What is a bank loan? How do I get a bank loan online ? Such questions are quite common in the environment of residents with insufficient financial literacy. Which, by the way, are almost the vast majority of the population. So let’s try to put dots above I at least in this particular issue.
What is a bank loan?
Bank credit is called material resources in cash (amount of money) issued by an authorized (licensed) financial institutions borrower (which may be a physical or legal person) for a certain period of use, under the lending rate. The main purpose of a bank loan is to make a profit issued by its lender.
Not only commercial banks but also other specialized financial institutions, such as: financial, microfinance companies, pawnshops, can serve as lenders in which you can obtain bank loans of one type or another.
Where can I get a bank loan ?
You can get a bank loan by:
- commercial banks – practically the whole range of credit products, from consumer microcredit, trust (unsecured) loans for any purpose, to loans secured by movable and immovable property, large credit amounts for business;
- specialized financial companies (FC) – certain (special) types of loans. Typically, these are loans secured by land, residential or commercial real estate, automotive, agricultural, construction equipment.
- MFI Microfinance Organizations – Trust-free microcredits (up to 10-15,000 hryvnias) for any purpose.
- pawnshops – micro-loans secured by liquid valuable property. Specialized pawnshops can provide you with a larger amount of credit for securing a car and other self-propelled vehicles.
How to get a bank loan for consumer purposes?
These types of loans are usually issued by commercial banks in close cooperation with trading counterparties ( large stores or supermarkets, including via the Internet ). With the help of consumer credit it is possible to buy one or another much-needed thing, a technique for which it is not enough for the purchase of the full value of its money. Such a thing (technique), purchased on credit, can be used immediately after the purchase, until the payment of the loan is completed.
To get consumer credit, you need to select the right product and outlet that sells it under the terms of consumer lending. Usually, it is enough to have lang = “”> to the borrower.
At a commercial bank, you can get a loan without a mortgage for a substantially larger amount and at a lower interest rate. But the bank has quite stringent requirements for the borrower : financial discipline (must have a positive credit history) , and solvency (should be provided with evidence of regular income from work, tax inspection, pension fund). Accordingly, such a loan is not available to all categories of potential borrowers.