Where is it more profitable to get a cash loan? Types of consumer credit

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

When there is an urgent need for money, and relatives and friends cannot help, the question immediately arises of where it is more profitable to take a cash loan. Which institution to choose: a bank or a CPC, a pawnshop or an MFI? The future borrower should soberly assess his strengths and advantages, because in the end, it is these criteria that will make it clear where to get a profitable cash loan.

What is consumer credit

A consumer loan is money that a bank or other credit organization issues to a borrower. The issued amount of money must be returned in monthly installments, with the payment of mandatory interest for the use of other people's funds.

Consumer loans are divided into several categories. We'll take a look at them now.

By type of lender

Wondering where is the best place to getcash loan - in a bank or in a credit and consumer cooperative, let's try to find the answer. That is, the lender can be not only a bank.

By type of targeting

Bank loans are divided into receiving money for the purchase of a specific product or service. This is a targeted loan, which is characterized by more favorable conditions: a reduced annual rate, flexible terms for its repayment, as well as the opportunity to receive a state subsidy (take advantage of obtaining a targeted education loan with state support). The borrower, when applying for a targeted loan, does not receive money in cash, they are transferred directly to the supplier of the goods or service in a non-cash form.

A non-purpose loan, on the contrary, involves the receipt of cash, which can be used at your discretion, and not to provide a credit institution with a report on credit funds issued to the borrower.

By type of collateral

Loans issued may be backed by collateral, such as collateral, or a surety agreement. Property (movable and immovable) can act as collateral. In the event that the borrower has financial circumstances due to which he will not be able to repay the loan received, the bank will take away his property, which is pledged. If there is a guarantee agreement, then when the borrower is unable to repay the loan, this obligation will be assigned to his guarantor. With collateral, the annual percentage is lower than without it.

Unsecured loans, or, in other words, blank loans, are issued by the bank only to the category of borrowers whohave a steady income and credibility in credit history. The amount of disbursed funds in this case is within the limits of the bank's existing own funds, but with a higher annual rate.

By type of borrower

This category, in turn, is divided into several groups. For example, families of young people under the age of 30 are provided with a consumer loan with state support. Such a loan can be targeted (mortgage, car loan) or universal (non-targeted).

When considering the following population group, we get an answer to the question of where it is more profitable to take a cash loan for pensioners. Consumer loans issued by the bank to pensioners are based on a stable source of income in the form of a pension. To be able to use this type of loan, it is necessary to comply with a prerequisite - the pensioner-borrower must work. Receiving a pension and having a job will allow the pensioner to get cash on more attractive credit terms.

Confidence type of loan - applicable to borrowers with a positive credit history and applying again to the lending bank. When applying again, the borrower will only need to go through the minimum formal procedure, after which he will immediately be provided with borrowed funds.

By repayment type

There are two ways to repay the received loan.

Standard - installment payment. Represents equal amounts of payment, whichpaid monthly or quarterly. The payment amount can be fixed or variable.

One-time - consists in making a lump sum of funds on a certain date specified in the loan agreement.

Terms and Conditions

Lump-sum payment - issued to each capable borrower. This type of loan is the most popular. The bank considers the application of each borrower individually, and the amount of funds issued is calculated on the basis of solvency.

Renewable payment, it is also revolving, is to issue the borrower not the entire loan amount at once, but in a gradual transfer over a specified period of time. The positive aspect in this case is that the borrower can be sure of receiving the amount of money that he indicated in the application.

By timing

Where is it more profitable to get a cash loan in Russia, given the economically unstable situation? Today, Russian banks, providing loans to the population, conventionally divide them into short-term, where the repayment period is less than a year, and long-term, above this mark. Short-term loans are issued for a fixed period (usually not exceeding 12 months) or on demand. Then, due to the absence of a fixed period for repaying the loan, the bank has the right to require the borrower to repay the debt at any time.

Getting a consumer loan from a bank

To receive credit funds canapply for persons who have reached the age of 18 (or 21, this threshold is set by a banking institution) and not exceeding the threshold of 70 years.

Each bank independently establishes the requirements applicable to those wishing to receive credit funds. But there is a universal requirement for all banks - that the borrower has a stable source of income. The source of income is wages. Also, the borrower can inform the bank about the availability of alternative sources of income, for example, income from the rental of property (an apartment, garage or other area) or dividends from securities. Such sources will need to be documented.

The documents provided are a civil passport and mandatory permanent registration in the region where the bank is located. A certificate stating the amount of the borrower's salary and a copy of his work book will also be the necessary documents to receive money. To obtain a non-targeted loan, the bank may ask the borrower to provide additional documents: a military ID, a certificate of marriage/dissolution of marriage, documents for collateral.

