Consumer credit: goals and benefits

A consumer loan is a loan issued for specific needs. It is not related to business activities and is issued to individuals. The main objective of such a loan is to meet the client’s needs: buying real estate, a car or expensive equipment, obtaining education and medical services, repairing an apartment or building a house.

Types of consumer loans

Before applying for a consumer loan, it is important to study all the nuances, consider the main types and options for lending.
Types of loans:

  • Targets. They are issued only for certain purchases and services. The bank transfers funds immediately to the store / seller. Often, this type of loan can be issued in a mobile phone store when purchasing a laptop or smartphone, in car dealerships, in travel companies, and in various stores.
  • Non-targeted ones. Funds are issued in cash or transferred to a bank card. The borrower can specify the purpose for lending as the repair or reconstruction of residential premises, refinancing of other credit products, payment for education in a higher or secondary specialized educational institution, and so on.
  • With or without collateral. In this case, the loan funds are issued against the security of a car, real estate and other property. It is also possible to issue a guarantee.
  • Short-term loans. Loans are issued for a period of several days to 12 months. Usually they are needed for urgent purchases during the discount period, for making burning tours.
  • Long-term options. The minimum term is 1 year, the maximum is set by a specific bank. On average, the contract is open for 3-5 years.

Each bank creates special offers in the line of consumer loans in Ukraine. So there are credit programs with the transfer of funds to salary cards, preferential conditions for pensioners and young families, a reduced rate for buying real estate or a car.

What do I need to apply for a consumer loan?

Conditions vary depending on the loan program. The bank can independently set requirements for borrowers, for example, increase or decrease the age limit, reduce the requested amount, or ask for an additional package of documents.

What you usually need to take out a consumer loan in Ukraine:

  1. Stable income. Usually, official proof of salary and other sources is required, such as data on the scholarship received, social benefits and benefits. You may have additional income from securities, private businesses, and so on. This should also be indicated in the application.
  2. Insurance. An optional point, however, if you have insurance, you can protect yourself and reduce possible credit risks, for example, save your mortgaged property. Also, the insurance will protect you in case of unforeseen situations when you lose your job or are incapacitated.
  3. Documents. First of all, you need a passport to confirm your identity, and sometimes you need other documents (such as a driver’s license).

It is mandatory to fill out the application form, the most convenient way is to register online. In this case, the procedure takes less time, and you can see the solution from the organization even without visiting the branches.

Consumer credit: goals and benefits

Advantages and disadvantages of consumer credit

If you are considering not only a consumer cash or credit card loan, but also other options for obtaining a loan, it is important to study this product from all angles. Therefore, we have prepared the pros and cons of such loans.


  • Prompt registration for the purchase of promotional or profitable goods. The product credit guarantees protection against price increases, as the current price is indicated during registration, even if it increases, you will pay the previously specified amount.
  • The ability to spend funds at your own discretion (when applying for a non-targeted loan). The bank may ask for expense reports, but this happens only in rare cases.
  • Low requirements for borrowers. No guarantors are required, and there are no strict rules for issuing insurance and additional banking products. Often, even with a small income, you can get a loan to buy furniture, appliances, pay for education and medical treatment. If you have a good credit history, sometimes you don’t even need a certificate from your place of work to confirm your income.
  • Quick receipt of funds. Most often — on the day of the request or within 24 hours after sending the questionnaire.


  • The interest rate. In the absence of collateral in many banks, the interest rate on targeted and non-targeted loans is higher than the average.
  • Loan terms. Most financial institutions try to issue credit funds for a shorter period of time — up to 1 year.


Consumer credit in Ukraine is a convenient and popular service that allows you to take the right amount for certain purposes. You can use it to get education and medical care, improve your living conditions, and plan a family vacation.

Before applying for a loan, be sure to study the terms and conditions, consult with our managers, and calculate the monthly payment. This will save the family budget without creating an increased financial burden.