What is the difference between installments from a loan, loan: comparison, differences and similarities. What is better, more profitable to take: a loan, loan or installment plan? Who is given loans, installments, loans, and what documents are needed for their execution?

Among the wide variety of services that banks offer you are not difficult to get confused. Let's find out that it is better to take a loan, loan or installments when buying goods.

Sometimes it happens that you need to take some kind of product, but there is no necessary amount at the moment. And banking organizations, credit unions come to the rescue. There you can easily get installments, credit, loan and get the necessary product immediately, and only after that gradually pay off the debt. It’s just not clear what is better to draw up for the purchase of goods - installments or a loan, so that then, when repayment, do not overpay the incurred interest and the banking services commissions. Let's figure out details in this matter.

What is it, what does a loan, installment plan, loan mean: definition

Lending includes two main directions:

• Target - When the borrower takes a certain amount for the purchase of real estate.
• Inappropriate - Client of the Bank has funds for purchase technology, phone, car.

A bank client should always pay interest rates under the loan, return mandatory payments on time. In cases where the buyer delays the payment, the bank charges a penalty, a fine, but the purchase item is not seized. Only some lending consider this opportunity when non -payment of debt (loan for the purchase of housing, car).

Installment Provides the sales company. If the client wants to purchase this type of pile in order to purchase something, then the pledge will be the product. When the buyer does not make a return on time, then the lender has the right to pick up the purchase back. This type of loan is issued directly on the territory of the store where the purchase is made.

Loan - Agreement of the parties to provide the borrower from the lender of money or goods. In turn, the first undertakes to return the agreed amount of funds to the second person for a certain period of time. The loan can be issued in a pawnshop, a credit union, a bank in some organizations and institutions. A loan - it can be lending and installments.

IMPORTANT: Loans are provided for payment for repairs or service, for a tourist ticketand for the purchase of any product.

What is the difference between installments from a loan, loan: comparison, differences and similarities, pros and cons of

To understand what the differences between these terms should be understood in the features of financial transactions. Further more about this.

Differences between installments, lending:

• Design of transactions. When concluding an installment agreement, there are two parties that conclude an agreement - a merchant and a buyer. Installment is issued only for buying a service or product. Credit they are issued in the bank, and get It is possible cash. Installment plan can be issued without applications and approval by the bank branch. Moreover, until the buyer returns all the money for the purchase, he is in the pledge of the merchant. And the seller has every right to regain it if the buyer has not paid for his full cost.
• A loan is often provided after approval by a banking institution. The first contributions can be up to thirty percent of the cost of the goods.
• Lending Give at interest, and installments can be provided interest -free.
• At lending and installments dates vary. In particular, loans give for longer terms than installments.
• When drawing up an installment agreement, you must carefully read all the conditions. They often offer additional services for which you will need to subsequently pay a fee. When drawing up a loan agreement, bank employees offer insurance, in some cases, it can be avoided. Since the insurance procedure is not free so that it is not news for you, read the lending conditions.
• If the buyer decides to pay off An ahead of schedule, then this is only welcome. And premature payment loan In some banking organizations may be accompanied penalties.

What is better, more profitable to take: a loan, loan or installment plan?

In each case, all for and against the design of a loan or loan, or maybe installments, should be taken into account.

It is noteworthy that in order to purchase goods by installments, you do not need to spend your time on collecting a package of documentation or looking for guarantors from the outside. The installment conditions are softer in the sense that the client may, by mutual agreement, extend the debt repayment period. This is a big plus for installing installments. But in practice, trade organizations often draw up lending through partner banks, they are so profitable, and installments are given only to regular customers who have earned trust.

Loan It can be obtained in a credit institution. It is much more difficult to arrange it than lending or installments. It is necessary to comply with a number of requirements, to collect many important and not particularly significant documents. You will also have to prove that you are able to pay off the debt on the loan, go through an audit by a banking institution. And interestingly, the committee of the banking organization, in the end, may not approve the loan.

You have the right to ask in this case lending to another bank. Perhaps you are lucky there. More, as a way out of the unpleasant situation created, you can use express Credit. This is if you need funds urgently, in other cases it is better not to take such lending, since there are high interest rates and insurance is often required.

By paying off the loan, the client is not entitled to change the terms of the contract. All debts will have to be paid only on time. Otherwise, there will be a penalty and a fine for each day of delay.

Who is given loans, installments, loans, and what documents are needed for their execution?

Customers who have a good credit history give loans, installments, etc. If the buyer wants to take installments for the service or purchase of goods, then it is enough to issue a card in the bank and pay for the purchase. Installment is given for three, five, six, twelve months. Loans for a year or more. Loans can be given for a longer period.

Usually, for lending, you should collect lots of documents. You will need it and the passportMoreover, the address in it should be indicated in the region where the client is going to take a loan. It will also be required:

• the taxpayer identification number
• help on the average monthly earnings
• a questionnaire that should be filled in financial security

Bank employees when issuing a loan pay attention to wages. It should be several times higher than monthly lending deductions.

Is it profitable to take money in installments and put it on a bank account?

Many are interested in the question of whether it is possible to take funds in installments, and then invest them in a deposit in order to get benefits. Of course, this is possible, but only each case is individual.

If you invest money on a deposit, then it is undesirable to withdraw them every month, since interest, that they run in a month, are minimal. Therefore, you will need to repay installments from your pocket.

You should take into account the installment conditions and calculate whether there are any additional payments for using this type of lending, for example, cashing money from the card, a commission for using a credit card, insurance, etc. Because investments will not be able to fully extinguish all these costs. Typically, the growth of annual interest on deposits is much less than these expenses.

Therefore, before performing this action, carefully read all the conditions of installments, deposit, do not be lazy to read and small font. Important information is also provided there. And only after that, draw the calculations and draw conclusions.

Is there an installment plan in a credit history?