Consumer credit without collateral - what does it mean, features, interest and feedback

Often there are times when money is urgently needed, and there is no collateral. And even more so, considering that almost every citizen now has at least the smallest loan, it is also problematic to find a surety. One thing remains - to apply for a loan without collateral. Consumer credit without security - what does it mean and what are its features?

Definition

A consumer loan without security is understood as a loan without the provision of collateral and a surety. What are consumer loans without security? Borrowed funds can be spent for any purpose at their own discretion. It can be a repair, the purchase of things or equipment. Such loans are suitable when money is needed urgently.

To such credits it is possible to carry:

• credit cards;
• Credit in cash or on a settlement account;
• Unsecured loan in points of sale for the purchase of goods.

Demand

Financial organizations have the following requirements for their borrowers:

1. The presence of a permanent registration in the region where the financial institution is located. Some banks may allow temporary registration.
2. The age of the borrower varies from 18 to 70 years. Again, the higher the age, the more likely that the bank will require security. Therefore, it is optimal in this case to take loans up to 60 years.
3. The presence of a permanent job and an official source of income.
4. The length of service must be at least one year, and at the last workplace - no less than six months.
5. For men, a loan can be granted upon presentation of a military ticket.
6. If you provide contact information, you must have an additional phone.
7. If the credit involves accounting for the family income, then the requirements for the other spouse will be similar.

Documentation

Naturally, different banks require different types of documents from borrowers. But basically it's a standard set, which includes:

• Application for a loan;
• The document proving the identity;
• The second document, which can confirm the identity of the borrower (this is either SNILS, or passport, or driver's license);
• INN;
• A copy of the work;
• Reference 2-NDFL.

Some banks, in addition to the above documents, can request a certificate from the pension fund, a bank statement, a tax return (for a legal entity), and some only a passport and income statement to provide a consumer loan without security, although in the latter case the amount will be small.

Conditions

The conditions offered by financial institutions vary considerably. For example, having a positive credit history and being a participant in a salary project, you can get loyal terms from the bank for a consumer loan without collateral. What does it mean? These are the minimum interest rates, a long crediting period, the maximum loan amount. By the way, the interest rate can be reduced if the borrower signs an additional service in the form of accident insurance or loss of work.

Let's consider the main conditions for loans without collateral.

The client should be prepared for the fact that banks very carefully consider applications for loans and are demanding of future borrowers. If an organization has any doubts, it is likely that it will refuse to work without bail or collateral.

There are banks that practice informal security when the collateral provided is taken into account, but the credit terms are not affected. This option is usually used when the value of collateral is small, and the guarantor does not meet the requirements of the bank.

Review of banks

Let's look at the example of different banks, what is a consumer loan without security. The review of banks will consist of the largest and well-known financial organizations.

Having considered the main proposals of the largest banks, one can understand what consumer credit without security means. Sberbank, for example, offers good amounts for an acceptable period, but a low interest rate will be established only if the maximum package of documents is submitted. Other organizations overstate rates. And all because there is no security.

And yet, this type of lending has a number of advantages for both the bank's client and the financial institution itself.

Advantages and disadvantages for the borrower

Consumer credit without collateral - what does this mean for a bank customer? Let's consider the main advantages and disadvantages of this method of granting a loan.

The positive sides include the following:

• The opportunity to take a loan without providing a mortgage and a guarantor;
• Minimum list of documents;
• Fast terms of consideration of the submitted application;
• Simplicity of concluding a loan agreement;
• Lack of control by the bank for the use of funds.

The negative side can be attributed to the following:

• Without security, the interest rate is much higher;
• High fines and penalties for late payments and non-fulfillment of credit obligations;
• The amount of a loan without collateral is much lower than with it;
• The bank may reduce the terms of the loan if it deems it necessary;
• The borrower is liable to the bank for the loan with all of its assets.

Pros and cons for banks

Provide consumer loans without collateral - what does this mean for banks? On the one hand, the advantage of such a loan is the demand for the program among the bank's clients, high income from the loan itself and a simplified scheme for reviewing applications. On the other hand, there are disadvantages. These are rather high risks and difficulties in recovery in case of default.

Nevertheless, this product is offered because of high incomes for the financial organization.

Reviews

According to the opinions of customers of different banks, a consumer loan without collateral is a convenient tool when money is needed, and there is no place to take them. Convenience is not only in the rapid response of the bank to the application, but also in the ability to repay the loan ahead of schedule and vary the monthly payment (in the larger direction).

Not everyone, of course, carries in the design of the loan. There are dissatisfied customers. But, as it turns out, these are borrowers who have a bad credit history, or customers who can not submit any of the necessary documents.