2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The need for cash can come at the most inopportune moment. It is necessary to take a cash loan as quickly and on favorable terms as possible. And then the question arises: "Where to go?". Bank or Microfinance Organization (MFI)? From the point of view of profit - a bank, and as quickly as possible - an MFO.
Bank
When applying for a loan to a bank, a future borrower must provide a package of documents. The more documents the borrower can provide to the bank to confirm his prosperous status, the lower the annual interest rate will be, and the loan amount, on the contrary, will increase.
What do you need?
The package consists of:
- Identity document.
- Compulsory he alth insurance policy.
- Driving license or vehicle registration certificate.
- A foreign passport, it is desirable that it contains passport control stamps, indicating a trip abroad in the last 6 months.
- Certificates from the real place of work on income for the last 12 months, certified by the seal of the head of the organization andsignature.
- Copies of all pages of the work book or other documents that can confirm employment. This may be an extract from the work book or a certificate signed by the head of the organization, which contains information about the employee: his position and length of service. Or a copy of the employment contract. All pages of documents must contain the seal and signature of the head. The length of service from the current place of work must be 6 months, and the total length of service must be at least 12 months.
- Certificate of registration with the tax service (TIN).
To get a cash loan from a bank, you may also need additional documents:
- a military ID (for persons who have not passed the age limit of 27 years), and in its absence - documents that can confirm the presence of a deferment from military service;
- original and copy of marriage or divorce certificate;
- a copy of the certificate confirming the ownership of the real estate object.
In 2016, in order to get a cash loan, a beneficiary will have to choose a bank with the most attractive interest rates. For consumer loans, the rate will be from 22-38%, mortgages will come out from 11, 9-18, 8%, and a car loan will cost from 18-24%.
The package of documents submitted by the borrower will be checked by the bank's security service within 2-12 business days. After that, a bank employee will inform the future beneficiary of the decision by phone. The borrower will be able to repay a cash loan from 1 to 3 years, based onfrom the loan amount and the interest charged on it.
Almost any borrower with a good credit history can expect to receive the maximum possible loan. The amount received will depend on the borrower's monthly income and expenses and the type of collateral they can provide.
IFI
If the bank requires a complex package of documents that forces the borrower to collect a lot of certificates and make voluminous photocopies of various documents, then in order to borrow money from an MFI, a pile of documents is not required. And yes, it will be resolved much more quickly. The only negative is that even if the borrower collects a large number of documents confirming his solvency, the interest rate will still be higher than in a bank. In addition, the loan amount will be limited, especially if the borrower applies for the first time. And the loan amount will be issued only in rubles.
The list of documents that will be required for the application is very short and consists of only one item - an identity document.
It is possible that the borrower will be asked to provide a second document, but here he can choose from a list offered by the lender.
For a cash loan, the interest will be different, depending on which microfinance organization the borrower will cooperate with. The minimum interest rate for first-time applicants is from 0.8 to 2% per day. Accordingly, the annual percentage will also fluctuate: from 292 to 730%.
The borrower will be obliged to return the amount received in a fairly short period of time: from several weeks to six months.
If the borrower applies to the MFI not for the first time, then he can expect to receive a loan on other, more favorable terms. A repeated loan is characterized by a reduced rate, which is reduced by almost 2 times. Also, the borrower can count on an increase in the loan amount. Thus, the company tries not to lose a single client. Psychology comes into play here - in this MFI he is considered a serious and positive client when they give money on credit and provide bonuses, so why look better?
Credit card
Another way to get a loan is to get a credit card. According to statistics, more than one third of the Russian population uses a credit card.
What will be required for its design?
To apply for a credit card, you will need to collect an identical package of documents as for a consumer loan. When you first apply for a credit card, you should not count on a large credit limit. If the borrower is responsible for the monthly payment of the debt, as well as actively using the card, then his credit threshold will increase. Do not withdraw cash from a credit card. Firstly, this is not welcomed by the banking system, and secondly, the commission for issuing cash from a credit card can reach a threshold of 5% of the amount issued. And sometimes the commission may exceed the amount of money issued.
Interest, repayment period and other expenses
Finishing a credit card to get a cash loan will not take long: from 1 to 7 business days. Sometimes the borrower does not need to go to the bank to get it - the courier service will deliver the credit card to his home.
The average life of a credit card is 3 years. You will need to pay for maintenance annually. The amount will be calculated based on the type of card: Maestro or Visa, from the credit card limit, plus the costs incurred by the bank serving the client at the bank branch. The monthly loan payment will be 5% of the amount of the credit card limit.
Choosing a suitable place for lending is the prerogative of every citizen. You should correctly assess your financial capabilities, plan income and expenses, not make rash spending in order to repay debts on time and not worsen your credit history.
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