How to choose a Bank for a loan
This question does not have the only correct answer. When buying consumer goods, we try to get the best quality product at a reasonable price. When choosing a Bank, the characteristics of the quality of services offered are not always obvious, the cost stated in the advertising brochures often does not correspond to reality, and credit products are not available to everyone.
Deciding how to choose a Bank for lending, decide what is the priority for you: the speed and guarantee of receiving money, the minimum interest rate, low overpayment or the possibility of early repayment without additional fees?
First, find out which banks are represented in the region of your residence, and study the conditions for granting loans, stated on their official websites.
It makes sense to consider not only large, but also regional, less well-known banks, as well as non-Bank credit organizations, p2p-lending services, working without intermediaries. They are interested in attracting customers and often offer more favorable conditions, and some are less demanding to the set of documents.
Pay attention to the reputation of the credit institution, read customer reviews on the forums.
From the reviews you can get information about the terms of service, the presence of unexpected clauses of the contract, written in small print, the quality of service.
Navigate in the proposed amounts and interest rates, conduct the initial selection of suitable options.
The main task of the lean borrower – as little as possible to overpay for the use of money. Great if you have a good credit history. Its quality is an important criterion for the approval of the application and can affect the amount and the proposed rate.
If the desired amount is measured in hundreds of thousands of rubles, some banks will require collateral in the form of guarantees or collateral. The amount of the secured obligation may be increased depending on the value of the collateral.
Find out what are the nuances when applying for a loan, requirements for borrowers, a list of documents, the timing of the loan application.
The main requirements that banks impose on potential borrowers are the age, the presence of registration in the region of the Bank’s presence, the official salary, experience in the last place of work. Make sure that you meet the requirements of the Bank on the criteria specified by them.
The list of required documents is usually specified directly in the conditions of the application. The mandatory minimum is a passport, but to obtain approval on favorable terms, be ready to confirm income.
In case of an urgent need for money, consider banks that issue loans within 1-2 days from the date of application. It can be a Bank whose salary client you are. He has access to information about your income and most likely will not require certificates of employment.
In other cases, be prepared for the fact that the proposed interest rate will be higher than stated in the advertisement, or the Bank will approve the issuance of a smaller amount.
Beware of tempting offers to receive money for an hour and only on the passport – such loans are usually issued at huge interest rates and often contain hidden payments and other additional conditions that can be a surprise. The stated rates of 1-2 percent per day are equivalent to 365-700 percent per annum. Perhaps, it is necessary to wait for consideration of the application and to receive the consumer credit on more favorable conditions, or at all to refuse such loan not to overpay excess.
Think about whether you can refer yourself to the category of citizens who are offered preferential rates. It is also possible that a loan for your purpose is issued on special terms.
The most common “special groups” of borrowers – are employees of the public sector, the military, pensioners. Differences in the terms of the loan in the same institution can be determined by its purpose: you can choose a special program for the purchase of a car, housing, repair or payment of training.
Evaluate how convenient the location of the institution is for you.
Several visits to the Bank’s office may be required to submit documents and sign the agreement. Take care of the convenience of debt repayment in advance – as a rule, the terms of the contract provide for monthly payment, so the availability of an Internet client to transfer amounts on schedule online will save your time.
Specify all the details of the loan agreement: the presence of commissions, the possibility of early repayment, penalty rates for violation of payment terms, the obligation to connect additional paid services (account maintenance, insurance, SMS notifications).
This point can be decisive in calculating the total overpayment for the entire period. The low interest rate declared by the Bank does not mean a low total cost. To reduce the risk of non-return and additional profits, banks offer borrowers to take out life, health and disability insurance, the subject of collateral. The cost of insurance is included in the loan amount, and the borrower has to pay it.
Be sure to find out whether it is possible to repay the loan early without moratoria and fines, because it will allow you to win by paying less interest.
To decide which Bank to choose for the loan, collect as much information as possible, compare all the main parameters for the suitable offers and you can apply to several organizations at once – this will save time if there is a refusal somewhere.
Have you chosen the best Bank for lending? With mutual sympathy and an approved credit application, do not forget to read the agreement carefully and make sure that all the conditions are transparent, clear and suit you – and only then take a loan.