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September 22, 2019
Finance

The Perfect Loan Options At the Time of Crisis

In a time of crisis, with banks tightening consumer credit and cash requirements, people have stopped looking for loans. In the newspapers and on the streets, advertisements such as “quick credit, lightning fast loan, 1 hour loan” and more began to appear. “No proof of income,” “money to buy an apartment, a car. No financial institution will give you such credit, “etc. At the same time, private lenders, unlike banks, promise their customers unrealistically favourable credit conditions. You can visit private loan options now.

Where’s the catch for borrowers?

  • Do not trust individuals, money lenders and pawnshops.
  • Private lenders are confident that they are ready to lend to borrowers within 3-7 days from $ 5-25,000 for a period of 25 years.
  • Find out if a private lender is truly licensed and will guarantee you security.
  • Best choice: Loans from banking and non-banking institutions.

Non-banking institutions

A minimum set of documents is required to obtain a loan: ID and permanent address. You do not need to provide income statements and additional sources of solvency. The age of the client and his possible debts are also not an obstacle to granting money.

Banking institutions

For comparison, the conditions for receiving money from a bank are as follows: a guarantee is called there, the so-called pledge, being issued only for against real estate with 18-20% annual interest, and the one-time loan utilization fee is 1.5-2%. The maximum loan amount is estimated – 50% of the value of the collateral. At the same time, the borrower must present an ID card, income statement, home ownership, and more.

Always be on the alert

Private traders also promise to lend, for example up to 50,000 dollars for 7 years at 3% annual interest, but is that what they really announce to you in the contract? The scheme for obtaining credit from private lenders, as follows, is: a borrower who has an identity card, a permanent address, and after verifying personal data, decides whether to grant him a loan

(For example: a private person buys a property, but if you fail to repay your instalments on time, he or she becomes the owner of the property, so do not trust such persons).

Credit products are so many and varied that it is sometimes difficult for a person to find the right loan for them. And this is useful and important for you to be able to choose the right one for the particular case. The names often imposed on them by banks and companies are more for marketing purposes than they can guide you. So here we will focus on the more popular products in general.

At first it is good to know that essentially loans are divided into secured and unsecured. All those who have a pledge are secured – a mortgage loan (the pledge is real estate), leases (the pledge is the commodity you buy for payment), etc. We will not rely on them, as well as company loans.

Standard (consumer) credit

Standard consumer credit is widespread enough that there are not so many questions about it. The bank or company lends you a specific amount for a certain period of time, for which you receive a payment plan and the corresponding repayment instalments.

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