Consumer credit: types and features

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

Consumer lending is currently the most common program in the vast majority of banking organizations in the Russian Federation. It is represented by many variations and can be implemented under various conditions. For those who are going to apply for a consumer loan, the types of this service are extremely important. After all, different interest rates are provided for different amounts and purposes. Loan terms also vary. Today, this type of program can be issued in a wide range of interest rates: from 12 to 70% per annum.

Consumer credit: types

In total, such programs can be divided into two broad categories:

1. Target loans are loans that are issued by banks to achieve a specific goal by the client, specified and prescribed in the contract. It can be a major overhaul, education, planned vacation, and so on. At the same time, the financial institution receives the authority to control where the issued funds go. In some cases, a person may not even see the cash, as the bank will immediately send it to the account of the company providing the service: clinic, college, hotel, etc. If you manage to get a targeted consumer loan, the interest rate on it will be low, and the payment terms will be very soft.
2. Untargeted - these are loans without a specific purpose. These include express loans, which can be obtained with only 2 documents. Interest on this type of loans is always high and can reach 70%. The maximum term for obtaining an express loan is usually 6 months, although by law it can be taken for a year and a half. In case of receiving a non-purpose loan, the bank does not participate in the client's future life in any way, but requires timely payment for the content of the loan program.

Package of documents to receive

You need to collect a certain set of official papers to apply for a service such as a consumer loan. The types of these loans and their variety allow you to choose a program that fully meets the borrower's capabilities and expectations. To conclude a contract, he will need to provide the following:

• passport of a citizen of the Russian Federation with a valid residence permit in the immediate vicinity of one of the bank branches;
• second document that can help identify the borrower;
• guarantor's signature;
• collateral object.

You can get a loan if you have only the first two points, but the more documents and guarantees, the greater the amount of money, the longer the term and the softer the conditions. If a collateral object and a guarantee are provided, then it is very simpleget a consumer loan. Interest in this case will be the lowest: from 12 to 15%. If the pledge is a real estate object: a house, an apartment or a land plot, then the amount that can be borrowed is limited to 10 million rubles.

If it took a large amount of money to repair or buy a car, a consumer loan can always help. The types of this service make it possible to use it to solve a huge range of different life situations: from buying a thing you like to a vacation abroad.