What are loans? Cash loan. Express loan

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In the modern economy, credit relations are widely used. Therefore, it is necessary to know what loans are and what economic foundations they have. This is essential for the effective and correct use of loans and advances as a tool to meet financial needs.

Cash loan. What is this?

In a credit transaction, the subjects of relations are the lender (an individual, organization or bank that issues a loan without guarantors) and the borrower, an individual or legal entity who needs money, usually cash.

Consumer credit is the most widespread. Everyone knows what loans are, but not everyone will answer how to get them guaranteed. Basically, these loans are provided to citizens in the form of non-cash or cash. In the first case, these are loans to pay for the services of organizations or goods (for example, dental services, travel packages, etc.), in the second case, targeted loans.

Appointment of loan

Usually the main essence of the loan isan increase in the solvency of the population and, as a result, an increase in trade. The demand for credit is born with the demand for goods, on the other hand, the growth of loans increases the demand for goods. This effect is very noticeable in a market saturated with goods. Today, obtaining a consumer loan is one of the most popular and public bank operations. Absolutely any citizen from the age of majority (or the age set by the bank) can take out a loan by providing a work book, income statement and other documents required by the bank. You can get a consumer loan in cash without reporting your income. But there is less chance of approval of the loan by banks. Finding out what loans are commodity or targeted, it is worth remembering that the borrower only needs to provide a passport (regardless of whether it is a phone shop or a travel agency). But this type of loan can be obtained not from a bank, but from organizations that sell the necessary goods, and for a small amount. The bank issues a consumer loan to a borrower for serious needs (buying a car, paying for education) on certain conditions, for example, upon presentation of a certificate of income, a document on property ownership, etc. Each bank has its own conditions for issuing a cash loan.

Disadvantages of consumer credit

Consumer loans, no doubt, in addition to a number of advantages, have disadvantages. The average citizen can take out a bank loan to solve the problem of sudden expenses (urgent departure toanother city, car repair and other circumstances) or to realize other desires that seemed unrealizable: buying a laptop, home theater or vacation abroad.

However, when getting a cash loan, one must take into account all the pitfalls that are difficult to notice for an unprepared person.

Banks talk about low interest rates (averaging 15% per annum) and ideal conditions, but in fact, this can hide huge additional fees - up to 70% per annum.

Many banks charge huge commissions for repaying a loan before the due date.

The bank is required to report only the interest on the loan for the year. In addition to annual interest, there are other payments, for example, a commission for considering a loan, for issuing a loan itself, for drawing up a sale and purchase agreement, for maintaining an account. How to get a cash loan and avoid these pitfalls? The easiest and most successful way is to contact specialists who know all the financial and banking nuances and subtleties.

Cash loan as an emergency solution

Lending is a rather complicated type of relationship in the economy between a lender and a borrower. Borrowers who are consumers of banking financial services do not have enough experience in obtaining loan products, concluding insurance, contracts, and accounting for commissions. Therefore, a lot of rather important information remains unknown to them.

Everyone has had a situation where money is needed critically urgently. What they are for is not important: it can be a gift to a loved one, or buying a new one.household appliances, and the long-awaited trip during the holidays, and repairs in the apartment, as well as many other things, without which in the modern world - well, nothing. You can wait a very long time until the required amount is on hand. What to do?

It is in this situation that people go to the bank. A cash loan is ideal. This service allows you to quickly receive cash.

The question arises about what are loans and how to get them? Applying for this loan is a well-established and fairly simple procedure that takes only a day. The conditions for obtaining a loan are elementary, the number of documents is minimal: a passport of a citizen of the Russian Federation, registration, plus one more document of your choice. But here there is a significant disadvantage - the bank takes an inflated interest for such a loan.

Express loans

In Russia at the present time, getting an express loan is becoming more and more popular; this is one of the varieties of consumer lending. This type is beneficial for banks, so this method is practiced in any financial institution. This loan is suitable for individual entrepreneurs, managers or owners of commercial organizations, for individuals.

Essentially, this is a kind of consumer loan: an express loan is issued in cash to the borrower. It differs from others in that applications are processed quickly and few documents are required. Usually you need a passport or other identification document, an international passport, a pension insurance card and a driver's license. If the borrower, during the verification, meets the requirements of the bank, then the loan can be issued within a day. But do not be too happy to receive this type of loan. The bank issues it with the maximum benefit for itself, respectively, an express loan differs from others in a large amount of payments. Such loans are the most expensive of all consumer loans: the interest rate is much higher, because the bank checks the borrower minimally. This means that the bank has a huge risk of non-repayment of such a loan. Therefore, express loans are given only for a short period and a small amount.

If we take the procedure for obtaining an instant loan for a private entrepreneur, then it is no different from the usual one, and the loan ceiling is at the level of 500,000 rubles.

Features of express lending

1. The loan provided is always calculated exclusively in national currency and is always issued in cash.

2. The shortest possible time for making a decision on granting loans - as a rule, within one day.

3. The most simplified procedure for obtaining. A minimum package of documents is required, a loan can be issued fairly quickly, and there is no need for guarantors.

But such favorable conditions also lead to some nuances. The bank takes a serious step, providing a loan to a person, while having the most minimal information about him. Therefore, as a rule, banks compensate for this with a high interest rate, monthly commission, as well as fairly high requirements for the amountone-time payment for bank services.

Pros and cons of lending

As daunting as the notion of "permanently living in debt" is, lending has become an integral and often very convenient feature of our lives. This industry is developing noticeably so that the townsfolk borrow more and, as a result, return even more.

