How to get a loan: tips + experience
How to get a loan? The market for financial services provided by banks is very diverse. There are dozens of options for obtaining a consumer loan in each organization.
After all, the amount of credit, the speed of receipt and the minimum requirements for the borrower can affect the interest rate, affect the cost of additional insurance. Before you take a good loan, you should carefully consider the terms of the loan agreement.
It’s best to do this by comparing different programs across multiple banks, because even a half-percentage difference in the rate will affect the final amount of the debt. In addition, before applying for a loan, it is necessary to assess the possibilities for its repayment, because the debt will have to be repaid. We will detail how to get a good loan in this article.
Purpose of the loan
Before starting to draw up documents for a consumer loan, you need to decide on the type:
- Purpose – a loan of funds aimed at specific needs. This may be the purchase of expensive goods (real estate, transport), payment for expensive services (education, repairs, recreation, etc.). Money in this case is transferred directly to the seller of goods or services.
- Non-targeted – receiving cash or a card with the required amount without indicating the purposes for which it will be spent.
The first type of lending is easier to get, however, it may be necessary to solve additional nuances, purchase additional services. For example, you will need to buy CASCO if you want to get a car loan. In addition, it will be necessary to provide the bank with proof of the intended use of funds. This can be an estimate for a company that renovates an apartment or a calculation of the cost of a tour from a travel company.
Before you get a cash loan for non-targeted needs, you will have to go through a thorough bank check. Such a banking product has another disadvantage – an increased interest rate.
To choose the most comfortable conditions, the amount of the monthly payment and the term for repaying the debt, use the loan calculator on the websites of various banks. This will allow you to first assess your strength, the burden on the family budget.
In addition, the use of a loan calculator will help you correctly choose financial institutions that you should apply for in the first place. Indeed, as a rule, the calculations from this program will be quite close to the real financial burden and overpayments that you will face when choosing a particular lending program in a particular bank.
To obtain a loan, you must collect a package of documents. You will need at least a passport of a citizen of the Russian Federation and an application. And some banks issue loans using only these documents. The rest of the set of documents depends on the lending program and the requirements of the bank. Most often needed:
- certificate 2-NDFL or in the form of a bank, reflecting the income of the borrower for the quarter;
- photocopy of labor.
In addition, STS, TIN and SNILS may be required. And, for example, before you take out a loan for education, you should take care of obtaining an agreement with an educational institution. The most popular credit products are unified and are considered as independent banking programs – mortgages, car loans.
How to choose the best loan program?
How to get a consumer loan and not overpay? – the main question that pops up in the minds of potential borrowers. Definitely, the answer to it will not be the very first offer in the nearest bank branch.
And before you sign a specific contract, you need to carefully consider your needs, think about how to pay off the loan. After that, you need to study a large number of offers from different banks (you can do this online) and choose the most profitable one.
Consider the most common types of lending, which are provided in almost all banking organizations.
A small amount (about 70 thousand 🪙) and the need to urgently receive money is a problem that occurs frequently. Therefore, financial institutions often issue express loans. To get approval for this type of lending, you need a passport and an application.
The process of registration and receipt of money takes up to half an hour. At the same time, cash can be obtained not only in banks, but also in organizations involved in microfinance.
At the same time, you will have to pay from your wallet for the speed of registration and increased risks of a financial institution, because the interest rate on such a loan can reach 80% per annum. Most often, under such programs, money is issued for a period of 1 to 3 years. This may be one way for the unemployed to get a loan.
Loan without guarantors and collateral
If there is a need to receive a large amount, but there is no opportunity (or desire) to attract guarantors or provide collateral, you can use a simplified credit scheme. However, you will still need to provide:
- additional identity document;
- certificate 2-NDFL;
- photocopy of work book.
In addition, you will need to fill out a questionnaire and meet additional requirements: have a good credit history and work experience at the last place of work for at least six months. An application for such a banking product is considered from half an hour to three days, and the amount can reach 2 million 🪙. It is issued for a period of six months to five years.
No job references
Such a financial service is aimed at solving problems related to how to get a loan without a job, or rather, without a certificate of employment, and how to get a loan for a student.
