2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
It's no secret that credit is a special kind of consumption. Consumption is the ability to acquire a desired good or service. Currently, large purchases, including the purchase of furniture, appliances or other things necessary for life, are somehow connected with lending. Today, anywhere you can come across an offer to issue it in 5 minutes: furniture stores, equipment stores and even clothing shopping centers.
Types of consumer loans
First of all, it is necessary to note the classic type of loan, upon receipt of which the borrower receives cash at the cash desk and purchases the necessary goods. Such a loan product is sometimes referred to as a “standard loan” or an “emergency loan.”
The next type of consumer loan is money for vacation. In this case, the borrower takes money for a specific purpose - the purchase of a tourist voucher. Funds can be issued both in cash and in a non-cash way by transferring to the account of a travel company. The loan term is usuallyno more than a year. The listed types of consumer loans are issued according to two documents in a matter of minutes at any branch of the bank.
The next type of targeted loan is an education loan. In this case, the funds are transferred to the current account of the university by issuing an invoice indicating the total amount for the entire period of study. However, it must be borne in mind that it will not work for a minor to get a loan, you will have to turn to your parents for help. A loan for education differs from the usual one in that a deferred payment is formed on it. Thus, a student can study paying only basic interest, and, having received a diploma and got a job, pay off the main debt. The main loan burden will fall on him only after graduation.
Payments and types of fees for consumer loans
If we consider ordinary targeted loans, then annuity payments are very popular. The essence of this scheme is extremely simple: the entire amount is distributed over the entire term of the loan in equal shares. That is, if a loan is issued for 3 years, you will have to pay 36 monthly installments. Often there are loans with a differentiated interest rate. In this case, the loan amount will decrease with each installment.
In addition to payments, banks set mandatory fees for opening and maintaining an account, for SMS informing and other services specified in the loan agreement. Commissionsapply to all types of consumer loans. Currently, several hundred banks offer various conditions for consumer lending. It is very easy to get lost among such a variety, but there are several options to choose from.
Options for choosing the right loan product
The first way is the easiest. To do this, you need to contact a bank specialist personally. The second method involves self-acquaintance with the information on the bank's website, thanks to which all types of consumer loans will be studied with a detailed description of the conditions for obtaining and repayment.
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