It's no secret that credit is a special type of consumption. Consumption is the ability to purchase the necessary product or service. Currently, major purchases, including the purchase of furniture, appliances or other necessary things for life, are somehow related to lending. Today, anywhere you can come across a proposal to issue it in 5 minutes: furniture stores, equipment stores and even clothing stores.
Types of Consumer Loans
First of all, it is necessary to note the classic type of loan, upon receipt of which the borrower receives money at the cash desk and acquires the necessary goods. Such a loan product is sometimes called a "standard loan" or "loan for urgent needs."
The next type of consumer loan is funds for recreation. In this case, the borrower takes money for a specific purpose - the purchase of a tourist permit. Money can be issued both in cash and non-cash by transferring funds to the account of a travel company. The loan term is usually not more than a year. The listed types of consumer loans are executed according to two documents in a matter of minutes at any bank branch.
The next type of targeted loan is a student loan. In this case, money is transferred to the university’s bank account by issuing an invoice indicating the total amount for the entire period of study. However, it must be borne in mind that a loan cannot be issued to a minor, you have to turn to your parents for help. An education loan differs from the usual one in that a deferred payment is formed on it . Thus, the student can study, paying only the basic interest, and, having received a diploma and getting a job, pay off the main debt. The main credit burden will fall on him only after graduation.
Payments and types of commissions on consumer loans
If we consider ordinary targeted loans, annuity payments are very popular . The essence of this scheme is extremely simple: the entire amount is distributed over the entire loan term in equal shares. That is, if a loan is issued for 3 years, you will have to pay 36 monthly installments. Often there are loans with differentiated interest rates. In this case, the loan amount with each installment will decrease.
In addition to payments, banks set mandatory commissions for opening and maintaining an account, for SMS informing and other services prescribed in a
loan agreement. Commissions apply to all types of consumer loans. Currently, several hundred banks offer various conditions for consumer lending. Lost among such a variety is very easy, but there are several options.
Choosing the Right Credit Product
The first way is the easiest. To do this, you need to contact a bank specialist in person. The second method involves independent familiarization with the information on the bank's website, thanks to which all types of consumer loans will be studied with a detailed description of the conditions for obtaining and repaying.