Consumer lending is currently the most common program in the vast majority of banking organizations in the Russian Federation. It is represented by many variations and can be implemented in various conditions. For those who are planning to obtain a consumer loan, the types of this service are extremely important. Indeed, for different amounts and objectives, various interest rates are provided. Loan terms also vary. Today, this type of program can be organized in a wide range of interest rates: from 12 to 70% per year.
Consumer loan: types
In total, these programs can be divided into two main categories:
- Target loans are loans issued by banks for the achievement by the customer of a specific objective, stipulated and prescribed in the contract. This can be a big overhaul, getting an education, a planned vacation, and so on. At the same time, the financial institution receives the authority to check where the issued funds go. In some cases, a person may not even see the cash, as the bank will immediately send it to the account of the company providing the service: clinic, university, hotel, etc. If you are able to take the target consumer loan, the interest rate on it will be low and the payment terms will be very soft.
- Unmarked – these are loans without a certain destination. These include express loans, which can be obtained with only 2 documents. The interest in this type of loan is always high and can reach 70%. The maximum term for obtaining an express loan is usually 6 months, although by law it can be taken for a year and a half. In case of receiving an inappropriate loan, the bank does not participate in the customer’s future life, but requires timely payment of the contents of the loan program.
Package of documents for reception
You need to gather a certain set of features for registering services like consumer credit. The types of these loans and their diversity allow you to choose a program that is fully consistent with the borrower’s skills and expectations. To conclude a contract, you must provide the following:
- passport of a citizen of the Russian Federation with a valid residence permit in the immediate vicinity of one of the bank’s branches;
- a second document that can help identify the borrower’s identity;
- signature of the guarantor;
- collateral object.
Points in getting a loan
You can get a loan if you only have the first two points, however, the greater the amount of documents and guarantees, the greater the amount of money, longer and milder conditions. If a collateral and collateral is provided, it is very simple to obtain a consumer loan. The interest in this case will be the lowest: from 12 to 15%. If the guarantee is a property: house, apartment or land, the amount that can be borrowed is limited to 10 million dollars.
Whether to repair or buy a car If a large amount of money was required, a consumer loan can always help. The types of this service allow you to use it to solve a wide range of different life situations: from buying things you like to relaxing abroad.