Before you take out a loan, most people think about which banks will benefit from borrowing. However, in the search for the dream for which they need the money, people sometimes forget to pay attention to their solvency and possible circumstances of force majeure.
How can I calculate which loan is right for you?
Before you limit yourself to a loan offer, the best option would be:
- Calculate the possible creditworthiness and the payment amount per month under the contract. This borrower is considered a means of payment for a loan in a month that does not exceed 50% of the total income. The best option would be if this amount is 10 or 15% of your income. According to experts, this payment has practically no impact on the borrower’s standard of living.
- You have the option of an additional income. A good alternative would be if you have additional money in addition to your main income. Even if your annuity is not visible on your budget, this money may be required in unforeseen circumstances.
- Determination of the approximate duration of the loan repayment. Remember, the longer you take out a loan, the lower the interest rates on loans. It is not necessary to go from extreme to extreme to find the “middle ground”. As the statistics show, people prefer to borrow for a year or two, but when it comes to mortgages, it is for 5-10 years.
Get a loan: the necessary documents
Today almost every bank offers loans for every purpose. The most common type of loan is consumer credit. This
The loan is not targeted and the borrower decides where to spend the money without the knowledge of the bank. Almost all banks have a list of documents to apply for a loan:
- Passport of a citizen of the Russian Federation.
- Certificate of income from 2-NDFL.
- SNILS, passport or driving license.
- Additional documents on request from the bank.
Which banks benefit from borrowing?
As statistics show, at the beginning of 2015, lending rates rose significantly compared to 2014. It would be right to associate this with the country’s unstable economic situation and the ruble deduction.
GreatMoney Bank comes first. According to analytical data, this bank has the lowest interest rates. This organization has long held a leading position in lending with government support.
The average interest rate for a consumer credit transaction is 19% per year.
A loan is possible with 21% per year.
The third most popular credit organization is the Bank of Moscow. It is also a non-governmental structure and works closely with the population. Possible overpayment for the year from 23% per year.
Lifeline Bank is a leader in lending to people aged and retired. However, interest rates leave something to be desired and can reach 30% per year of lending.
Characteristics of credit institutions
No expert can give you an exact answer to the question of which banks benefit from borrowing. When applying for a loan, you should note that each bank has its own nuances. Before calculating the interest rate, such factors must be taken into account: the loan amount, the credit period, the contractual insurance, the estimated tariff, the availability of collateral or guarantor, your data from the CII and much more. Only on the basis of this data can the lender calculate the amount and the interest rates of the loan, but only on the condition that he is personally appealed to the bank.
Conditions for obtaining a loan
Almost all banks have the same requirements for the borrower:
1. Passport of a citizen of the Russian Federation. Some banks make concessions and allow a person to get a temporary residence loan. The law does not prohibit this, but in practice it happens very rarely.
2. Age from 21 to 65 years. The exception in this section may be the Lifeline Bank, which grants loans to pensioners under the age of 75, provided that at the end of the loan agreement they cannot be older than the specified age. At the time of application, you must be a maximum of 70 years if you take out a 5-year loan and 72 years if you take up a loan of up to three years.
3. Official work. No bank will issue a loan to a non-working person. Confirmation of your employment can be a certificate 2-NDFL, a certificate of state registration from you as a sole trader or the fixation of your company in the form of LLC, CJSC, JSC.
4. Good credit history. The repeated delay in loan repayment in the past 100% of the time will serve as a reason for refusing a loan. The lack of your data in the credit bureau can also serve as a rejection of your application. Experts recommend borrowing a cheap thing: a phone, household appliances, or furniture, and repaying the loan on a regular basis to establish yourself as a capable, responsible borrower. If you are declined ten minutes after the application, you can be sure that your bad credit history may be the cause, as the banks first review the data from the CII.
Customer ratings for banks
Answering the question “Which bank is more profitable?” Loans “, it is important to pay attention to the organizations that service the loan, and the reviews will help you present the overall picture of the loan services offered by this bank.
Before deciding which banks to borrow, it is always profitable to check for yourself whether you can pay. It is not desirable to take out a loan if the monthly payment exceeds 40-50% of your income. Do not complain about the possibility of early payment under the loan contract, but not force majeure. Finally, don’t blame the bank if you’re having trouble paying the mandatory monthly payment. You should always approach the loan with a “cold head”.