant minus.
What are the other disadvantages? For investors:
the interest rate only slightly exceeds the real inflation rate;
there is no state deposit insurance system;
pledged property for the duration of the loan agreement passes into the ownership of the National Credit pawnshop, and not to the investor.
As you can see, this offer is beneficial for borrowers with poor credit history or lack of verified income. A loan secured by TCP allows them to quickly receive a large amount without unnecessary questions. In this case, the car itself remains with the borrower and he continues to use it. Therefore, more often you can find positive customer reviews about the National Credit Bank.
The pawnshop offers investors a “safe haven" where capital is protected from inflation with a minimum level of risk.
Customer reviews of the National Credit pawnshop network
Is it worth trusting someone else's experience? On the Web you can find various reviews about the "National loan." They took a loan under the TCP and immediately shared their opinions. It is almost impossible to control this process from the company.
Almost all customers find the car rating fair. They also talk about quick loan processing and attentive service. Another significant advantage of the customers of the pawnshop is the transparent terms of the transaction and the absence of hidden fees.
Basically, borrowers are grateful to the company for their help in a difficult situation. It would be problematic, if not impossible, to get the required amount in another way.
Nevertheless, many customers note that the interest rate in the National Credit pawnshop is higher than the market average. Despite this, according to statistics, every fourth client contacts the company again. In particular, on one reputable site you can see 41 positive reviews about the company and only 3 negative reviews.
Complain about the confiscation of cars and predatory fines - up to 2% per day. It happens that a debt of 60,000 rubles grows to 190,000 in 30 days. The car is confiscated and put up for sale. There may not be enough money from the sale to pay off the debt. In this case, a penalty will be imposed on other property of the debtor.
However, this is rather the problem of the borrowers themselves, who inattentively read the terms of the loan agreement upon signing, violated their obligations later.
The most serious minus, according to customers of the National Credit pawnshop, is interest on the entire loan amount, and not on the balance on it. This is not so significant in the short run. But if you have to pay back the loan in a year or two, then the overpayment is substantial. Therefore, carefully read the loan agreement and carefully weigh the pros and cons.
As for investors, the company has been fulfilling all its obligations for 8 years. Negative reviews from people who invested their money in the National Credit pawnshop were not found.
However, investors have noted a number of shortcomings. Among them:
interest rate lower than the market average;
the pledge is not made into the ownership of the investor for the duration of the contract;
There are no guarantees of return on investment by the state.
Most investors use a deposit in the company as a temporary haven between transactions, which can protect money from inflation.
But in the reviews of employees of the National Credit, they say that they like the work. There is financial motivation, the work is interesting, although difficulties arise periodically.
Franchise Pawnshop "National Credit"
A franchise is an opportunity to start a business under the wing of a famous brand. Autopawnshop "National Credit" takes care of all marketing. Your task is to process received applications and serve customers. Reviews on the National Credit franchise are only positive.
The company offers 2 formats of cooperation: mini and maxi. In mini format you get:
the right to use the NK brand;
the right to use the services of service companies servicing National Credit;
the right to lease the resources of a maxi-format enterprise.
The franchise cost is 300,000 rubles. Royalty - a monthly payment for the right to use a franchise - 4% of the turnover.
Maxi significantly expands the possibilities. You control all the enterprises of the mini format. In fact, the maxi format is the central representative office of a company in a certain city. The franchise cost is 2,000,000 rubles. Royalty - 3.5% of the turnover.
A well-known brand gives a certain credit of trust among investors. Attracting capital will be much easier. In addition, the company takes care of all marketing nationwide. You already get customers who are ready to apply for a loan. This is a relatively simple, safe and affordable way to start your own business.
As an example, consider the query: "National Credit" (Samara), reviews in Samara. On the official website we see that in Samara there is only one office: at ul. Working, d. 15. Reviews of his work are positive. This means that the company cares about its own reputation not only in the capital, but also in the regions. Accordingly, there is a free market for starting a business.
To do this, you need:
Banks are constantly tightening requirements for borrowers, demanding more and more documents: official proof of income, a copy of the employment contract and so on. It takes several days to assemble such a package. Plus, the application itself will be considered for at least 3 days. Assessment and verification of the subject of the pledge will take another couple of days. As a result, the process of issuing a loan will drag on for a week. In addition, a positive credit history is required.
Often money is needed urgently, which is called "yesterday." Accordingly, the demand for such services will only grow. Thanks to the support of a well-known company, such a business does not require large start-up investments, has a minimal level of risk and is becoming more and more popular. To verify this, look at the statistics of reviews of the National Credit Bank.
To summarize
A loan in the National Credit pawnshop is suitable for those who:
own a car or other vehicle;
bad credit history;
there is no way to officially confirm the income;
a large amount of money is needed in a few hours.
Under other conditions, using the services of the National Credit pawnshop, and any other, is simply unprofitable. To make sure of this, it is enough to quickly examine the issuance of any search engine. You can do this on request "National Credit Leasing Reviews". But in such a situation, this is often the only way out.
What you need to be prepared for:
interest rate is much higher than in banks;
huge fines for the slightest violation of obligations;
the car is transferred to the ownership of the company for the duration of the contract;
in case of violation of contractual obligations you will lose the car.
Nevertheless, a loan under a TCP from “National Credit” reviews almost always collects positive ones and enjoys well-deserved popularity.
In any case, you need to carefully read the terms of the contract and carefully weigh the pros and cons. This will save you from many surprises and disappointments. It should be remembered that this is still a business, not a charitable organization.
It is much more profitable to cooperate with a pawnshop, according to reviews of the National Credit as an investor, rather than take a loan under TCP. The interest rate is higher than for a bank deposit. The size of the collateral base is 2.5 times the volume of loans issued. In addition, for 8 years, the company has never violated its obligations to investors.
All this inspires confidence. However, the following risks must be considered:
Collateral - the property of the company, not the investor. Therefore, we can say that each loan is secured by real security. This is only true with respect to the National Credit itself, and not to investors. Actually, investor funds are protected only by the guarantee of the National Credit pawnshop. Even state insurance is missing here.
There is no control and leverage on the part of the investor. In fact, you transfer funds to trust for a certain period. There is no way to control the process and influence the final result.
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Another advantage of such an investment is that the final result depends only on you, you control all the risks.