What is a consumer loan? Consumer loans are bank loans for individuals that are provided for any personal purpose - from the purchase of durable goods, to the payment of educational and medical services, repair and decoration works.
Often referred to consumer loans car loans and housing mortgage loans. It would be more correct to mean consumer credit only a deferment in the payment of goods and services or the issue of cash without specifying the 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 points of sale of retail financial services of a partner bank. The buyer contributes part of his own funds, and the rest is covered by the bank. As a result, the customer owes for the purchase not to the store, but to the credit institution.
Inappropriate consumer lending programs involve the issuance of cash at the bank's cash desk or by wire transfer to the borrower's account. The borrower may spend them at his 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 are issued for several days, and express loans are urgent loans that are issued in a few minutes or hours.
Who can take a consumer loan?
Citizens of the Russian Federation who meet the requirements for borrowers can count on consumer loans at Russian banks.
An important selection criterion is the age of the client. Credits are issued from the age of 21, but some banks are willing to work with younger categories of borrowers and issue money from 18 years. Education loans can be obtained at the age of 14, if registered as co-borrowers of adult relatives with stable income and official employment.
Maximum limit to which the borrower must fully pay off bank debt, limited by the age of retirement - 55 years for women and 60 - for men.
The requirements for registration and the actual place of residence of the potential borrower also differ. Some banks strictly approach the selection of customers and issue loans only with constant registration in the locality of applying for a loan. Others are more loyal and accept applications even with temporary registration in the territory of any region of the country. The term for temporary registration should not exceed the term for borrowing.
When evaluating the borrower, great importance is given to solvency.
Official employment and seniority of at least 6-12 months are required. Otherwise the bank will refuse.
Under what conditions can I get a consumer loan?
The size of the loan depends on the level of income, security and reputation of the borrower. With a pledge of real estate, the amount can reach 10 million.rubles, with a guarantee - 3 million rubles, without collateral it will turn out 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 certificates and additional guarantees.
The loan term for consumer borrowing programs ranges from 1 month to 7 years. An unsecured loan will not be issued for a period of more than 1-3 years, against a guarantee - for 3-5 years, with a pledge of movable and immovable property - up to 7 years.
Rates on consumer loans vary between 15-50% per annum, depending on the conditions of a particular bank and the situation of a particular borrower.
What documents will be required
Sometimes to conclude loan agreement enough passport, so express loans are provided. More often, additional documents are required to verify the applicant’s identity - driver’s license, international passport, pension certificate, certificate of TIN assignment, etc. Obtaining a consumer loan of more than 300 thousand rubles will not work without a statement of income and a copy of the work book. With a secured loan, documents are required for the guarantor or title documents for the subject of the pledge.
