In 2006, there may be cash requirements at the best time. It is necessary to accept the monetary credit as quickly as possible and under favorable conditions. And then the question arises: “Where to go?”. Banking or Microfinance Institutions (MFIs)? In terms of benefits, the bank, and as quickly as possible, MFI.
When applying for a bank loan, the prospective borrower must provide a package of documents. The more documents a borrower can provide to a bank to confirm its prosperous status, the lower the annual interest rate and the higher the loan.
What you need?
The package consists of:
- Proof of identity.
- Compulsory health insurance policy.
- Vehicle registration rights or certificates.
- Passport, it is desirable that there be passport check marks that indicate a trip abroad in the last 6 months.
- Questions from the real workplace about the income for the last 12 months, verified by the seal of the head of the organization and signed.
- Copies of all pages of the workbook or other documents that can confirm employment. This can be a workbook statement or a certificate signed by the head of the organization that contains information about the employee: their position and work experience. Or a copy of the employment contract. All pages of documents must bear the seal and signature of the title. The length of employment from the current job should be 6 months and the total work experience should be at least 12 months.
- Certificate of registration to the tax service (TIN).
- You may also need additional documents to obtain a cash loan from a bank:
- a military license (for persons under the age of 27) and, in the absence of such a document, evidence of the postponement of military service;
- original and copy of marriage or divorce certificate;
- A copy of the certificate attesting ownership of the immovable property.
Money on credit
In the current year 2016 take a cash loan, the beneficiary will have to choose the bank with the most attractive interest. For consumer loans, the rate will be from 22-38%, the mortgage will be from 11.9-18.8%, and the car loan will cost from 18-24%.
Package of documents submitted by the debtor budedo 2-12 working days. The bank employee then informs the potential beneficiary by decision. The borrower will be able to pay a cash loan from 1 to 3 years, based on the amount of the loan and the interest charged on it.
Virtually any borrower with a full credit history can be expected to receive the maximum possible loan. The amount of income will depend on the debtor’s monthly income and costs and the type of collateral it can provide.
If the bank requires a comprehensive package of documents, Forcing the borrower to collect many certificates and make voluminous photocopies of various documents, and then raise money for MFI credit, you don’t need a lot of documents. And in time everything will be decided much faster. The only negative is that even if the debtor collects a large number of documents confirming his viability, the interest rate will still be higher than at the bank. In addition, the amount of credit will be limited, especially if the borrower applies for the first time. And the amount of the loan will be issued only in rubles.
The list of documents to be used is very short and consists of only one item an identification document.
It is possible that the debtor will be asked to provide a second document, but here he can choose from a list offered by the lender.
The cash loan provided will be interest bearing, depending on which microfinance organization the borrower will cooperate with. The minimum interest rate for first applicants is from 0.8 to 2% per day. The annual percentage will therefore vary: from 292 to 730%.
The borrower will have to refund the amount received for a relatively short period of time: from a few weeks to six months.
If the borrower does not first apply to MFIs, it can expect to receive a loan on other more favorable terms. A recurring loan is characterized by a reduced rate, which is reduced almost twice. Also, the borrower can expect to increase the amount of the loan. The company is thus trying not to lose one customer. Psychology works here in this MFI they consider it a serious and positive client when they give money on credit and provide bonuses, so why look better?
Another way to get a loan is to get a credit card. According to statistics, more than a third of the Russian population uses a credit card.
To obtain a credit card, you will need to collect an identical package of documents, both for consumer credit. You should not rely on a large credit line when you first issue a credit card. If the debtor takes a responsible approach to monthly debt repayment and actively uses the card, his credit line will increase. Do not withdraw cash from your credit card. Firstly, the banking system does not welcome this, and secondly, the credit card fee can reach 5% of the amount issued. And sometimes the commission may exceed the amount spent.
Interest, repayment period and other expenses
Creating a credit card cash loan does not take long: from 1 to 7 business days. Sometimes the borrower does not have to go to the bank to get it a courier service delivers a credit card to his house.
The average life of a credit card is 3 years. You will have to pay for the service every year. The amount will be calculated based on the card type: Maestro or Visa, from the credit card limit plus the costs incurred by the bank serving the client at the bank branch. The monthly loan repayment will be 5% of the credit limit.
Choosing the right place to borrow is the prerogative of every citizen. You should correctly assess your financial capacity, plan your income and expenses, avoid spending rashes to pay off your debts in time and not worsen your credit history.