The popularity of bank lending to individuals is growing every year. Financial institutions offer their customers ever new products that are designed to meet the financial needs of borrowers. Often, even the fact of overpayment of interest does not stop an individual from obtaining a loan.
A citizen makes such a deal with a credit organization when his own funds do not allow him to achieve the desired goal. For example, buy an apartment or make repairs, in case of unforeseen circumstances. Banks offer various lending programs. The client can only choose the purpose, conditions and provide the necessary documents for registration. What loans are in banks, we will analyze in this article.
The relevance of modern loans
Banks willingly give loans to individuals, but under different credit conditions. Of course, you can independently accumulate the necessary amount, but it will take a lot of time. And inflation can depreciate the accumulated amount. Therefore, most often individuals choose the most convenient option to meet financial needs - a loan.
Types of loans for individuals by maturity
A loan agreement between a bank and a borrower may be concluded for a different time period. Depending on this, the following types of loans are distinguished:
- Short-term, as a rule, the repayment period of such a loan does not exceed one year.
- Medium-term - from a year to 5 years.
- Long-term loans are provided for a long time up to 30 years (for example, a mortgage loan).
Form and currency
Considering the question of what kind of loans are, it is worth noting that they are:
In any monetary units:
Recently, loans have been issued, either in kind or in the form of a credit card. And if cash is most often issued by banks as part of targeted programs, then virtually any citizen can receive cards with a certain limit for various needs.
Special purpose
what are the loans? The largest group is the target. Some of the most popular include:
- Consumer - for various purposes.
- Car loan - to buy a new or used car.
- Mortgage - for the purchase of housing.
- Educational - for higher professional education or advanced training.
- Overdraft - a loan in which the money is transferred by the bank to a plastic card with interest compensation and for a short period.
- Trust loan - small amounts for a short period and for one document.
- Debt loan for urgent purposes.
Consumer loan
Most often, the money in the bank for this program is taken to repair or purchase household appliances, or other similar purposes. The name of the direction of lending speaks for itself. A loan is provided to meet the specific needs of an individual.
What are consumer loans? By maturity, the loan is medium-term. But there are times when a consumer loan is issued to an individual on a long-term basis - more than 50 months.
The conditions for obtaining a loan are: stable income, good credit history, the availability of collateral, etc. The longer the loan term, the greater the amount of overpayment.
The amount, compared with other programs, is not very large. But in terms of interest rates, there are more advantageous banking offers. This parameter may differ in different banks, depending on certain conditions, such as: the availability of collateral and guarantors, term, credit past, financial capabilities of an individual.
Consumer programs are in demand among customers, because the amount is given out without specifying a purpose, therefore, the borrower received the money and can dispose of it at its discretion.
Car loan
One of the types of targeted financing, issued exclusively for the purchase of a car. The loan amount is large, and interest rates are low. Which is more profitable compared to a consumer loan. There is an opportunity to reduce the rate even if you buy a domestic car, and not a foreign car. Of all the types of loans available, this is one of the most popular targeted programs.
By term - a medium-term loan, which is issued from 1 year to 5 years for a domestic car, and if a foreign car is purchased, the term is extended to 10 years.
When applying for a car loan, a prerequisite is the provision of the purchased car as a pledge to the bank at the time of loan repayment, as well as insurance of the life of the client, his health and the object of the contract - the car. Without these conditions, the loan will not be issued.
The bank may require the following package of documents:
- two identification documents - a passport is mandatory and the second one is a military ID or a driver’s license;
- a certificate from the military registration and enlistment office for men of military age who cannot for any reason serve in the army;
- income statement;
- birth certificates of children, if any, and others.
An accurate list of required documents will be provided by a bank employee, because each financial institution has a different one.
What are the loans for the purchase of housing?
A mortgage loan is issued for the purchase of any home. At the expense of credit funds, both an apartment and a private residential building can be purchased. Own square meters can be purchased through a consumer or mortgage program. The first option is suitable for those who already have a certain amount. The size of a consumer loan, as a rule, does not exceed 1 million rubles.
For those who have a minimum starting capital, mortgage lending is suitable. The amount is large, the term is long, and interest rates are minimal.
Before you take a mortgage, you need to evaluate your financial capabilities soundly, because the monthly payment is rather big. If an individual is unable to repay the debt under a mortgage agreement, then the housing will go to the bank, and the citizen will be left with nothing.
A prerequisite is a down payment, which is about 15% of the total loan amount. Holders of state support in the form of maternity capital can transfer it to the first installment. You may need a surety to get it.
People who want to buy their own housing or expand the available square meters, often ask questions, what are the mortgage loans. Currently, banks offer the following programs:
- for secondary housing;
- real estate under construction;
- under construction of a private house;
- for the acquisition of land;
- on suburban real estate.
Education loan
One of the types of loans for individuals. It features a low interest rate and a deferred payment until graduation. In most cases, lending to such areas is carried out at the expense of state support, as a result of which the interest rates of the special education loan are reduced. It is important to note that state. Support is not available at all banks. The list of credited educational institutions is limited. It all depends on the cooperation of the bank and the educational institution. In some cases, you can draw up a debt agreement to study in another country.
Overdraft
Borrowers are often interested in what small loans are available at Sberbank and other banks for individuals with quick processing. Overdraft is one of them. If a salary is transferred to an employee on a bank debit card, and the next payment is still far away, while the amount commensurate with the salary is needed right now - you can borrow it from the bank by the same transfer to the card. Once the transfer from the employer to the card, the borrowed funds of the bank will become unavailable. The bank's benefit is in repaying the loan amount and interest from above. If the overdraft is not returned, fines and a subsequent denial of the loan are provided.
Trust loan
Gaining popularity among customers. The loan is inappropriate, therefore, the bank can not be informed about the intentions, for what needs money is issued. The amount of the contract is small, interest rates are not the highest. You can get a trust loan with only a passport.
A loan is beneficial if there is no time to collect the necessary documents and a small amount is needed.
Loan for urgent purposes
Another type of trust loan. It is issued without guarantee and without collateral. It is issued quickly - about 5 minutes, and only by passport, no other documents are required. Bank risks are offset by high interest.
The best offer
It’s not enough just to know what loans are, it’s important to be able to choose the best loan options for yourself. Indeed, one way or another, the money received will have to be returned, and the amount of the return will exceed the amount issued by the financial institution.
It is definitely impossible to determine which loan is the most profitable for an individual for several reasons:
- different purposes of lending;
- different bank conditions;
- validity period of a debt agreement and so on.
If the borrower takes a loan for certain purposes, for example, to buy a car, then a suitable loan is suitable - a car loan, for a house - a mortgage loan.
In the case when you need an insignificant amount, but requiring urgent receipt, you can get a trust loan or a loan for urgent purposes.
For an individual who does not want to devote a bank to their plans for spending borrowed funds, a consumer loan is intended. To pay for professional education, a client can also arrange a special loan at a bank with which his university collaborates.
Before you go to the bank, you need to collect information about what kind of loans there are in this organization, the conditions for their issuance, interest rates, current shares, documents necessary to complete a debt agreement.