Types of bank loans

Loans are classified depending on what the money is required for:

•Loans for business development, closing of cash gaps and other loans for legal entities.

 •Mortgage. It is issued to improve living conditions: buying an apartment, a plot with a house or building a summer house. The property is pledged to the bank. In the event of systematic major violations of the contract, it can be lost.

 •Loan secured by real estate. Allows you to get cash secured by existing housing or a car. The main plus is that you can get large sums for any purpose without guarantors. Since such loans are taken for a long period, it is important to carefully calculate and foresee everything.

 •A car loan is a loan to buy a car. In most cases, the car is pledged, so it must be insured, including a CASCO policy. Financial institutions usually issue such loans at low interest rates.

 •Consumer. The money is given in cash or transferred to the borrower's account. They can be obtained for any purpose, for example, for vacations, education of children, purchase of expensive equipment, repairs. Banks issue small loans without collateral and guarantors with a minimum set of documents.

 •Refinancing. This is the receipt of funds in one bank to repay the debt and accrued interest in another. Refinancing allows you to reduce your monthly payment, lower your interest rate, extend your loan term, or make it easier to repay a loan.

 •Restructuring. If a difficult life situation arose, you need to apply with an application to the bank where you took the loan. The terms of the contract may be revised to facilitate the repayment of the debt.

 •Credit cards. These are revolving loans. With such a card, you can use the bank's money an unlimited number of times within the credit limit - pay for purchases or withdraw cash. You can use money for free, but there is usually a fee for servicing the card. It is important to study the conditions for providing such a loan, since in some cases the grace period - the period during which interest is not charged on the amount of the debt - terminates ahead of schedule.

 

According to the method of repayment, annuity and differentiated loans are distinguished. The overpayment to the bank will be the same in both cases, if you repay the debt according to the payment schedule.

 

Annuity payments are always the same. Thanks to this, it is convenient to plan your budget. Contributions consist of unevenly distributed debt, as well as the amount of overpayment. The interest is repaid first, then the principal.

 

What is important to pay attention to when applying for a cash loan

 

First of all, it is important to determine why the money is needed and how much. For example, if you are planning a renovation, you first need to draw up an estimate. Keep in mind that you may face additional expenses, and put a reserve in the loan amount to cover such expenses. If the surplus is not required, it can be used to pay off the debt ahead of schedule.

 

In Alfa-Bank, you can get a cash loan for any purpose, even such ambitious ones as building a house, if the mortgage is not suitable. The loan amount varies from 100,000 ₽ to 7,500,000 ₽.

 

It is important to choose the right loan term so that the amount of the monthly payment is comfortable. We recommend calculating the options using the calculator on the official website. The bank provides a loan for a period of 1 to 5 years. The longer the term, the lower the monthly installment, but the overpayment increases. You can reduce the amount of the latter using partial or full early repayment. Banks differ in the conditions for accounting for overpayments: somewhere repayment occurs on the same day, somewhere it is counted only on the date of the monthly payment. Specify the conditions to correctly calculate the budget and the amount due.

 

For unforeseen cases, you can connect the option of financial protection of the borrower. The conditions of insurance programs vary, but almost all provide coverage for such risks as the risk of losing a job, serious injury, etc.