Credit brokers are intermediaries between banks and borrowers. They help the client to choose the optimal loan offer, as well as to correctly draw up the loan documents.
Instructions
Step 1
When do borrowers most often turn to loan brokers? Firstly, in conditions of time pressure, when they do not have the opportunity to collect all the documents for a loan and apply for a loan. Secondly, today the services of brokers are often used by clients with bad credit history who find it difficult to get a loan. Turning to credit brokers makes sense. Brokers can also represent the interests of clients in banks, challenge illegal commissions and insurance.
Step 2
Credit brokers cooperate with several banks at the same time. They often have an agency agreement with banks. Based on the loan programs offered by partner banks, they allow the borrower to choose the most optimal option in terms of the loan amount, the amount of monthly payments and the interest rate.
Step 3
With knowledge of the borrower assessment procedure and application requirements, brokers help to collect and execute a package of documents. This can help increase the chances of loan approval. After all, a correctly drawn up loan application is one of the success factors. The advantages of working with a loan broker for borrowers is that it can help save on loan overpayments. In particular, it will point out the "pitfalls" in the loan agreement. For example, additional commissions and insurance. Often, when issuing a loan through a broker, the client does not need to pay a commission for considering a loan application or for issuing a loan. He will also help you choose a cheaper insurer or appraiser, if required by the terms of the loan.
Step 4
Upon approval of the loan application, the broker receives a reward. In Western practice, the bank pays the commission for the borrower who issued the loan to the broker, and the broker's services are free for the borrower. In the conditions of Russian reality, this is the responsibility of the client of the brokerage company. The commission for an approved loan can be from 1 to 5%; if a loan is refused, no monetary remuneration is paid. But a scheme is often practiced when brokers receive a fixed amount for their services.
