The lending industry is wide and capacious. Some banking products are well publicized and are popular with customers, while others know about others. This type of loan, as a consumer, is now the most popular and in demand in our country, but despite this, many people still have not learned how to choose it correctly or use it correctly.
Problems with these loans arise, as a rule, after the
conclusion of the contract. It would seem that its understandable and simple conditions suddenly turn into unpleasant surprises for the bank's customers. No matter how easy consumer credit may seem, repaying it is not an easy task.
Consumer loan conditions, its possibilities and disadvantages
What should I look for when concluding a loan agreement? There are several key aspects that need to be carefully studied:
- interest rate. Can it change during the course of the contract, on which it depends;
- one-time and monthly commissions, their size, accrual specifics;
- the need for collateral or surety. Consumer credit, the repayment of which is better secured, usually has more favorable conditions;
- early repayment of debt, change in monthly payments. How does the cost of a loan change from these aspects.
The last point should be examined in more detail. It is here that misunderstandings and problems often occur, because customers do not clearly understand how it is better to pay a loan. If a commission or a penalty is provided for early
repayment of a loan , you need to weigh well whether it is beneficial in principle. The money you have now can be used differently without breaking the loan agreement.
The same applies to monthly payments. The most beneficial consumer loan is the one where interest is accrued on the remaining amount. In this case, it is beneficial to pay not a specific amount indicated, but to increase it yourself. But only when it is stipulated by the contract, and no additional penalty is charged.
Pitfalls in the world of lending: what you should pay special attention to
Consumer credit, the repayment of which is secured by a guarantee, is more reliable for banking organizations. But for the guarantor, he is an additional source of unrest. In case of problems with repayment of the debt, the obligations fall equally on him. Also, the fact of guarantee is taken into account when applying for a loan already at the surety.
Hidden commissions and payments are a headache for clients of many financial organizations.
Consumer loans from Sberbank or other large banking institutions have simple and understandable conditions, but there are many cases of misunderstanding. For example, after closing the contract, you must take a written confirmation of this from the bank. The client may not specify the amount of the commission, and it will remain in the form of a small debt on the account, which can eventually grow into a huge debt. Therefore, a consumer loan, the repayment of which you plan to produce, needs to be studied from all sides, specifying all the details and nuances.