Nevertheless, such a bleak prospect still collides with an equally bleak reality of our day. Having an average income, the majority of such inhabitants would not have an actual chance to afford a sufficiently large range of goods necessary in everyday life. Unless you put it off the old fashioned way in a bank on a shelf. But rising inflation and price fluctuations in the market contribute very little to this, encouraging all the same to spend savings on themselves as the need arises. By the end of life, it is quite possible to save up, but alas …

This is why many people these days prefer to receive today rather than wait and endure indefinitely. The prospect of being in debt scares a person a little if there was a smart approach to business, and there are already brand new items in the house that brighten up or make our life easier.

The nuances of life in debt

Credit transforms life. You get a good reason to reorganize your daily life and work for the subsequent optimization of costs, with the expectation that part of the salary still has to be paid for a loan without guarantors. Hence, a direct incentive to work better and more efficiently in order to receive additional work payments or even a promotion. By the way, this is not illusory contributedthe very benefits for which loans are now hanging over you. They help to develop and make life easier right now, as well as improve living conditions - mobility, quality of rest, quality of he alth, and so on. This, of course, entails moral and psychological growth, since the foreseeable real increase in the quality of life always gives reason to be proud of oneself and once again rejoice at a new day. And if you don’t bother yourself with the fact that a huge percentage of hard-earned funds are taken away by those very incalculable debts, you can quite sincerely enjoy life and believe in your success.

Credit responsibility

But not everything is so rosy. If you return to the ground, then a loan is not only a new refrigerator here and now, it is also a huge responsibility. It is necessary to pay monthly the estimated amount of funds, which, in turn, must be earned. In addition, you first need to find out where to get a loan. There may be several options - banks, private credit organizations, etc. This entails fears for maintaining a job and wages, as an option - wear and tear of the body caused by excessive zeal and diligence at work. Stress is an integral part of any lending. The constant looped feeling that you constantly owe someone to someone is not pleasant, but if it also sits firmly in your head 24 hours a day, new things may no longer bring any pleasure.

It is possible to avoid such complications if you simply approach the issue with intelligence and due calculation. Notyou should overestimate your abilities. It also greatly simplifies the matter of choosing the right type of loan, of which, fortunately, there are a sufficient number in our time, and each is maximally adapted to the desired goals. It is very good if the received loan is spent on something that does not become obsolete and does not depreciate over time. For example, for housing. For housing, there is a special mortgage lending, designed for the average man in the street, but at the same time - for long periods and large amounts. A mortgage loan can leave you with the incomparable feeling of being in debt for 10-20 years, but then you become the real owner of this very home. It is much more practical and better than a permanent lease, and the investment may even pay off later.

How to properly understand the possibilities and types of lending? Creditagents are always ready to help with this. Turning to them, you get invaluable help and free advice.

Scoring, or why they don't give credit

Today in Russia, bankers are expanding the lending market. But the right path and approved plan have not yet been invented. It happens that a decent client is not given a loan or is given at high interest rates. And they can give only a part of the requested amount. Even worse, if such a situation begins to repeat itself in many banks, and the client cannot understand what the matter is.

Usually the client fills out a questionnaire that contains tricky questions. And the score for all answers is put by the machine using credit scoring. And it's useless to argue with him.

Scoring iscompromise in assessing the ability of borrowers to repay the loan. The credit committee cannot personally consider all applications, and the number of loans issued must increase. The scoring is based on a mathematical model that tries to determine the obligatory and solvent borrower. It happens that such borrowers do not receive a loan. The scoring system in Russia has just begun to operate, banks still do not know how to apply it as correctly as possible. It should be remembered that scoring is just a mathematical program, and it is not intended to humiliate the borrower. Its task is an acceptable amount of risk at the required level of lending. Banks are minimizing the risk of non-repayment, but in such a way that there is a profit from the scale of the business.

In general, banks have a habit of evaluating their ex-customers according to various target groups, from bona fide to unreliable payers. The position can change dynamically. Evaluation, as a rule, takes place on a dozen basic parameters, such as the presence of a car, the stability of staying at the same place of work, and a number of others. On such indicators, the corresponding scoring models are built. For example, if a borrower regularly changes his place of work, residence and often drinks, it is logical that giving him a loan is extremely risky.

Scoring methods

Banks usually use 3 different methods of building such models of the right customer. First, it is a self-built model based on the profile of the target borrower. A fairly convenient and objective model that allows you to fine-tune the system for the best performance and efficiency. In-secondly, it is the use of the scoring model of another bank. Plagiarism is plagiarism, but why can't you use someone else's, but already existing experience? As a rule, such models still have to be finalized to the level required by a particular bank, but most of the work has already been done and, importantly, worked out. And thirdly, this is the creation of an ideal client model. High requirements, which can only be met by a "gold" client. The bank only once again makes sure that this “golden” client actually exists and condescends to them to ask for money. Such a scheme is usually used only for certain types of loans, and not for entire banks, and guarantees good protection, but, alas, a high percentage of potential customers weeded out, which also guarantees good losses for the bank. But they are protected from scammers.

Domestic banks are still only learning in this field, therefore they still do not have significant experience in using such methods. As a rule, the accompanying risks are covered by rising interest rates on the loan, and the evaluation of the target borrower is increasingly based on credit history, if any. Such nuances hinder the development of demand among consumers. All these factors make a secured loan much more expensive than the same mortgage, for example.

Banks do not always work cleanly and transparently. Some wind up additional hidden commissions and interest, place in advertisements not quite real indicators on loans, and so on. This practice is very helpful in increasingbank budget, but is fraught with the fact that the bank does not need the credit history of its customers - most often they apply for a loan to other banks, having understood what's what.

It should not be forgotten that a loan refusal is not always the bank's fault. Clients often try to embellish or hide their real characteristics. Very often, refusals occur when loans received from other banks are discovered. As a rule, banks look at the integrity of each client by credit history, if any.