A loan secured by movable or immovable property is provided by most of the banks in our country. Such a loan differs from the rest in that it can be obtained in a fairly short time.
A secured loan is often called differently - a secured loan. This term means credit funds that are issued by banks subject to the provision of collateral by the lender: residential and commercial real estate; land plot; vehicle; other property rights. The methods of repaying such a loan may vary and depend on the bank and the lender's preferences.
The most significant fact that must be understood is that the largest amount of a collateralized loan is located at the level of 80% of the appraised value of the collateral, in the case when real estate acts as it (not older than 10 years), and 70% - in case of credit money is issued on the security of movable property. In this case, a car can be used for these purposes only if by the time the loan contract expires, the age of the car will not exceed 5-7 years.
There may be a feeling that a loan secured by real estate is beneficial for both the lending institution and the client. On the one hand, the client receives the missing amount of money, which does not depend on the volume of the official salary, on the other hand, the bank reduces its risks thanks to the collateral. An obvious advantage - many lending institutions offer a preferential interest rate for loans with collateral.
The main costs associated with obtaining such a loan include the commission for the issuance of loan funds or the commission for their transfer. You will also have to pay for notary services for documentary support in the execution of banking agreements on the property pledge. Additional costs include insurance of pledged property, life insurance of the borrower against accidents and risk of death.
In order to receive a secured loan, you will have to collect and bring to the bank the following package of documents:
- Borrower's passport, his spouse, if the borrower is married;
- Borrower's and spouse's identification code;
- Marriage certificate;
- Documents of title to property (movable or immovable).
After reviewing the basic package of documents and receiving an opinion on the issuance of a collateral loan, the borrower will additionally have to prepare:
- A document that confirms the right of ownership, that is, a contract of sale, donation, etc.;
- Personal passport and code of all persons registered in residential property, which is taken on bail;
- Reference-characteristics from the BTI for the borrower's living space;
- Technical passport for the apartment;
- Certificate of registered tenants from the housing office according to Form No. 3.