Some categories of people simply do not have the opportunity to receive this coveted certificate, or it may not reflect the full income of the borrower. In this case, you will have to prove financial solvency: provide a bank statement, a certificate of property or documents confirming the purchase of expensive goods over the past year.
In addition, a good credit history is required. If you meet all these requirements, you can receive an amount of up to one and a half million 🪙, for up to 7 years. In this case, the interest rate will be slightly higher than that of the previous type of lending.
To buy goods
Most large retailers, as well as companies providing services, today provide an opportunity to purchase goods and services on credit directly in front of the cash desk or at the company’s office.
This type of lending is an express loan, and only a passport and an application are required to obtain it. Often such a loan is carefully disguised as an interest-free installment plan, however, to obtain it, you will either need to buy additional accessories, use additional services, or the interest rate will already be included in the cost of the goods.
Such offers are a great way to get a loan for a student and the opportunity to purchase goods on credit for the unemployed. Again, this will require a positive credit history.
Mortgage and car loans
Most banks have in their “arsenal" loan products aimed at purchasing a home or a car. Interest rates and conditions for granting such loans differ depending on the rules of the bank and the required loan amount.
When planning to buy a car or an apartment, you should pay attention to such targeted programs, because, often, the required amounts are too large and do not fall under the approval of other banking products.
A car loan is issued for a period of up to 6 years, and a mortgage – up to 30. At the same time, the rates for these services are lower than when receiving non-targeted money. Of the disadvantages of such lending, one can single out the need to collect a large package of documents and strict control by the bank over each stage of the transaction.
What to look out for
After choosing the right program, it is important to carefully read the terms of the contract, to clarify issues such as:
- Monthly payment. Find out from the manager the full amount of debt that will need to be repaid, the schedule and amount of monthly payments.
- The cost of additional services. Banks may charge a fee for processing an application, charge a fee for issuing funds, or deduct a fee for a money transfer.
- Loan repayment. Just in case, you should learn about the penalties and costs for early repayment of debt, about ways to pay it off. The more payment options, the more convenient it will be to pay off the debt.
- Insurance. Banks often include life insurance in the contract. These are optional expenses and can be waived by law.
- Late fee. It is also worth clarifying: what sanctions are imposed when the loan is overdue, after what period of delay in payment the organization will require early repayment of the debt.
There are several ways to apply for a loan:
- The usual way is to contact the nearest branch. This will allow you to get answers to all your questions, consult in search of the best option for a particular case. The disadvantages of this method are: dependence on the opening hours of a bank branch, a live queue and the location of the office.
- Online application – allows you to send applications to several organizations at once, avoiding queues and not wasting time on the road to the office.
In addition, you can apply for an application from representatives of a financial institution working outside the branches. It can be a mini-office in a shopping center, airport. Also, a bank employee can travel to your place of work or home.
Probability of being denied a loan
Today it is enough just to use credit services, but the probability of approval of the application is far from one hundred percent. The bank does not disclose the reasons for its negative response, but most often the reasons are:
- Insufficient income or inability to verify additional sources of income.
- Inaccuracy of the information provided in the application. Bank officials check the data provided by the borrower, and false information reduces the likelihood of a positive decision to zero.
- Bad credit history, high utility bills.
- Frequent offenses, criminal record.
- Mistakes made in the preparation of documents.
In addition, you can be refused due to the complete lack of credit history. It is unlikely that the bank will approve a non-targeted loan for a large amount with the first loan. Therefore, if the money is not urgently needed, but a large amount is needed, you can get small loans and quickly pay them off. This will help increase the chances of your application being approved. Do not forget about the completeness, as well as the veracity of the information. The more documents provided, the higher the chance of receiving money.
How to get a loan without a formal job
To obtain a loan without an official income or with a low “white” salary, you will need to make a little more effort than using a simple 2-personal income tax certificate. To get a positive decision from the lender, you just need to follow five simple rules that will tell you how to get a loan without work in the official sense.
Some banks do not require confirmation of income on the 2-NDFL certificate. As evidence of the solvency of the borrower, they can consider:
- international passport, in which the trip abroad for the last year is noted;
- Title for a car that is not older than 5 years and which is registered in your name;
- documents confirming the purchase of an apartment, the prescription of which has not passed the “5 years” mark;
- contract for additional life and health insurance.