If the borrower falls under certain banking factors, this can significantly reduce the annual interest offered by the bank and speed up the application process:

1. The borrower is between the ages of 25 and 45.
2. A monthly transfer of the borrower's salary is made to the card of the creditor bank.
3. The borrower has a long work history.
4. The borrower has crystal credithistory.

Effective lending rate offered by the bank

In accordance with the current legislation, the bank is obliged to disclose the effective interest rate to the borrower. It is a combination of the annual interest rate plus possible commissions of the bank. It is at this rate that the bank will calculate interest for the use of credit funds, therefore, before signing the contract, you must familiarize yourself with this paragraph in more detail.

Bank fees

A commission is imposed on any loan issued by a bank. Commissions can be one-time, which the borrower pays only 1 time, for example, for consideration of a loan application, a commission for issuing a loan. If the borrower returns the loan funds ahead of schedule, a fee may also be charged for this.

Regular withholding fees are: annual credit card service, credit card cash advance. Taking into account all the commissions, the borrower must decide for himself where it is more profitable to take a cash loan.

Repayment of a consumer loan

There are two schemes by which you can repay the loan received: differentiated and annuity. By default, many banks use an annuity type of payment, which consists in making a fixed amount monthly. The annuity payment consists of two parts: principal and interest. Every month there is an increase in the amount in the payment, which is directed to repay the principal debt, and the amount of accrued interest, on the contrary, decreases. With suchmethod of repaying the loan, interest for its maintenance is charged on the remaining amount of the principal debt.

A differentiated way to pay off debt is to make different monthly payments, starting with the largest and gradually decreasing.

Any banking institution is not interested in a quick repayment of the loan taken, so banks set a certain temporary moratorium, during which the borrower does not have the right to repay the loan ahead of schedule. It usually ranges from 1 to 6 months. Or, some banks allow you to repay the loan ahead of schedule, but at the same time pay a commission in the amount of 1-12% of the amount that is paid ahead of schedule. Therefore, when wondering where to get the most profitable cash loan, you should prepare for various kinds of commissions and interest rates.

Credit and Consumer Cooperative (CPC)

If the borrower for some reason does not want to apply to the bank, then you can apply to the CCP. Let's try to answer the question of where it is more profitable to take a cash loan in Yekaterinburg. The CCP has more than 20 organizations in the city. These are Soyuz, Golden Fund, Assistance and others.

Credit-consumer cooperative is an alliance, which includes individuals and legal entities, united on a certain basis.

To qualify for cash, you must:

1. Become a member and pay membership fees.
2. Be an adult.
3. Have anyregistration in Russia.

Provided loan documents include:

1. Civil passport.
2. SNILS.
3. A certificate indicating the amount of remuneration of the borrower's labor (if the shareholder does not apply for a loan for the first time, or a salary or pension is transferred to his account in the cooperative for a long time, a certificate is not required).

The maximum possible amount of money that the CCP can issue should not exceed 10% of all loans issued, at the date of the decision to issue it.

The repayment terms are calculated individually for each shareholder, and are displayed in the payment schedule attached to the loan agreement.

After considering the CCP's requirements for the borrower, everyone decides on their own where it is more profitable to take a cash loan.

IFI

If the borrower cannot boast of having a normal credit history, and there are fears that neither the bank nor the CCP will give him money, you should contact a microfinance organization (MFI). Where is it more profitable to get a cash loan in Omsk? Which MFI is better to contact? Today in the city of Omsk there are more than 30 MFIs that are ready to cooperate with those who wish to take a cash loan.

Applying for a loan is simple: you must reach the age of majority and provide a civil document (passport). Each MFI has its own minimum and maximum cash withdrawal amounts. Return times also vary. For example, Express Credit is ready to issue up to 100,000 rubles at 0.4%day and with a return period of up to 24 months. And “Before payday”, on the contrary, they give out a maximum of 10,000 rubles, with a payment of 1% per day and with a return period of 20 days.

Here, the choice is up to the borrower, where to get a profitable cash loan.

Pawnshop

If the borrower does not want to wait for the decision of the credit institution and fill out the necessary applications and questionnaires, he can contact the pawnshop. Where is it profitable to get a cash loan in Moscow? At the pawnshop.

There you can donate jewelry made of gold and cutlery made of silver, precious stones, watches. There is a category of pawnshops that accept household appliances, cell phones and fur coats as collateral.

After considering the proposed credit organizations, each of the borrowers chooses the place where it is more profitable to take a consumer loan in cash.

Today in Russia there are many loan offers for any category of borrowers. Reading where it is profitable to take a cash loan (reviews on the Internet), there is no clear answer which credit institution is better to apply to. Each case is different and everyone should choose the best option for themselves.