What is consumer credit?
What is a consumer loan? Consumer loans are bank loans for individuals, which are provided for any personal purposes - from the purchase of durable goods to the payment of educational and medical services, repair and finishing works.
Often referred to as consumer loans auto loans and housing mortgage loans. It would be more correct to mean by consumer lending only a delay in payment for goods and services or cash withdrawal without specifying a purpose. The bank provides the amount to the seller of the necessary thing or directly to the borrower, and the borrower pays interest on the use of money.
Types of consumer loans
Target loans are issued on the territory of a trade organization at the points of sale of the retail financial services of a partner bank. The buyer contributes part of its own funds, and the rest is covered by the bank. As a result, the customer must pay for the purchase not of a store, but of a credit institution.
Non-earmarked consumer lending programs involve the issuance of cash on hand or by bank transfer to the borrower's account. Spend their borrower may, at its discretion. Such loans, depending on the type and required collateral, are divided into collateral and unsecured, secured and unsecured.
Depending on the speed of processing the application and the provision of funds, standard consumer loans issued within a few days, and express loans - urgent loans that are issued within a few minutes or hours, are allocated.
Who can take consumer credit?
Citizens of the Russian Federation who meet the requirements for borrowers can count on consumer loans in Russian banks.
An important selection criterion is the age of the client. Loans are issued from the age of 21, but some banks are willing to work with younger categories of borrowers and issue cash from the age of 18. Credits to pay for education can be obtained at the age of 14, if you register adult relatives with stable income and formal employment as co-borrowers.
Maximum limituntil which the borrower must fully repay the debt to the bank, is limited to the retirement age for old age - 55 years for women and 60 for men.Not all banks are so categorical and are ready to offer pensioners the opportunity to use borrowed funds until they reach 65-70 years, regardless of gender. Some banks issue loans of up to 75-80 years of age with additional security in the form of life and health insurance.
The requirements for registration and the actual place of residence of a potential borrower differ. Some banks are strictly suited to the selection of clients and issue loans only when they are constantly registered in a settlement for a loan. Others are more loyal and accept applications even with temporary registration on the territory of any region of the country. The term of temporary registration shall not exceed the borrowing period.
In assessing the borrower, great importance is paid to solvency.It is important that the official income is enough to cover the debt obligations to the bank, taking into account the accrued interest and fees for servicing the loan.Be sure to formal employment and work experience of at least 6-12 months. Otherwise, the bank will refuse.
What are the conditions for obtaining consumer credit?
The size of the loan depends on the level of income, collateral and reputation of the borrower. When real estate is pledged, the amount can reach 10 million rubles, with a guarantee - 3 million rubles, without security it will be possible to take no more than 300-900 thousand rubles. There are exceptions, the same Sberbank of Russia gives current customers up to 1.5 million rubles for 5 years without references and additional guarantees.
The loan term for consumer loan programs ranges from 1 month to 7 years. Unsecured loans will not be issued for a period of more than 1-3 years, on bail - for 3-5 years, with a pledge of movable and immovable property - up to 7 years.
Rates for consumer loans vary in the range of 15-50% per annum, depending on the conditions of a particular bank and the situation of a particular borrower.
What documents are required
Sometimes a passport is enough to conclude a loan agreement, so express loans are granted. More often, additional documents will be required to verify the identity of the applicant - a driver's license, passport, pension certificate, TIN certificate, etc.Get a consumer loan of more than 300 thousand rubles will not work without a certificate of income and a copy of the workbook. With a secured loan, you need documents on a guarantor or title documents on the collateral.