Modern credit policy is well “tamed” most of the population. And today, if a person has chosen a new purchase for himself, he does not need to have the necessary amount in his pocket – you can take it on credit. All this simplicity, as it were, says: do not worry about anything, sign the agreement and go to the store. So, it is very important not to lose vigilance and clearly understand what you agree to when you take another loan.
Things to be consider when applying of a loan
When you have familiarized yourself with an attractive bank offer, remember that in addition to the basic loan rate, there may be additional expenses such as fees for processing your application, cash services, opening and maintaining an account, issuing the loan itself, and more. You need to be more careful when you take a loan from a bank and do not hesitate to ask questions arising during the paperwork.
Also pay attention to the availability of insurance for a loan, which, of course, will also be paid by the borrower. If, suddenly, you need notary services, you can safely add payment for these services to the full cost of the loan. Be sure to read the terms of the delay and delay in payment, the ability to repay the loan prematurely, because for all these individual “services” will have to pay out of pocket.
Annual interest in the bank
In microfinance companies, as a rule, there are no various additional payments. However, it is important to understand that the specified percentage in the loan is indicated not as an annual interest in the bank, but daily. If you translate these percentages into annual ones, you can get a huge figure of a thousand or even more percent. However, loans in MFIs are usually taken for a short time, 14 – 30 days. In addition, in April 2016, a law was passed prohibiting credit institutions from charging an amount exceeding 400% of the loan amount from borrowers.