Perhaps every person at least once in their life had to face a situation when they urgently needed money, and their savings were not enough. In such cases, most citizens apply to the bank for a loan, but their needs do not always coincide with the target credit programs of a particular financial institution. Then the only way out is loans for urgent needs, which are offered in almost every bank.
What is the special feature of emergency loans?
Loans for urgent needs are classified as non-earmarked. Non-target loans differ from target loans in that the money received within them can be used by the borrower at their discretion. Of course, when filling out the form, the applicant will still have to fill in the “goals” column, but it is more formal since there will be no bank control over the expenditure of money. In different banks, a loan for urgent needs may have its own specific type. So some financial organizations offer Express credit, others-a cash loan, and others-a loan without certificates and guarantors. However, despite the different names, these credit products are almost identical in essence.
All of them are issued quickly enough, documents will be required from the borrower, at least, the form of issue-cash. What they have in common is a high bid. For example, for Express loans that are issued only on two documents within 30 minutes, the loan fee can reach 50% per annum. A regular cash loan with a certificate of income will cost at least 24% per year. As a rule, all non-target loans are subject to return to the bank no later than a year and a half after issuance.
How is a loan issued for urgent needs?
Making a loan for urgent needs will not be a problem for the applicant. They can apply directly at a branch of a financial institution, or via the Internet. And in the latter case, the borrower will save time, because, in just half an hour, he will notify several banks of his desire to get a loan at once. However, a visit to the bank can not be avoided in any case. In addition, the emergency loan applicant must be between 25 and 65 years of age and have a registration at the place of application. Despite the fact that the bank does not receive many documents from the borrower, it still checks the future debtor fairly carefully for reliability. To do this, all the phone numbers specified in the questionnaire are called and the authenticity of the information specified by the borrower is verified.
In addition, the bank will certainly make a request to the BKI, and if a person has ever taken a loan, all the information about its repayment will appear before the lender clearly. However, the presence of more than one delay in the past may cause the loan to be refused or a clause with an additional commission may be added to the loan agreement, which will affect the final overpayment.
Is the loan for urgent needs always justified?
Emergency loans can, of course, be a great help when money is really needed urgently, but any sane borrower should understand that if he has the opportunity to somehow influence the rate, do not neglect it. First of all, you need to determine how urgent the need for money is; if it is possible to wait 2-3 days, it is better to apply for a regular cash loan and try to collect all possible documents during this time.
Remember, with each additional paper, the loan rate will decrease by several points. In addition, a more thorough approach to registration will make it possible to ask the bank for a large amount. If the bank has a list of credit programs that will meet your goal, it is better to issue a target loan, because it will be somewhere much cheaper.