A commodity loan is a targeted consumer loan aimed at paying for various goods and services. The most popular areas are registration using credit means of mobile phones, household appliances, computers and furniture. Payment for services is also included in this category. For example, installation of plastic windows, various types of repair work, services of tour operators. Almost every more or less large trade organization prefers to enter into mutually beneficial cooperation with banking institutions and provide a commodity loan.
Most often, bank representatives are located in the seller’s territory and are involved in processing applications, but sometimes the store employees themselves have the authority to carry out this procedure. In conjunction with banking products, borrowers are offered various related services: various types of insurance, credit cards and other services.
Loan rates
This type of loan has the highest interest rates. For some types of goods, interest can reach 90% per annum. This is especially true for mobile phones. Inflated rates are quite logical due to the high risk of debt default. Often this type of loan is issued by the so-called resellers for subsequent resale for the purpose of profit. Subsequently, these individuals do not make monthly payments. Since mobile phones are the most liquid goods that can be sold quite easily, high interest rates are set for this category.
Often, stores together with banks develop special offers, as a result of which a commodity loan is provided without paying interest. This type of loan can be called an installment plan. In this case, the bank sets the minimum rate, and the store makes a discount on the goods in the amount of full overpayment. As a result, the end consumer receives the desired thing or service in installments.
How is registration done?
To obtain this type of loan, the borrower, having decided on the goods, together with the bank representative or authorized store employee fills out an application for a loan. A passport is required for this. The rest of the package of documents depends on the requirements of a particular bank. Usually they are required to present a second document (for example, a passport, rights, a compulsory medical insurance policy and others), but some banks are willing to provide a commodity loan only with a passport.
Filling out the questionnaire represents the answers to some questions regarding the life and financial situation of the prospective borrower. The most important are job and wage information. After filling out the form, it is sent for consideration, which takes no more than an hour. If approved, the procedure for signing documents. The bank never explains the reasons for the refusal.
How to pay a loan and how to find out a loan debt?
Payment is made monthly by crediting a fixed amount to the credit account. The amount and date of payment can be seen in the payment schedule, which is included in the package of documents on the loan. The documents always indicate the date of debiting funds from the account, payments should be made at least three days before this date, taking into account the time of transfer of funds. Day to day payments come only when paid at the branches of the creditor bank. The longest term of transfer by mail is up to 10 days.
If payment is not received on the appointed day, then the bank assigns a fixed amount of a fine for the fact of debt formation, and then interest is accrued daily on the amount of debt. An overdue loan leads to the borrower getting into the black list, which negatively affects his credit history and makes it difficult to obtain any type of loan in the future.