Lending is considered one of the most common banking services. Let’s find out what kinds of credits are possible in the Republic of Belarus. Let’s consider the information necessary for the future client of the banking structure or MFI.
Types of loans in the Republic of Belarus: popular options
Forms of credit in RBThere are many types of credit in Belarus, but not all of them are equally widespread and relevant.
Lending on favorable terms. This is a type of financial relationship in which one person, or lender, provides another to use an agreed amount of money subject to stated conditions: payment, urgency, and repayment. So one of the most important conditions – is the loan secured (collateral, surety) or unsecured.
The greatest loyalty is shown to customers with a positive credit history, with work experience in the current place of six months and with payroll cards.
The main classification by which types of credit are distinguished is the purpose of the loan:
- Bank loan (trust loans,secured loans, loans under the guarantees of others);
- Commercial credit (a non-cash loan between legal entities);
- Promissory note (a type of commercial credit);
- Government credit;
- International credit;
- Loans from private lenders (most popular are Online Payday Loans borrowed for small amounts and short terms).
Common forms of lending in Belarus are:
- Consumer loans – the execution of consumer loans is considered one of the most popular types of bank lending. It is a non-purpose loan for the purchase of items for personal consumption, such as installment loans, credit cards. How to use it each decides for himself. For vacations or travel, to pay for goods or services, etc.
- Car loans are a loan for the purchase of a car. This is an auto loan, where the car is used as collateral. The loan is taken out at the bank or in a car dealership through partner organizations;
- Real Estate Loans or Mortgage Loans – a special-purpose loan in which the property being purchased is used as collateral. Because of the high amounts, this type of loan has the longest terms and highest overpayments.
- Leasing is one of the types of financial loans, the essence of which is to credit the acquisition of fixed assets. It is also targeted.
Characteristics of any type of credit in RB
- Currency. All types of loans in the Republic of Belarus are issued in the national currency – Belarusian rubles, it is regulated by law.
- Amount. Necessary amount of money.
- Term. A loan can be short-term – up to one year, and long-term – over one year.
- Interest rate. The amount of interest you pay for the use of the loan. With the advent of unscrupulous MFIs on the market, there is a misconception that the shorter the term of the loan – the higher the interest on the loan. This is not entirely true. With the right approach, you can take the money for a short term at low interest. That’s why we recommend a reliable partner.
- The conditions for granting the loan may be different. Consequently, these are: citizenship or registration, good credit history, availability of telephone for communication, availability of permanent income, age from 18 years old.