Nowadays, almost everything can be purchased at the borrowed funds of the bank or other credit and financial organization, you can even calculate embezzlement by finding a credit calculator: car, real estate, education or rest. Even furniture, electrical appliances and household appliances can be bought on credit. To do this, the buyer needs to arrange a product loan. Such a credit product is quite popular in our country, because many citizens who have an average income level cannot buy expensive goods immediately, passing the necessary amount of money for it entirely.
In order to apply for a commodity loan, a person does not need to contact a credit institution and collect numerous certificates to provide creditors. All that the buyer of the goods on credit needs is to come to a trading institution that provides such credit services is to choose the washing machine you like, vacuum cleaner or cell phone, and apply with a passport and another document to a credit consultant or seller that will conclude a lending agreement with him.
The commodity loan belongs to the group of pledged loans. In this case, collateral is the goods purchased by the borrower on credit. If the debtor violates the terms of the loan agreement and repay this loan in a timely manner, the mortgage product will be confiscated. In addition, the creditor has the right to apply penalties prescribed in a loan agreement to him.
The main advantage of commodity lending is its easily accessibility and speed of design. After all, even a person with unfavorable credit history can buy the necessary goods on credit (although it all depends on the credit policy of the chosen bank), disabled person and pensioner. As for the design of the commodity loan, this procedure takes 20-60 minutes of time.
The disadvantages of commodity borrowing include the percentage of overpayment on a loan, the amount of which is carefully hidden by financial institutions in the value of the goods. Therefore, the borrower, in addition to the interest provided by the bank, will have to pay numerous commissions, insurance premiums, etc.D. In addition, the fact that in many stores are not employees of a banking institution, but sellers who do not have a special education, negatively affects the repayment of a commodity loan. Firstly, they may be made errors in the process of concluding an agreement with the borrower. Secondly, sellers can give incomplete, inaccurate information about the methods of repayment of the loan, about measures that can be applied to the buyer of goods on credit, if he inadequately fulfill debt obligations to the creditor bank.
But most borrowers on commodity loan are not scared by numerous hidden commissions and unprofessional sellers who act as consultants. Therefore, the commodity loan today is a demanded, relevant banking service.