Creditors’ signboards and announcements are increasingly amazed by their wide variety of programs . Is there any product or service left that could not be purchased with bank credit? Most likely, no. But no matter how many types and models your official creditors offer you, you can set up an off-target consumer loan for any offer.
Consumer credit has “gone ahead”
If one can believe the statistics, a large part of all loans are consumer loans, but why are they so profitable? There are many arguments, but here are a few:
- Consumer credit is available at any bank.
- You can spend your consumer credit money on whatever you want.
- Fast application processing and same-day cash withdrawal.
- Possibility to send an application and find out the answer on the creditor’s website.
- The requirements for the borrower are not too strict.
- The ability to quickly compare different credit programs, use the credit calculator .
- Small amounts of consumer credit allow you to get financial help without a pledge and guarantor, often without even an income statement.
If in the past potential borrowers did not turn to the bank for consumer loans so often, this can only be explained by the low availability of information about this or another financial product. At present, every creditor, even the smallest, has its own official website where its visitors and regular customers can get a closer look at consumer credit terms . If they are interested, they calculate payment schedules and monthly installments right on the credit calculator, compare optimum values and choose the optimum program.
Loan calculator: transparent calculation
Finding out what you can expect, what annual rate the bank will offer you, what time limit you can be confident in, is now possible even without having to go to a bank branch. You can find out all the amounts you are interested in on the first page. In addition, the creditor informs the borrower of all possible costs and individually determines the effective rate , not the annual rate. In other words, he shows you what percentage of the loan amount you will have to pay (effective interest rate).
Another credit calculator option: Calculate some of the values you enter, and then display them for comparison. This is also where you can create a clear payment schedule and even print it out.
Finding out any details with such a virtual device has become much easier, and nowadays, banks are listing all the calculations in great detail, showing various examples and explanations. However, all figures obtained in this way are only approximate. The borrower will know the exact interest, amount or maturity when they apply for the credit.
Under what scheme is a consumer credit granted?
- Filling in the loan application form via the Internet bank or directly at the lender’s office.
- Once a decision on your application has been made, a bank employee will contact you and tell you all the details of the program you are offered .
- Making a decision. Knowing the terms and conditions under which a consumer loan is available to you can help you calculate its rationality and, if necessary, refrain from signing a contract.
- If you are fully satisfied with the credit terms, sign a contract and get the money.
The amount of the consumer credit can be issued in cash at the bank or transferred to the customer’s current account . Often, creditors even transfer money to credit cards of other banks.
How else can consumer credit be used?
The amount of money received, even a small one, is used differently by different borrowers, for example:
- Someone applies for a mortgage bank loan but no down payment. It is the consumer credit that will be this down payment.
- Not all banks available to us have medical services, training, repair or travel programs in their financial “arsenal”. Therefore, many apply for a consumer credit instead of a study credit.
If target loans are compared to non-target (consumer) loans, the latter are characterized by an increased interest rate. But since the borrower here has the privilege of not “paying off” to the creditor, he pays honestly for the “confidentiality” of his expenses.
If you look at bank loans, the attractiveness of consumer loans for these banks is obvious, as is the speed with which they are processed, received and available . But you will only get the maximum benefit from your loan if you can prove your income. Your credit history is also important to the bank.
Continuous cooperation with the same banks only has a positive impact on the borrower: he receives money quickly and without any overhead, applies for reduced-rate loans, and is constantly informed of all “financial” developments.