How to take a loan without undesirable consequences
We all had to borrow money at least once in our live. Someone is trying to borrow only from friends and realtives, because they think there will be no percent. But sometimes it happens that the loan amount is too large, and then you have to go to the bank. What is a loan, and how to take it without consequences for your wallet and your nerves and don’t spent too much time for taking it?
A loan is a cash provided by a lender to a borrower at a certain percent and time. Loans are issued to individuals and legal entities and are divided into non-earmarked ones — when a bank issues a certain amount for different needs of the borrower, example for living fee and for special-purpose loans with a clearly defined goal: for the purchase or repair of house, a car, for education, for buying electronics and for more goods.
All loans can be divided into secured and unsecured. For example, For example, quite common a loan on the security of an apartment, a car and any other real estate, which is commonly called a hypothec. As a rule, percent rates on unsecured loans are higher than on secured. On average, the percent for this type of loans are 18-25%. When for a loan there is secured a car or real estate, the percent are lower.
Who can take a loan?
Banks issue loans to adult citizens of that country and foreign citizens with a residence to certain conditions.
Microfinance organizations issue express loans without secured estate and proof of income — they just need to check your identification. For large loans, the requirements of banks for borrowers are different: they will give you the list of necessary documents.
Here is the minimum package of documents that will be asked in the bank:
Identity card or passport of a citizen of the country
Marriage certificate or the document which shows that you are not married;
Proof of income (certificate of work experience, description of the work performed, position and salary with the signature and stamp of the organization where you work);
There will be a list of special documents for an individual entrepreneur, since this will already be a credit for a legal entity.