What is a targeted and non-targeted loan?

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

Credits have firmly entered the life of almost every person. By applying for a bank loan, you can solve many problems or just go on a trip. You can get financial support from the bank for any needs. For this reason, loans are divided into targeted and non-targeted loans.

Types of loans

Loans have been in great demand among people around the world for quite a long time. Loans are of various types. But in general, they can be divided into two main groups:

• non-purpose loans;
• Targeted loans.

In turn, they can also be divided into several types. So, the target ones are:

• mortgage;
• car loans;
• study loans;
• purchasing goods or equipment in a store.

Misuse of credit should include:

• any of the consumer loans;
• microloans;
• credit cards.

Who can receive?

Any citizen of the Russian Federation whoreached the age of majority. In addition, the potential borrower must meet the other requirements of the bank. These include:

• Mandatory presence of a permanent place of registration in one of the regions of Russia.
• A potential borrower must have a regular source of income. It is desirable that it be documented by a certificate of income in the form of 2-NDFL. It can be obtained from the accounting department at the place of work.
• At the current position, the future loan client of the bank must work for at least three calendar months;
• When filling out an application for a non-targeted loan, it is necessary to indicate a valid mobile phone number. It will be necessary to connect bank employees with a potential borrower.

Target loan

This type of financing is called a loan, in the issuance of which funds are allocated to the borrower by the bank for a specific purpose. Very often, when receiving this type of loan, the client pays the initial amount. For example, you can get any selected product in the store. The borrower pays a small amount of its cost, and the rest is financed by the bank. The money is transferred to the store's account, and the client pays the allocated amount with the accrual of certain interest for the use of funds.

It should be borne in mind that the bank almost never issues a target loan personally to the client. It is transferred directly to the seller's account. With this type of loan, you can buy a car or an apartment, as well as pay for education.at the university.

The annual interest rate of this type of lending is one of the lowest. Often it also depends on the amount of the loan itself.

In cases where the purchased goods have a low cost, the interest rate can be increased and sometimes reaches forty percent. But when buying an apartment, house or vehicle, it will be many times less. So, a car can be purchased with a loan that has a rate of seven or ten percent. Mortgage interest rates average ten percent.

Unearmarked loan

This type of loan is the receipt of cash from a bank. In this case, the borrower can dispose of the allocated money at his discretion. The money can also be used to pay for tuition or a down payment on a mortgage.

The financial institution that issued a non-purpose loan will not control the borrower's spending of the allocated funds. At the same time, the date of making the monthly payment and its amount will be indicated in the agreement drawn up when applying for a loan. This schedule must be strictly observed, otherwise the bank will charge pen alties.

However, it is worth considering that such consumer loans have a very high interest rate. This is due to the fact that the bank must insure its risks. The average interest rate on this consumer loan is 25-30 percent per annum.

How to get a consumer loan?

UntargetedBanks offer loans to their customers all the time. But some offers may differ. So, in some banks it can be taken with just two documents. Other financial institutions offer to issue a non-target secured loan.

In the first case, the interest rate on the loan will be overstated. You can apply for a loan at a more favorable rate by providing a complete package of documents. Includes:

• passport of a citizen of the Russian Federation;
• state pension insurance certificate;
• salary certificate;
• copy of the work book, certified by the seal and signature of the employer.

Borrower must be over 21 years of age. In addition, a bank client must have a work experience of six months or more.

You can fill out the application itself at the bank office. You can receive money in your hands at the bank's cash desk or directly to your bank card.

The same procedure for applying for a loan is similar for a targeted loan.

General purpose loan secured by real estate

To get a large amount of money in one of the financial institutions for personal expenses, it is worth taking out a general purpose loan secured by real estate.

To do this, you should contact any bank branch with a certain package of documents. Includes:

• valid original passport;
• insurance pension certificate;
• certificate of wages issued by the accounting department at the place of work;
• copy of work book;
• TIN certificate;
• documents confirming ownership of real estate.

In addition, a potential borrower must meet all the necessary requirements of the bank. First of all, he must reach the age of majority. Many financial institutions set age limits from twenty-one to retirement. The potential borrower must have a regular source of income. It is desirable that it be documented.

It is worth carrying out the procedure for obtaining this non-purpose loan at the bank. Of course, you can apply online, but you still have to visit the bank office. There it is necessary to take the documents for the property left as a pledge.

It is worth considering that in case of default on credit obligations, the borrower's property becomes the property of the bank. It serves not only as a pledge, but also as a guarantor of the return of funds.

Untargeted loan secured by Sberbank

Sberbank of Russia offers its potential customers several options for obtaining a consumer loan. A non-purpose loan can also be obtained under various conditions and interest rates.

However, whatever lending option is chosen, the potential borrower must meet the requirements of the bank. They are not rigid. In order to apply for a loan, you must be in the age group from twenty-one years to sixty-five years. It is necessary, of course, to have a source of constant income. It is desirable to have a formal job. In addition, a prerequisite forobtaining a non-purpose loan from Sberbank is the presence of Russian citizenship, as well as a permanent place of registration in one of the regions of the country.

If these requirements are met, a client can receive a loan of up to 1.5 million rubles for a period of six months to five years.

In addition, you can reduce the interest rate and get the maximum amount if you apply for a general purpose loan secured by real estate at Sberbank. Such a loan can reach ten million rubles. Its amount is determined in accordance with the value of the pledged property.

But the maximum repayment period can be twenty years. The interest rate depends on the amount of the loan, but on average it is fifteen percent per annum.

Loan with a guarantor

If you need to get a non-purpose loan, but there is no way to pledge property, then you should contact the bank with guarantors.

They can be any individual who has Russian citizenship, as well as a permanent source of income. Like the borrower, he needs to present a passport and a certificate of income to the bank. It is worth considering that the age of the guarantor cannot be less than twenty-one years and more than sixty-five years.

In case of non-fulfillment of loan obligations by the borrower, the loan payment is transferred to the guarantor.

The loan amount in the presence of a guarantor can reach three million rubles. The interest rate in this case will be reduced by approximately one percent.

Target loan from Sberbank

You can also get a targeted loan from Sberbank. To do this, you must also comply with the requirements of the bank. They include:

• Russian citizenship and permanent place of registration;
• The age of the borrower must be at least eighteen years old, but not older than sixty-five;
• must have a permanent source of income.

The package of documents for obtaining a targeted loan is standard. However, depending on the purpose of the loan, additional paperwork may be required.

So, in order to receive a loan for education, in addition to a passport, you will need to present documents confirming enrollment in a university to the bank. Repayment of this type of loan may be deferred until the borrower graduates.

Mortgage

The mortgage lending program at Sberbank is considered one of the most profitable. The procedure for obtaining this type of targeted loan depends on the type of housing being purchased. It could be:

• Primary housing, that is, buying an apartment in a new house.
• Resellers. In this case, the house or apartment is bought from a private person.
• Building your own home.

To purchase their own housing, Sberbank is ready to provide its customers with a sum of money from three hundred thousand to eight million rubles. For residents of the capital and St. Petersburg, the amount can be increased to fifteen million rubles. But it is worth considering that the initial payment will need to be made independently. It must be at leasttwenty percent of the value of the purchased housing.

Term of mortgage lending can reach thirty years. In addition, insurance of purchased living space will be mandatory.

Sberbank offers one of the lowest mortgage rates. On average, it is 9-10 percent.