These are the main documentary evidence of income levels that most banks accept and will help the unemployed get a loan. In some organizations, this list can be much longer, so it’s worth finding out as much information as possible on the spot.
It makes no sense to embellish your financial situation. You can get a refusal long before the question of having a permanent job arises. Lies about delays with other credit organizations, exaggeration of your income – all this is carefully checked, and the lender’s employees will definitely contact people from your environment, ask questions that will give them the opportunity to understand your real income level.
If your relative or friend can vouch for you, do not neglect this opportunity. The bank with great desire will transfer money to your account if you introduce a guarantor or co-borrower to it, because this means that the debt will be repaid on time without risks for a loved one.
If you own real estate or a car and are ready to pledge it as proof of your intention to pay off the debt, the probability of getting approval from the bank is close to 100%. It is important that the mortgaged property is more expensive than the loan amount by about 2 times. Those. to secure a loan of half a million, property with a market value close to a million is suitable.
Timely repayment of debts
The fifth rule is not a rule, but rather a statement of fact. You must have a credit history with no bad debts. Don’t delay! The presence of a fully repaid debt for the last year will become an additional guarantor of solvency.
These simple five points will become the main assistants and instructions on how to get a loan without a job.
The easiest way to get a loan
The least simple way to receive funds under the loan program on the most favorable terms today is to apply online to several credit institutions at once. They will not only quickly respond to the request, but also provide the conditions for receiving funds, after reading which you can make the most rational and informed decision.
By providing complete and reliable data about yourself and the state of income, you can be almost certainly sure that the lender’s decision will be positive. The willingness to enlist the support of a relative or close person, as well as the ability to provide property as collateral, further increases the chances of success, regardless of the purpose of lending.
To further simplify the application process, you can contact organizations – aggregators of banking services. It is possible that they will take a commission for their services. But they can become an additional guarantor, helping to approve the application and just a way to save time, and time = money.
How to save on credit?
Yes, save. Further lower the interest rate. And, therefore, both the monthly payment and the total amount of debt are possible. For example, if you contact an organization to the account in which a salary, pension or additional income is transferred monthly. As a rule, payroll clients are offered programs on preferential terms.
In addition, to obtain approval, you do not need to provide a certificate of income, and by providing a pledge or a guarantor, by taking out additional life and health insurance, you can further reduce the interest rate, because it directly depends on the risks of the bank, and the lower they are, the lower the interest which he will have to pay. The program responsible for reviewing loan applications will consider all this information automatically. An additional benefit can be obtained if you use a cashback card. And pay the costs of non-targeted (and sometimes targeted) operations with its help.
In addition, it is worth noting that it is important to pay attention not only to the bank’s interest rate. But also on his reputation, the desire to “impose” unnecessary services to increase the chance of a positive decision. Any promises of a bank employee should not be made only orally. Everything must be spelled out in the contract. Therefore, once again: carefully read all the information provided in the contract. And do not settle for the very first positive decision of the first office.
You should not take a loan in foreign currency. After all, all the financial risks associated with the fall of its exchange rate will be borne by the recipient of the loan. Not to the bank.
If you have a deposit in a bank, it is better not to take a loan there. If the bank loses its license, you will not be able to withdraw your deposit until the debt is paid off.
It is important to calculate your “financial health” and not give more than 30-40% of your income to pay off debt. Unless, of course, it is ten times higher than the subsistence level. Then it is possible, without worsening the standard of living, to give all 50%.
And do not forget that there are loans for needs. For example, an education that will increase your value in the labor market. Or housing that will improve living conditions. And there is – to satisfy the whims of which, you can refuse.
Briefly about the main
You can choose a loan with a comfortable payment, term and interest rate. Unless, of course, the money is needed urgently and you don’t have to run to the first branch. Which promises to resolve the issue of lending within half an hour, and the issuance of money within a day. A careful selection and comparison of the possible number of proposals will reduce the financial burden on the family budget. Even a 100 🪙 difference in monthly mortgage payment for 10 years will save 12 thousand. And the difference and terms are very different from these completely “imperceptible” numbers.
Remember that there are a lot of offers. And, if you have not received approval from one bank, this is not a reason to be upset. Worth trying again. But already in another credit institution, and even after several refusals, there is still a chance to get approval.