Today, banks offer a variety of various types of loans for the purchase of an apartment, car, household appliances or other material assets, which require a large amount of money. As well as targeted consumer loans – to pay for a child’s studies, for repairs, for holidays and for other purposes …
It is clear that it is better to take a loan from the bank with the lowest interest rate and the best conditions for obtaining and servicing it. To choose such a bank, you need to deal with the main parameters of the loan, affecting its value. These parameters should be paid attention first of all – and this is the currency, loan term, interest rate, type of payments.
First, you need to decide on the loan currency. The main credit currencies are hryvnia and dollar. The stability of the currency depends on the interest rate of the loan. In dollars, as a rule, cheaper, and in hryvnias – the rate is more than two and a half times higher, and sometimes even more. If you want to take a loan in dollars, you need to assess the risk that the hryvnia is very sensitive to the economic situation in the country and the world, and with very large changes in the rate, the loan can become a big burden for your budget.
The second parameter is a method of calculating loan payments, in turn they are divided into two of the most common – differentiated and annuity. With a differentiated method of calculation, the payment schedule is calculated as follows – the body (amount) of the loan is divided into equal monthly payments plus a monthly percentage. With this method of calculation, at the beginning of the loan payment term, the monthly payment amount will be high, but by the end of the term it will decrease. In case of annuity, interest is added to the loan amount for the entire period of using the loan, then this amount is divided by the number of months. As a result, we get an equal amount of payments for the entire period of using the loan. Calculation of payments, since the currency of the loan cannot be changed after signing the contract. The recommendation is to take a loan in the currency in which you have the main income.
When choosing a loan, you should pay attention to how quickly the bank is ready to give you a loan. If in the shortest possible time and with a minimum package of documents, then usually such offers are the most disadvantageous, which means expensive. Also, when lending for long periods, the loan rate is usually high.
When signing the contract, be sure to carefully study the document and ask all your questions. It is worth directly asking the bank employees about the final monthly payment. Also ask to show the payment schedule for the loan amount that you are going to borrow. After reading the full information, you should make the final decision.