A loan provided by the bank for the borrower for personal needs not related to commercial activities is a consumer loan. Information about consumer loans is on the Internet, advertising, news. Banks have developed a significant number of this type of product, and it is quite difficult to understand them.
Consider the main types of consumer loans.
Credit for urgent needs. This loan is the most universal, since the concept of “urgent needs” can be interpreted quite widely, from the purchase of the new Suzuki SX4 and allows the borrower not to indicate in the contract the true reasons for the need for a certain amount of money. Also, the bank does not require documentary confirmation of these funds. For example, you can contact the self -follyn in Moscow to take a loan secured by a car or apartment. It sounds dangerous, because I don’t really want to lay my car on bail, but responsibilities are a good sign in business and the world of money and financial relations.
A lump-sum loan is a type of consumer loan for a period of 1-2 years, designed for one-time purchases of low cost. Funds are provided by the bank and are repaid by the borrower not in parts, but at a time.
A renewable loan is a type of consumer loan that is provided for a certain period, but within the credit line. The renewable is convenient when the borrower does not know when he needs the money, but he has a guarantee that the bank will give them out when this will happen, since the decision to open the credit line is already made by the bank.
The consumer credit on real estate is issued for the acquisition of real estate, but it is not, unlike a mortgage, the subject of the pledge. In this case, the assumption of the loan is previously acquired real estate or guarantee of third parties.
A confidential loan is designed for borrowers with a positive credit history. For such persons, the loan is issued on favorable terms: with a lower interest rate, the absence of one -time payments for consideration of the application. Sberbank of Russia offers such a product for a period of 3 months to five years with a rate of 20% per annum. You can find out more about the “trust” on the Sberbank website.
Well, the last type of consumer loans is a loan secured by material values or a pawnshop is provided to the borrower without evaluating his solvency. The provision of consumer loan is the material value provided by the security, and the amount is 70-90% of their assessment value.