Over the last 10 years there has been a surge in consumer lending in Ukraine. Many people have enjoyed the opportunity to buy goods by returning the money for them in parts. After the 2008 crisis, such a rush has subsided, as many people have problems with debt repayments.
As a result, banking institutions have become picky about lending. Over the past few years, the situation has stabilized, so people are once again taking the opportunity to buy goods this way. What should a person in need of such a loan option know?
Making Money on Credit: Basic Options
You can take out a loan for a variety of purposes, as banks do not particularly restrict customers. This is the purchase of goods, repairs in the apartment, training, furniture and other options. For such loans, it is usually necessary to visit a banking institution to receive money. But when it comes to buying home appliances or other goods, you can get one at a particular store.
To obtain a loan from a banking institution, the borrower must provide a package of documents that will prove its solvency. If you wish to purchase goods or services on credit, prepare an invoice to be issued by the store. Your loan application will be reviewed within 3-4 days. If you decide to take an urgent express loan directly from the store, you will only have to spend a few hours waiting.
There are banks that are partners of various centers selling various products. You will be able to know in advance whether an institution can give you credit for their purchase at a particular store. Be sure to check out the financial institution’s personal page, because that’s where the partner store master data is.
Often, such a loan can be issued even at the cashier of the store. Larger centers almost always hire representatives of a particular bank who will arrange a loan for you right on the spot. You need to specify in advance which bank cooperates with the store. Also, learn the basic terms of a loan to find the best option for you, focusing on your options.
They issue credit through the cashier and transfer them to the seller’s account. You can choose the right option for you to be comfortable.
Basic lending programs
“Loans” and “mortgage” are the most popular lending programs. In the second case, you will have to pledge your valuable property (real estate). You can get money for repairs on the premises, for the purchase of expensive goods, for treatment, for business development, etc. Your valuable property should be worth 30-50% (determined by the bank) more than the total loan amount. Usually clients are offered up to 500,000 UAH. Money can be obtained for a maximum of five years. The collateral must be insured, but some banking institutions require you to purchase life insurance.
If you have opted for a “product on credit”, then you do not have to pledge property. The loan can be obtained for a different period of time: from one month to several years. If you suddenly need a large sum of money, you have to look for a guarantor. Some banks require the product and your life to be insured.
There is a certain interest rate on consumer credit. It depends on many factors: from the down payment to the age of the borrower. In most cases, it is necessary to repay the loan in equal installments within the prescribed period, which will be calculated by the bank. However, some banks offer options where early repayment can be made with a reduction in the interest rate on the body of the loan.
Basic requirements for the person who takes the loan
One of the main requirements of any financial institution – the solvency of a potential borrower – because without this there is a risk of not getting back their money.
There must be a stable income in excess of the total amount of the loan payments. To confirm your solvency, you can provide a certificate of income, for private entrepreneurs – a tax excerpt from the tax report, or in the case of unofficial employment contact colleagues who can telephone to confirm your employment. Borrowers who have been in business for over a year are welcome. In addition, you must live and work in the territory where the banking institution is located.