most popular services offered by commercial banks - is consumer credit individuals.And no wonder, since this type of lending can bring good income for financial institutions of our country.This is due to significant interest rate.So, for a year, taking into account commissions and interest consumers are overcharged by 40% of the loan.
Consumer credit to individuals, some characteristics
Market - individuals hired workers.Credit issued only wage workers.The loan amount depends on the size of the last salary.Even if the bank's advertising states that theoretically you can get a significant amount of cash, little credit will be calculated only on the basis of your income.Basically, the maximum loan amount is about three salaries.Subsequently, if the payer in time to fulfill its obligations, the bank may raise the limit to six average monthly salaries of the borrower.
The interest rate on consumer loans to individuals is much higher than other loan products.This is due to high credit risk: in fact, this type of loan is not secured by collateral.In addition, there is always the risk of dismissal from work of man, and then the emergence of overdue payments.No such thing as a low consumer credit - is a marketing ploy financial companies.With low interest rates it will be unprofitable for the bank.
It is advisable to choose the lending bank is well acquainted with the conditions of lending.There are cases that can be heard in advertising only one interest rate, but in reality there is a monthly commission, insurance and so on.
Checks whether the bank when you make a loan the borrower?
Every bank is trying to play safe and reduce their risks.So when borrowers are requested to issue consumer loans to individuals, the bank carries out a comprehensive review.
primarily verified through borrower credit bureau (CRB).If you have already taken a loan, the CRA will issue a request to the bank information on its repayment, as well as generate your rating.From this information depends on the further decision of the bank lending the potential borrower.
Each bank approach to credit history is different, some take the information over the past two years, the other for five years.
We would like to mention consumer credit without inquiries on incomes.The amount of such loans is much lower than with the help of, and the rates - much higher.Therefore, use of such credits is recommended only in extreme cases.
Points to consider potential borrowers
- Before you take out a loan, you need a good think about this moment.Without special need is not worth it to take.
- Pay attention to what is comfortable payment on the loan, which does not exceed 25% of your net income.In this case, the borrower will be free money, intended for other purposes.
- Do not take the credit "to the eyeballs", since a change in your salary down will result in loan delinquency.
- Watch your credit history, because you never know what can happen in life, so take care of the future.
