When applying for express loans with a minimum package of documents, borrowers rarely delve into the terms of the loan agreement. The main reason for this neglect is the urgent need for borrowed funds and the lack of time. However, it is precisely this inattention when signing loan documents can subsequently bring a lot of problems to the borrower. When the time is right for the first payment, reckless borrowers start looking for various ways to reduce the cost of a bad loan. Is it possible to somehow reduce the cost of a loan at the stage of registration and during the period of its repayment?
Credit broker assistance
Most Russians independently choose the bank from which they want to take out a loan. However, in our country there are many organizations specializing in obtaining the most beneficial loan programs for the client. Such specialists are called credit brokers, they are well aware of the state of the current credit market and know how to "please" a particular lender. Cooperation with a credit broker at the stage of processing a consumer loan will save a significant amount on bank interest.
An initial fee
Many Russian banks work according to the principle - "the larger the amount of the first installment, the lower the interest on the loan." This is quite logical, because the size of the loan interest rate reflects not only the cost of the loan, but also the bank's risks of losing its money, respectively, the smaller the loan amount, the lower these risks will be. Therefore, when purchasing any product on credit, it is better to be ready to make an initial payment of at least 10% of the cost of the purchased product.
Early loan repayment
Most banks use an annuity scheme for repaying credit debt, in which interest for using the loan is charged on the balance of the debt. If the debt is repaid with minimal payments, the amount of interest paid to the bank at the end of the loan period will be very impressive in relation to the original loan amount. Therefore, the most rational would be to repay the loan in payments larger in amount than indicated in the loan repayment schedule.
Loan security
It is possible to reduce bank risks, and with them the interest rate on a loan, by providing the bank with guarantees for the return of borrowed funds. The loan can be secured by any liquid property or surety. Providing the bank with guarantees, he already knows in advance that in any case he will receive his money, if not in cash, then at the expense of the proceeds from the sale of the collateral or received from the guarantor.
Target loan
Another way to reduce the cost of a loan is to issue a targeted loan. If you borrow money from the bank in order to make a certain purchase, informing the lender about it, then he will know that you know how to manage your finances. Therefore, the rate for targeted lending is much lower than for conventional consumer loans.
Refinancing
If you took out a loan in a hurry and did not pay attention to the lending conditions, then you can get rid of an unprofitable loan by refinancing it in another bank. To do this, you need to choose a bank with the most attractive conditions, apply for the repayment of the existing loan by applying for a new loan and repay it already on more comfortable terms.
Preferential terms
If you want to get a loan on favorable terms, then it is best to contact the bank where you have previously taken out a loan and successfully repaid it. Banks are very "fond" of respectable borrowers who can be trusted, therefore they are ready to lend to such clients at a lower interest rate. If you need a targeted loan, for example, a mortgage or car loan, then ask if you fall under special preferential programs, for example, a mortgage for state employees.
