What is a loan

Credit is bank money that can be borrowed for important purchases and plans. On credit, you can buy an apartment or a car, have a wedding or go on vacation, or use it for other purposes. We talk about the types of bank loans, their differences and how to choose an offer based on your goals.

Definition

A bank loan is the provision by a bank of funds to a borrower at a certain percentage and for a certain period of time. Credit conditions are fixed by the contract.

Who can take out a loan

In the Russian Federation, a citizen over the age of 18 can take a loan with a stable income. Lending is available to employees, sole proprietors and business owners. In addition, non-residents can also take a loan in Russia. Conditions may differ for each group of borrowers.

 You can get a loan at any bank, even if it is not represented in your area. As for spending credit funds, if you take out a consumer loan or a cash loan, there are no restrictions. In terms of targeted loans from bank partners to pay for goods / work / services, the transfer against payment is made directly to the partner’s account.

 Types of bank loans

There are several types of loans for individuals, which differ in conditions and are used for different purposes.

Consumer

Such a loan is also called "non-targeted". It is issued without rigid reference to your plans. Moreover, you can take out a loan to buy household appliances, but then change your mind and buy a bicycle with this money - the bank will not change the conditions for you or apply fines.

 In MTS Bank, you can take a consumer loan for up to 5 years without collateral and guarantors. The maximum amount is 5 million rubles. Money can be received to the card account, which the bank issues free of charge for new customers, by crediting to your current account with MTS Bank or in cash at a branch.

 Secured loan

 Another type of non-targeted loan, the main differences of which are:

an increase in the amount of lending - for example, in MTS Bank, you can take up to 15 million rubles on collateral ;

 

longer period of the contract - up to 15 years, depending on the conditions;

 

obligatory provision of own real estate as collateral - it can be an apartment, apartment or house.

 

As in the case of consumer lending, money can be spent for any purpose. The main condition is to pay the debt on time according to the schedule established by the terms of the contract.

Mortgage

Targeted loan for the purchase of real estate. The most voluminous in terms of amount and term: a mortgage can be taken for up to 30 years, and the loan amount, depending on the bank, can reach 50 million rubles. You can buy a house, an apartment, land - it depends on the program.

Mortgage borrowers are subject to higher requirements:

 citizenship - strictly Russian Federation;

age - from 18 to 65 years (up to 75 years as a maximum if you have your own business);

the purchase of real estate is not fully financed, the borrower must provide at least 15% as a down payment;

the property must comply with the requirements of the bank - not be pledged, not be in a house for demolition, be owned by no more than 3 persons, etc.;

property must be insured.

In addition, the property that you take on a mortgage is pledged to the bank until the end of payments under the contract.

 Car loan

A car loan is issued for the purchase of a car and is issued not only in banks, but also in car dealerships. Such a loan is targeted, issued for a period of up to 5 years, depending on the bank, and its main feature is the transfer of the car as a pledge to the bank.

In terms of rates, requirements for the borrower, the amount of lending, a car loan differs little from a consumer one. Therefore, sometimes it’s easier to get a non-targeted loan to buy a car – then you don’t have to pledge the car, issue CASCO without fail, or choose a car in only one car dealership where there is a car loan.

POS lending

 POS loans are issued in stores from the English "point of sale" - point of sale. Credit consultants work in stores of household appliances, building materials, furniture and others, and offer to buy any product of this outlet on credit.

With the consent of the client, a classic consumer loan is issued, the terms of which depend on the bank whose offer you have used. The advantage of such lending is efficiency: you can make a purchase in just a few minutes, you only need a passport to conclude an agreement. You don’t need to go to the store to repay the loan: install the bank’s mobile application and make payments remotely.

Loan without interest

This is not a classic loan product, but a credit card. This form of lending involves opening a revolving line of credit to the client with special service conditions:

 

The presence of a limit that is smaller compared to regular offers, a possible amount - in MTS Bank this is 1 million rubles maximum;

free disposal of expenses - spend how much and when you need, pay only if you do not pay off the debt on time;

interest-free period - in MTS Bank it is up to 111 days, during which you can simply repay the debt and not pay interest to the bank at all;

The absence of a rate only for non-cash payments for goods and services - if you withdraw money from a card or transfer it to another account of an individual, the bank will charge a percentage or commission for using the funds.

But in general, this is a good alternative to a loan in case of inexpensive purchases: you can “intercept” the required amount before salary and save on interest - you have three months to pay off the debt.

Refinancing

Refinancing is the issuance of a new loan to pay off current liabilities. Applies to all types of contracts, including mortgages. It allows you to get more favorable conditions if the old loan was taken a long time ago or if you have circumstances to apply a preferential rate, for example, on a mortgage.

Refinancing should not be confused with restructuring - this is the name of the revision of the terms of the current contract if the client cannot cope with payments for good reasons (lost his job, is on sick leave for a long time).

Interest rate

The main loan parameter that determines your total costs is the annual rate. It depends on the type - for consumer rates it is higher, for mortgages it is lower, since there is security in the form of collateral.

How to choose an offer

 To choose a program, you need to understand the goals

For example, if you don't have enough for a house, you can take out a mortgage. But it takes a long time for her to collect documents, plus if the house is self-built, the mortgage may not be approved. Then you can get a loan secured by existing real estate or a consumer loan.

You can pay for household appliances with a credit card: it is easier to get it, and the debt repayment schedule for cards is more flexible.

But if you are buying an apartment, and you don’t have much of your own savings, a mortgage will help here. Choose a program with a minimum rate, conclude an agreement for the maximum possible period - the monthly payment will be less, the burden on the family budget will be more loyal.