Often there are times when money is urgently needed, but there is no collateral. And even more so, given that almost every citizen now has at least the smallest loan, finding a guarantor also becomes problematic. One thing remains - to apply for a loan without collateral. Unsecured consumer credit - what does it mean and what are its features?
Definition
Unsecured consumer credit refers to a loan without providing collateral and a guarantor. What is a consumer loan issued without security? Borrowed funds can be spent on any purpose at your own discretion. It can be a repair, purchase of things or equipment. Such loans are suitable when money is needed urgently.
These loans include:
- credit cards;
- cash loan or to a current account;
- unsecured loan at points of sale for the purchase of goods.
Demand
Financial institutions have the following requirements for their borrowers:
- Permanent registration in the region where the financial institution is located. Some banks may allow temporary registration.
- The age of the borrower varies from 18 to 70 years. Again, the higher the age, the greater the likelihood that the bank will require collateral. Therefore, it is optimal in this case to take loans up to 60 years.
- The presence of a permanent job and an official source of income.
- Work experience must be at least a year, and at the last workplace - at least six months.
- For men, a loan can be provided upon presentation of a military card.
- When specifying contact information, an additional telephone is required.
- If the loan involves accounting for family income, then the requirements for the other spouse will be similar.
Documents
Naturally, different banks require a different set of documents from borrowers. But basically it is a standard set, which includes:
- loan application;
- identity document;
- the second document, which can confirm the identity of the borrower (this is either SNILS, or a passport, or a driver’s license);
- TIN;
- copy of labor;
- Help 2-PIT.
In addition to the above documents, some banks may request a certificate from the pension fund, bank account statement, tax return (for legal entities), and some may only request a passport and income statement to provide a consumer loan without collateral, however, in the latter case, the amount will be small.
Conditions
The conditions that financial institutions offer vary widely. For example, having a positive credit history and being a member of the salary project, you can get loyal conditions for a consumer loan without collateral from the bank. What does it mean? These are minimum interest rates, a long loan period, and the maximum loan amount. By the way, the interest rate can be reduced if the borrower draws up an additional service in the form of accident insurance or job loss.
Consider the basic conditions for loans without collateral.
main parameters | Conditions |
Amount | - the minimum amount may be from 15,000 p .;
- the maximum that banks can offer in this case is from 500,000 p. up to 1.5 million p .;
- holders of salary cards and clients with a positive credit history can count on larger amounts.
|
Interest rate | The interest rate is always calculated individually, based on the amount and terms of the loan. You can take out insurance for a consumer loan without collateral. What does it mean? That interest rate will decrease by a couple more points. |
The timing | - minimum term: from 3 months to a year;
- up to 5 years maximum.
Sometimes the term can be up to 7 years. |
Extra options | - lack of security;
- no additional fees for servicing or issuing a loan;
- the application is considered from several hours to five days depending on the financial institution.
|
The client should be prepared for the fact that banks very carefully consider loan applications and are demanding of future borrowers. If the organization has any doubts, most likely it will refuse to work without a guarantee or security.
There are banks that practice informal collateral when the collateral provided is taken into account, but does not affect the terms of the loan. This option is usually used when the value of the collateral is small, and the surety does not satisfy the requirements of the bank.
Bank Overview
Consider the example of various banks, what constitutes a consumer loan without collateral. The review of banks will consist of the largest and most well-known financial organizations.
Name of company | Amount (RUB) | Loan terms (months) | Interest rate % |
Sberbank | From 15 thousand to 1.5 million with proof of income | 3 - 60 | From 14.5 |
VTB 24 | From 50 thousand to 3 million with proof of income | 6 - 84 | From 18 |
Gazprombank | From 30 thousand to 1.2 million with proof of income | 6 - 60 | From 16.5 |
Bank of Moscow | From 100 thousand to 3 million with proof of income | From 16.9 |
Russian Agricultural Bank | From 10 thousand to 750 thousand with proof of income | From 22.5 |
Alfa Bank | From 50 thousand to 2 million with proof of income | 12 - 60 | From 16,99 |
Opening | From 25 thousand to 800 thousand with proof of income from 300 thousand | 6 - 60 | From 17.9 |
UniCredit Bank | From 60 thousand to 1 million without proof of income | 12 - 84 | From 16.9 |
Raiffeisenbank | from 91 thousand to 1.5 million. From 25 thousand to 800 thousand with proof of income | 6 - 60 | From 17.9 |
Promsvyazbank | From 30 thousand to 1.5 million. From 25 thousand to 800 thousand with proof of income. | 6 - 84 | From 16,5 |
Having examined the main proposals of the largest banks, we can understand what it means to consumer credit without collateral. Sberbank, for example, offers good amounts for reasonable terms, but a low interest rate will be set only if the maximum package of documents is submitted. Other organizations overstate. And all because there is no security.
And yet, this method of lending has several advantages both for the bank's client and for the financial institution itself.
Advantages and disadvantages for the borrower
Unsecured consumer credit - what does this mean for a bank customer? Consider the main pros and cons of this method of providing a loan.
The positive aspects include the following:
- the opportunity to take a loan without providing collateral real estate and a guarantor;
- minimum list of documents;
- quick time for consideration of the submitted application;
- ease of concluding a loan agreement;
- lack of control by the bank over the use of funds.
The negative aspects include the following:
- without collateral, the interest rate is much higher;
- high fines and penalties for late payments and default on credit obligations;
- the amount of the loan without collateral is much lower than with it;
- the bank may reduce the terms of lending if it sees fit;
- the borrower is responsible to the bank for a loan with all his property.
Pros and Cons for Banks
To provide a consumer loan without collateral - what does this mean for banks? On the one hand, the advantage of such lending is the demand for the program among bank customers, high income from the loan itself and a simplified application processing scheme. On the other hand, there are also disadvantages. These are rather high risks and difficulties in collecting in case of default.
However, this product is offered due to the high income for the financial institution.
Reviews
According to customer reviews of different banks, unsecured consumer credit is a convenient tool when you need money, and there is no place to take it. Convenience lies not only in the quick reaction of the bank to the application, but also in the ability to repay the loan ahead of schedule and vary the monthly payment (up).
Not everyone, of course, is lucky in obtaining a loan. There are also dissatisfied customers. But, as it turns out, these are those borrowers who have a bad credit history, or customers who cannot submit any of the necessary documents.