Every person at least once in his life heard about long-term loans. But not everyone knows for sure what they are. In short, this is a loan provided by banks and other financial organizations for long periods (from three years). But the topic contains a lot of details, and I would like to talk about them.
About service
Long-term loans are most often issued to two types of customers. The first include individuals who want to buy an apartment or build a house. But the funds are not enough, because they are decided on a mortgage. It is known that it is provided for a period of 5 to 30 years. A loan of this kind can be taken by any person aged 21 to 65 years, meeting other requirements, which will be discussed later.
Also, long-term loans are often issued by legal entities. Their goal is to use funds to finance fixed capital. It is worth noting that in the case of legal entities, long-term loans have a broader concept and definition. These include equity (management companies and funds of the bank), issue of bonds, deposits for periods of more than one year. But all of the above has one goal - investing money in an investment production project, which will subsequently make a profit.
Mortgage and car loan
This is the type of loan that is available to individuals. The most popular long-term loans nowadays.
The peculiarity of the mortgage is that the acquired housing becomes a guarantee. If a person cannot repay his debt, the bank / apartment / house / plot will be taken by the bank in order to recover the losses. On average, they take a mortgage for 10-30 years. To be approved, a person must confirm their solvency. To do this, he provides a certificate of income, a document on employment and his work experience and that which identifies himself. In the event that a person takes a really substantial amount, a “partner” in payments may be required, that is, a co-borrower. For example, a married couple may be given a large loan more likely than one person.
A car loan is also a long-term bank loan. It is usually taken for short periods, but some pay off debts within ten years. The minimum amount is 150,000 rubles, and the maximum is not limited. Another plus - in the case of a long car loan, you do not even need to make a down payment. It is very comfortable. But interest on long-term loans is higher - not 12-15%, but 15-20% per annum. If, for example, a person takes 10 million rubles for 10 years, then in the end his overpayment (in the case of 20%) will amount to 2,000,000 rubles.
Documents
There is a standard set of securities that you will need to provide when applying for long-term loans (and loans). Depending on the requirements of a bank, the list of documents may vary. But you will definitely need a statement drawn up according to the established model, a borrower questionnaire, an original and a photocopy of your passport and a statement of income. Typically, the period for which an extract is required varies from 3 months to 2 years.
Still need a photocopy of the work book, certified at work. Men will need to provide a military ID. If you have a driver’s license, then it will be needed (as a second identity document).
Typically, the application is considered within a week. But if all the documents are normal and the client meets the requirements, they can approve earlier.
About investing
If a legal entity needs a long-term loan, it will need to provide its investment project analysis. Bank employees, having familiarized themselves with it, must understand that what they are asked to give out a loan for will really make a profit and cover the costs. The project should maximize its value and effectiveness.
The document must contain an engineering assessment of the ideas and market demand, cost estimates, work schedule. You must also specify the profitability and the exact period for which the costs will be paid off. An environmental analysis (harmlessness of the project for the environment) will be required, as well as proof that the borrower will be able to implement his plan.
The bank must understand that the loan will have good collateral, the investment will pay off fairly quickly, the risk is acceptable, and the idea is original. If all the conditions are there, then a loan will be issued to the legal entity.
Short-term lending
In a nutshell, it’s worth mentioning about loans, the repayment of which is given much faster than in the case of the same mortgage. Long-term and short-term loans are equally in demand. Only now the second type of loans draws up a much larger number of people.
And that is consumer credit. They take it to solve the so-called "everyday" problems. If you don’t have enough to buy an apartment, or you need to make repairs, buy a technician, etc. Almost all banks provide consumer credit. But it is better to contact the state, since there are the most acceptable conditions. Issue it for a period of up to five years, at interest, which are quite acceptable (an average of 12-14% per annum). If you can find a surety, you can lower the rate. The maximum amount is 3,000,000 rubles. But how much money the bank is ready to take will be decided by financial analysts after a detailed review of the income statement, seniority, etc. If a person, for example, receives 60 TR per month, then 1 300 000 rubles for 5 years he will be able to issue.
Microloan
This is the last thing I would like to say. The most unprofitable option for lending, but sometimes only it can help out. To obtain a microloan, you only need a passport. Age is not important, if only it was 18. Amounts give small - 15, 20, 35 tr Sometimes more, depending on the conditions offered by the organization. But the interest is large - from 0.75% to 3% per day. Of course, taking a large amount for a month, you can go broke. But as an emergency, a good option. For example, before the paycheck a few more days, there’s no one to take, but a refrigerator, which a person has long laid eyes on, is suddenly sold at a 50% discount. In this case, there really is a saving - several thousand paid as a percentage of the microfinance organization will not “hit” the wallet very much, given the amount of money the borrower saved at a discount.