When there is an urgent need for money and relatives and friends cannot help, the question immediately arises where it is more profitable to take out a cash loan. Which institution should be chosen? Bank or PDA, pawnshop or MFI? The future borrower must seriously assess its strengths and benefits because ultimately these criteria make it clear where to get a profitable cash loan.
What is a consumer loan?
Consumer credit is money that the bank or other credit organization issues to the borrower. The money spent must be returned in monthly installments, with mandatory interest payable on the use of other people’s money.
Consumer loans are divided into different categories. Now we will look at them.
Looking at the next population group, we get an answer to the question of where it is more profitable to take out a loan in cash to pensioners.
Consumer loans issued by a bank to pensioners are based on a stable source of income in the form of a pension. To qualify for this type of loan, you have to meet one requirement – the retired borrower has to work. If you draw a pension and have a job, you can get a pensioner on more attractive loan terms.
Trust type – applies to borrowers who have a positive credit history and re-apply to the lending bank. If you reapply to the borrower, it is sufficient to go through a minimal formal process, after which borrowed funds will be made available immediately.
According to the provisions of the provision
Flat rate – issued to all eligible borrowers. This type of loan is the most popular. The bank reviews each borrower’s application individually and the amount of funds spent is calculated based on solvency.
Renewable payment is about not giving the borrower the entire amount of the loan at once, but gradually transferring it over the agreed period. The positive point, in this case, is that the borrower can be sure of receiving the amount of money that he indicated in the application.
By type of terms
Where is it more profitable to borrow money in Russia given the economically unstable situation? The Russian banks, which grant loans to the population, today conditionally divide them into short-term ones, where the repayment period is less than a year and long-term above this mark.
Short-term loans are granted for a certain period (usually not longer than 12 months) or on request. In the absence of a fixed term for repayment of the loan, the bank is entitled to request the borrower to repay the claim at any time.
Get consumer credit from a bank
Individuals who have reached the age of 18 (or 21 years old, this threshold is set by a banking institution) and do not exceed the threshold of 70 years can apply for a loan.
Each bank sets independent requirements for those interested in credit. However, there is a universal requirement for all banks – the borrower must have a stable source of income. The source of income is wages. The borrower can also inform the bank about the availability of alternative sources of income, such as income from renting real estate (apartment, garage or another area) or dividends from securities. Such sources must be documented.
As the documents provided are a citizen passport and a mandatory permanent registration in the region in which the bank is located. A certificate informing the hirer of the salary and a copy of his workbook is also necessary documents to receive money. To obtain an unintended loan, the bank can ask the borrower to provide additional documents: military ID, marriage certificate/divorce certificate, security documents.
If the borrower falls under certain bank factors, this can significantly reduce the bank’s annual interest rate offer and speed up the registration process:
- The borrower falls within the age range of 25 to 45 years.
- A monthly transfer of the borrower’s salary to the lender’s bank card.
- The borrower has a long professional experience.
- The borrower has a crystal credit history.
Effective loan interest offered by the bank
In accordance with applicable law, the bank is obliged to inform the borrower of the effective interest rate. It corresponds to the total annual interest rate plus any bank charges. At this rate, the bank calculates the interest in the use of credit. Before you sign the contract, you need to familiarize yourself with this item.