Consumer loans: types and features

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

Consumer loans: types

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

1. Target loans are loans that are issued by banks in order to achieve a client's specific goal, stipulated and prescribed in the contract. It can be overhaul, education, planned rest and so on. At the same time, the financial organization gets the authority to control where the funds are going. In some cases, a person may not even see the cash, as the bank immediately sends it to the account of the provider of the service: clinic, college, hotel, etc. If it turned out to take a targeted consumer loan, the interest rate on it will be low, and the payment terms are very soft.
2. Non-targeted loans 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 executing 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-earmarked loan, the bank does not participate in the further life of the client, but requires timely payment of the content of the credit program.

Package of documents for obtaining

It is necessary to collect a certain set of official papers for processing such services as consumer credit. Types of these loans and their diversity allow you to choose a program that fully meets the borrower's opportunities and expectations. To conclude the 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's branches;
• A second document that can help identify the identity of the borrower;
• Signature of the guarantor;
• Collateral object.

You can get a loan if you have only the first two items, but the more documents and guarantees, the more money, a longer term and softer terms. If a collateral object and a guarantee are provided, it is very easy to obtain a consumer loan. Interest in this case will be the lowest: from 12 to 15%. If the mortgage 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 a large amount of money was required to repair or buy a car, consumer credit 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 favors to rest abroad.