Betting Express loans
Posted on Nov 3, 2000 08:15:27 AM
The development of the credit market leads to the appearance and widespread distribution of increasingly easy-to-end consumer offers. Among them, first and foremost it is worth noting becoming widely popular express loan. It is clear that the rapid obtaining express credit, reflected in the title – one of the most attractive aspects of such services, but much to its merits and should include no requirement of guarantee, statement of earnings.
The cost of engaging in credit is quite high: not only that banks declare up to 19% per annum, so they are usually silent about the charges for so-called “account management”. Consumers, this “detail” may result in 0,2-0,9% of the total monthly. But for the banks express car loan is not always beneficial. “All the banks involved in express-credit, are at risk. According to our calculations, they could lose 30 to 50% of their capital “- the chairman of the board of directors of the bank” Northern Treasury “Vladimir Frolov.
Express loans are usually limited to a relatively small amount of the loan of about half a million rubles. The size of the initial deposit of not less than 20%. If we calculate how much it would overpay for quick loans and the classics, it turns out that rapid credit overpayments, taking into account additional fees can be twice higher than in classic car loans.
The rate is much higher than the average classical loans. This is understandable: the bank in a hurry to get their money, to compensate for the risks, because he has little or no guarantees: no peer-reviewed the creditworthiness of the borrower, nor a clear credit history.
The table shows the conditions of several banks, leaders of the express credit.
Bank / Terms of Max. amount (Euro) Term (months) Interest rate USD (%) One-time Commission (Euro) Monthly fee (%), Russian Standard 450 000 60 11.99 0.99 No Renaissance Capital 750 000 48 12.9 No 0.45 Credit Europe Bank 750 000 1948 from 0,65 to 0,85 (in months). Rosbank 4500 No 600 000 36 from 10 to 10.5 No 0,3 to 0,4 Sobinbank 450 000 48 from 9 to 12 0.5 No Rusfinance 600 000 (if a large amount, then the need. ext. papers) 60 September 3000 No Alfabank 420 000 36 from 9 No 0.1 NB Trust 450 000 36 9 0.9 No
A closer study of the rates and conditions of these banks can be seen that all the conditions are almost identical. Not as many banks with conditions that do not charge an additional fee for monthly service, do not differentiate interest rates depending on the amount and term lending.
If the overall comparison of classical and rapid crediting to the naked eye visible flaws Express: high-interest, low loan amount and loan terms. We can conclude: people who do not want to wait a long time and want to get what you want now, overpay for time savings.
bank, commission, express, financing, loan amount,- Express loans in stores
- Preferential car loans
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