What you need to know about credit rates?August 9, 2018
A person choosing a loan offer necessarily pays attention to the interest rate. It is one of the important indicators of the cost of a loan. Everyone chooses the bank offering the lowest percentage. Rates are subject to applicable regulations and laws. Quickly get a loan in Kiev at the most optimal rates - this is the reality of our days. Using online procedures will allow you to do this in minutes.
However, low interest rates are deceptive and the cost is higher than expected. Of great importance is the type of bet and payment. There are annuity and differentiated payments. The first - the same amount of payment for the entire period, the second -
Factors influencing interest rate
Credit organizations in the preparation of proposals take into account:
• Loan amount.
• Credit history.
• Credit term.
• The size of the down payment.
• Material security - mortgage property, guarantees, securities, insurance (especially for mortgages and car loans)
• Advantage: regular customer, budget worker with a salary or pension card of the selected bank.
Types of credit loans:
3. Consumer untargeted.
4. Consumer target.
Types of lending rates
Banks mainly conclude contracts with fixed interest rates. This gives the borrower the opportunity to calculate the load and know the cost of the loan.
There are variable over time, that is, floating, lending rates. Initially, the percentage is low, but at any time may change. The cost is not known in advance.
At a mixed credit rate, half of the term is paid at a variable, half - at a fixed. In contrast to the variable, there is protection against a high appreciation.
Why can the interest rate change?
Change is possible in two directions - a decrease on the initiative of the client, an increase on the initiative of the creditor.
To reduce the need to write a statement. If low interest rates are found in another financial organization, then there is a refinancing procedure for this — transferring a debt obligation with a decrease in loan interest.
Read the loan agreement carefully.It describes the situations when and why an interest rate increase may occur without the consent of the title borrower.
If a change has occurred, and the agreement does not contain information about this, then it is necessary to apply to the court for filing an application, as this is illegal in accordance with article 29 of the Law on Banks and Banking Activities.