An unsecured personal loan will allow you to quickly borrow a small amount without providing collateral. But this type of loan has both pluses and minuses.
Sometimes a situation may arise when a person urgently needs money. But a citizen cannot provide a collateral. An unsecured consumer loan is suitable for such a case.
What is an unsecured consumer loan
This is a fairly small amount that the borrower has the right to spend on consumer needs (at his own discretion). Such funds can be:
- provided directly at the point of sale so that a citizen can purchase the product he likes;
- transferred to a credit card;
- provided by the bank in the form of cash or non-cash (by transfer to a personal account).
Such loans usually do not even require guarantors, and the funds are provided by the lenders as soon as possible.
To get such "easy" money, you need to:
- Be a citizen of the Russian Federation.
- Have a permanent registration near the location of the bank that will provide the funds.
- Be over 18 and under 70.
- Boys under 27 years old to provide a military ID.
- Have a steady income, and a total work experience of at least a year. Work at the last place of work for more than two months.
- Provide your phone number.
Typically, the amount of a consumer loan ranges from 15,000 to 1,500,000 rubles. The period during which it is necessary to repay the loan is from three months to seven years. A loan application is considered rather quickly - from several hours to five days.
The bank's specialists will study the borrower's credit history. If it is positive, he can be given a loan for the maximum amount with minimum interest and for a long time.
What papers are needed
To obtain an unsecured consumer loan, you need to submit the following documents:
- statement;
- passport;
- a copy of the work book, certified by a notary;
- TIN;
- insurance pension certificate;
- income statement.
But not all banks require such a complete package of documents. For some creditors, it is enough to provide only a certificate of income and a passport. But before signing the agreement, it is better to familiarize yourself with the terms of the loan. Indeed, sometimes a simplified scheme for providing funds is not very profitable for the borrower because of the high interest rates and penalties for overdue debts.
Positive and negative aspects of an unsecured loan
The pluses include the fact that:
- you need to provide a small list of documents;
- the application is quickly reviewed;
- the loan is provided without collateral;
- money can be spent to purchase any commodities;
- the registration procedure takes little time.
The disadvantages include:
- the interest rate is high;
- the amount provided is lower than with a secured loan;
- the amount of interest and penalties for late payments are significant.
The borrower needs to carefully study the entire agreement and understand that if it is impossible to repay the loan, he will have to pay the bank with his property. Only after that will the citizen decide whether to take such a loan or not.
