Recently, express lending programs have become very popular among the population. This is due to the fact that Russians have become more likely to face situations requiring borrowed funds to resolve urgent issues, and there is not enough time to collect a large package of documents. Banks, of course, take advantage of this, offering to issue a loan in one hour with one passport. But what are the consequences for the borrower can face a loan taken in a hurry?
Express lending conditions
When issuing express loans, banks set a certain limit on funds that a borrower can borrow. If you are aimed specifically at this type of loan, then you should not count on a large amount - no bank will lend you more than 100 thousand rubles. The main convenience of such loans is the simplicity and speed of obtaining them, but you will have to pay for this convenience, and considerable interest. The reason for the large overpayment on express loans lies in the bank's too high risks, because in such a short period of time the lender simply does not have time to properly check the potential borrower for his reliability. Thus, the bank issues money based only on the results of scoring.
To apply for an express loan, you must have a passport of a citizen of the Russian Federation with permanent registration in the region where the credit institution is present. However, if you have a valid income statement on hand, then it makes sense to provide it as well - this will reduce the rate on the loan being issued.
As for the cost of express loans, the annual rate will be 5-15% higher on average compared to ordinary consumer loans. True, the interest rate itself does not yet reflect the real cost of the loan; it can also include various bank commissions and insurance.
Don't be afraid to ask
If we talk about commissions and additional bank charges, then it is in them that the ins and outs of the entire loan can be hidden. The fact is that almost all banks offer express loans at approximately the same rate, and the main profit is made precisely from such additional payments. Unfortunately, bank employees are not always willing to explain to customers about such fees and insurance, fearing to scare him away. To establish the truth, the borrower has to study the loan agreement more closely. However, loan agreements are often "full of" abstruse terms and references to regulations that are not familiar to the client. If you do not understand something, then do not hesitate to ask the loan manager the questions you are interested in. This is by no means a sign of ignorance, but, on the contrary, emphasizes your desire to be serious about signing an important financial document.
How to avoid fines?
Most borrowers who have taken out an expensive express loan seek to repay it as soon as possible in order to avoid a huge overpayment. Banks, of course, do not want to lose their profits, especially if the borrower wants to repay the loan ahead of schedule after a couple of months. And if earlier banks could charge a commission for early repayment, now this is prohibited by law. However, many credit organizations began to act in a different way, without returning the insurance amount, which is charged immediately for the entire loan period and is included in the total loan amount. So, for example, if you borrowed 100 thousand rubles, then the total amount of the loan, including insurance, will be 150 thousand rubles. And even if you decide to repay the loan early next month, you still have to pay 150 thousand rubles. That is why, when applying for such loans, it is necessary to know in advance all the features of early repayment.
Situations are not excluded when a loan delay may arise. Therefore, it is better to inquire in advance about the possible sanctions of the bank for violation of the payment terms provided for in the loan agreement. Only after finding out all these points, you can realistically assess whether this bank is suitable for you for obtaining an express loan, or it is better to contact another credit organization that offers "fast" loans on more loyal terms.
