Urgency means that the money is always issued for a strictly defined period.
Paid means that the bank never gives money free of charge. There is no "free credit"!
Repayment means that the bank always expects the return of the issued money.
All major types of loans for individuals are available in Belarus: consumer, car and real estate loans.
Bank loans allow you to attract the missing financial resources for specific purposes. However, a loan is taken not only "if there is not enough money", because. it is a personal finance management tool for people with a wide variety of incomes. An alternative to credit is savings.
With a reasonable approach, living on credit is not scary, but the value can increase significantly.
Find the best loan for you among all those on the market using the BENFIT BY system for selection. Fast, easy and knowledgeable!!
What is a loan?
CREDIT (from lat. creditum - loan, debt, credere - to believe) - a loan in cash or commodity form, provided to the borrower on terms of repayment, urgency and payment. The basis of credit is the appearance of temporarily free cash in the process of capital circulation.
Loan forms.
It has diverse forms of manifestation: commercial, banking, state and international.
The banking form of credit (bank credit) is the most common. A loan is provided by banks in cash from their own or borrowed capital and is carried out in the form of loans, bills of exchange, etc. In terms of volume, a loan with a banking form of credit is much larger than loans issued with each of its other forms.
Credit term.
The time for which the loan is issued. Allocate the full term of the loan, the repayment period of the loan, its use, etc. For the borrower, the moment of issuing the loan is important, it is from it that the countdown of the loan period begins and, accordingly, the calculation of interest.
Amount of credit.
The amount of funds in the relevant currency provided on credit, determined by the need and the possibility of obtaining them by the client.
Loan currency.
The name of the monetary unit of the loan agreed between the lender and the client may not coincide with the currency of the loan repayment.
Interest rate and other payments/commissions.
Interest rate - the established fee for using the loan, expressed as a percentage of the loan amount for a certain period (year, month, etc.). Do not take the interest rate as the main guideline when choosing a loan. So often it is only illusory and is not an unambiguous parameter in determining the loan fee (but rather a formal one). Additional payments and commissions can significantly increase the cost of the loan. Which, of course, can complicate the search for a suitable offer.Learn more about the effective interest rate on a loan...
Loan repayment method.
There are 2 main ways to repay a bank loan:
Annuity - a periodic payment of a relatively fixed amount, including principal and interest, to repay a loan, regulated by the terms of the loan agreement.
Differentiated payment - a method of repaying a loan, in which the amount of payment is calculated directly from the amount of debt on the loan for a certain period of time.
There is also a periodic repayment of a fixed share of the principal and accrued interest for a certain period. For example, "monthly at least 2% of the principal debt and the amount of interest accrued for the period for using the loan." This method is often used for credit cards. Overdraft
An amount in excess of own funds on the card, which the cardholder can repeatedly spend with its subsequent reimbursement and payment of accrued interest within the agreed period. Nowadays, overdraft loans are no longer a rarity. Overdraft loans are often provided to payroll card holders at the respective bank.
Early repayment of the loan.
Repayment of all or part of the loan amount before the maturity date specified in the loan agreement. The loan agreement may provide for a moratorium (prohibition) on early repayment of the loan within a certain period, or sanctions (additional commissions). But even if a fee is provided for early repayment of the loan, it is more profitable to pay the fee, but save on the loan fee in subsequent periods.
Loan security.
Additional guarantee of repayment by the client of the loan provided to the bank.
The main types of collateral for a bank loan are: surety, pledge, transfer of title, security deposit.
Loan agreement, other conditions and nuances.
The provision of a loan by a bank involves the conclusion of a loan agreement in writing. Under a loan agreement, a bank or a non-bank financial institution (lender) undertakes to provide funds (credit) to another person (borrower) in the amount and on the terms specified in the agreement, and the borrower undertakes to repay (repay) the loan and pay interest for its use.
Changes and additions to the terms of the loan agreement are possible only with the conclusion of an additional agreement to the loan agreement.
The essential terms of the loan agreement are the amount (amount of the loan), the term, the amount of interest, and so on.More about the terms of the loan agreement...
Should I use a loan?
This is a purely individual question, when considering which you must weigh many factors for and against. It should be noted that the offers of individual banks may contain concessions in certain requirements, which in the eyes of the client increase the need for a loan compared to their capabilities. However, a loan may well act as an alternative to long-term accumulation of funds, which is facilitated by an extensive list of goods purchased on credit. The reliability and objectivity of information about the loan, about the payment for the loan should be taken into account in the process of selecting it and choosing a bank.
Probability of a bank refusing a loan.
The Bank has the right to refuse to conclude a loan agreement if there is information that the loan amount provided to the client will not be returned (repaid) on time, if the client does not provide security for the fulfillment of obligations under the loan agreement, if there are other grounds that could affect the fulfillment by the borrower of obligations under the loan agreement or stipulated by the legislation of the Republic of Belarus.
If you have loans from other banks.
You need to know that when making a decision on issuing a loan, the bank takes into account whether the borrower has loans from other banks. This information is always indicated in the borrower's application form when applying for a loan.
Starting from 2009, the procedure for obtaining information about potential clients by banks during the final organization of the work of the Credit Bureau will be simplified. This gives banks the opportunity to more accurately weigh the risks they take on in each specific case. However, for the client, this may be the reason for reducing the size of the loan, or even refusing to receive it.More about credit history...
Types of loans provided by banks to individuals.
Consumer credit- a loan issued for the purchase of any goods or services, such as furniture, video equipment or a tourist package. It is implemented either in the form of the sale of goods with deferred payments through various stores, or in the form of a bank loan for consumer purposes.
Car loan- a loan issued by a bank for the purchase of cars, both new and used.
Real estate loan - a loan issued for the purchase or construction of real estate (if a mortgage, then it must be secured by real estate as security for the repayment of the loan).
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