Interest rates on loans have recently grown at around 2-3%, this is due to the expectation of the banks of the second wave of the crisis.
But, however, banks are in a very tough competition, they are interested in attracting more customers. This is reflected in the credit variety of programs offered, among which to choose more suitable.
However, banks are widely advertising their services, often mention the low percentage and favorable conditions, without excess. It is not always necessary to believe that advertising, and it is best to make sure the benefits of the proposal after studying the proposed terms of the loan in detail. This article will be given a variety of tips that will help you make the right choice, to understand some of the tricks and “traps” loans.
It is worth remembering that the interest on the loan and the interest on the deposit should not be considered as an equivalent amount, as they are calculated according to different principles. Interest on the loan is usually higher, but they are credited to the balance of the debt, which is gradually becoming smaller. So take a 100,000 loan. Rubles less than 23% per year, you pay another year of about 12,500. Rubles, and sending a contribution of 12.5% per year (some banks offer such conditions), will receive the same amount of profits.
Almost any bank can offer various loan programs. They can be divided into two groups:
- Loans to those who are important to obtain funds in the shortest possible time, with no opportunity to prove their financial results;
- Loans for those who have a little time and opportunity to collect the necessary documents.
Express loans – the fastest way to get money, but the percentage is of course very high. In this case, in the absence of time the bank to check the reliability of the borrower, the risks associated with a high rate. conventional loans when the bank checks the documents provided by the customer, and make a decision within a few days, are more beneficial in terms of overpayment.
Since the choice of the proposed lending program is very broad, it is necessary to choose a more suitable in different banks and each apply for a loan and then finally choose the most profitable option. You can use the Internet, visiting sites of banks. Often these sites can be calculated next payments using special loan calculator.
By choosing worth considering the following points:
- First of all, pay attention to your salary bank. Banks offer additional benefits if the client receives salary in the bank card. If the conditions do not suit you, then consider the proposals of the big banks. It is better if it is a state or a foreign bank, the stakes in these banks lower due to lower risks.
- Make sure to ask, what is the effective rate, or the total cost of the loan. For you, it is the most important indicator by which to compare offers from different banks. The effective rate will include a nominal fee and various fees charged by the bank when you make and maintain credit. It is worth noting that, for promotional purposes, banks usually offer interest-free loans, but the lack of interest they pay various charges. The result is that the interest-free loan – is not the most profitable.
- For most borrowers easier to navigate the various proposals, comparing the overpayment size. This number is even more evident than the interest rates, and will let you know, expensive or cheap loan you choose.
The amount and currency of the term deposit. The amount should be such that you really need, life is better to choose the shorter, but that the monthly payment will be about 20-30% of their income – these conditions are experts consider the most comfortable. Make better credit conditions in rubles, not to depend on changes in the exchange rate.
- Term deposit currency. The amount should be such that you really need, life is better to choose the shortest, but the monthly payment will be about 20-30% of their income – these conditions are experts consider the most comfortable. Make better credit conditions in rubles, not to depend on changes in the exchange rate.
- Seguro, if possible, always worth taking, especially if the loan amount is higher. A policy of low cost insurance, reduce their risks.
- Estudar carefully the terms of the contract, especially items marked “*” and a footnote in explanation, in small letters. Sometimes you can find a veiled transcripts and explanations of footnotes, somehow “magic” of converting an APR of 0% to 15%, or masking a large one-time commission, but they always have to take the three factors important: the effective rate per annum, one-time fee, monthly fee.
Very important are the early repayment terms of the loan, as it reduces the final cost. Under the law, banks are required to allow early repayment, but because they do not want to lose your income in the form of interest, the various sanctions.
For example, there is a moratorium on the early repayment of the loan for a specified period from the date of the loan. It is introduced to the bank to get some benefit from the guaranteed loan. For consumer and auto loans, this period may be equal to 3 months for a mortgage – for six months.
In the event of early repayment of the loan, the bank can provide various committees, but they are considered illegal, and you have every right to sue in 2011. If the loan is a small amount, the commission will be so low, but in the case of the mortgage amount will be significant.
Determine the size and shape of a minimum amount of early repayment of the loan. In case of additional free resources you can reduce your debt on the basis of the loan, and thus reduce the overpayment percentage on it. But here there is a certain feature of the banks, as a rule, set the lower limit of the amount of advance payment.
Note that the first bank to debit your account monthly payment amount, then compares the balance with the size of the minimum amount of early repayment. If your hand was a statement on the early repayment, the account balance is greater than the minimum amount required, then the early repayment occurs. If the account balance is less than the amount indicated, he will just lie on your account until the next payment.
There are two loan payments schemes. annuity scheme involves paying equal amounts throughout the repayment period of the loan. Initially dominated by interest payment, then paid the principal amount.
Conveniently, a scheme is that the introduction of funds is well balanced.
When a differentiated payment scheme shall repay the principal amount of the original debt, its size is large enough, it is not acceptable to all. This scheme is more beneficial for those who would like to repay the loan ahead of schedule. It will reduce the amount of payments by reducing the principal amount of debt, according to which the interest is calculated. Naturally, the smaller the remaining debt, and the smaller the amount of interest in the same. As a result, the amount of interest with differentiated payments less than the annuity.
It is essential to reduce the interest rate on the loan (sometimes up to 10%) may be present to the bank documents confirming your income (2-PIT reference). Only a certain value has a positive credit history, past work at least one year, the presence of guarantors, and if you previously were a bank customer.
For large amounts of debt, for example, in the case of a mortgage, then maybe it makes sense to seek the advice of an expert – the broker. In this case, the payment for the services can be much lower than that achieved saving time and money.