Business loan rates today
Written by: Kiumbuku
The issues of falling into the “credit trap†were quite acute for many even before the global economic crisis. Now, when loan rates are rising, incomes are falling, and you don’t want to lower your standard of living, you should be especially attentive to the conditions offered by banks.
Loan rates are not the fruit of the imagination of the management of any particular bank. They depend on a number of factors, including macroeconomic ones. What exactly do you do when you need money? Let’s look for a solution.
What happened to the interest rates on loans in 2018?
At the end of October last year, the key rate of the Central Bank of the Russian Federation was 8.25%, now it has already reached 7.75%. After a terrible for many figure of 17% (at the end of 2015), this percentage is considered as very soft. At the same time loan rates also began their gradual movement down.
Today, the average rates of Russian banks fluctuate in quite attractive for consumers limits:
consumer – 10 [1] –21,39 [2] %;
mortgage – 6 [3] –10 [4] %;
car loans – 10.9 [5] –19.9 [6] %.
In addition, in order to stimulate consumer demand, a number of state programs were initiated as part of mortgage and car loans. These steps allowed to maintain the demand for loans, making them more accessible to the public. However, the economic crisis is still far from complete, and banks, to protect themselves from troubled borrowers and non-repayment of funds, check potential clients very carefully. Today, only those who have a high, stable income and a positive credit history can count on getting loans.
Today, speaking of loans, we have to keep in mind only the ruble ones, since until now the Russians are afraid of currency fluctuations and additional losses with considerable interest. And although, according to statistics, the volume of foreign currency lending in 2017 increased by almost 50% compared with 2016, and in 2010 decreased slightly, it is worth taking into account that retail lending in this segment is only about 1.5 %
What percentage of a loan can be taken today? Current offers of banks
As already mentioned, consumer, mortgage and car loans are issued at banks at different interest rates and under different conditions, due to their specificity.
Mortgage loan . Back in the midst of the crisis, in March 2015, banks began accepting applications for mortgage loans at 13% and even at 10% per annum. This became possible due to the allocation of 20 billion rubles by the Government of the Russian Federation. in support of mortgage lending. State support for mortgages in 2018 is carried out for certain segments of the population under various conditions. For example, a loan to teachers is given at a low interest rate, starting at 6% per annum, credit conditions will depend on the specific program of the bank in which the teacher participates. And for large families, the interest rate will be no more than 6% plus the state paid about 4% per annum. As for the standard terms of crediting (that is, those not falling under the state program), the rates fell somewhat and averaged 10.25-12.75%.
In any case, choosing the most favorable mortgage lending conditions, it is worth considering a few nuances:
Choose credit programs of large banks with a long history, a spotless reputation.
Buying a new building at the stage of excavation is now quite risky, pay attention to the proposals of a higher degree of readiness, however, please note that their cost will be higher.
Choosing a developer, evaluate its history and degree of reliability: how long has it been on the market, how many objects have already been commissioned and whether there have been no delays with the delivery of housing.
It is important that the equity agreement is concluded in accordance with Federal Law No. 214-¤—, which will exclude the possibility of fraud on the part of the developer and protect your investments in real estate in the event of its bankruptcy.
Car loan . Similarly to the program of preferential mortgage lending, in the spring of 2015 a program of state support for car loans was launched. And despite its termination in October last year, in 2018 it acts again. The list of cars on which benefits apply is almost the same. The interest on bank loans for preferential loans for buying a car depends on the current refinancing rate of the Central Bank and is calculated by the formula:
C = D – 2/3 × P, where:
C is your car loan interest rate;
D – the usual rate of the bank for the car loan program;
P is the current refinancing rate of the Central Bank of the Russian Federation.
Discount on the loan rate in the program in 2018 is not provided. The maximum rate of the loan agreement, subject to preferential car loans, is set at 17%. The cost of the car in this case should not exceed 1.5 million rubles.
Consumer credit . Depending on whether the client is ready to report to the bank in its spending or not, consumer loans can be targeted and non-earmarked.
Trust loan . Issued for specific needs, which are specified when you make an application. The loan amount will be limited to these needs, and the bank will need documents on the expenditure of funds. That is, if you take a loan for repairs, you will need to invite the brigade officially and keep all the checks for the purchase of building materials. The advantage of a target loan is a more favorable interest rate than on a non-earmarked one. The disadvantage is the limited amount and tight control by the bank. For example, Sberbank provided targeted loans for education at 12% per annum without government subsidies and at 7.75% per annum with subsidies, but since the beginning of 2018, the provision of educational loans with state support has been temporarily suspended.
Inappropriate loan . The bank does not ask you why you need money, and is theoretically ready to give you any amount, but at a rather high percentage. The minimum percentage of non-earmarked loans at Sberbank is 12%. However, as mentioned earlier, real bets are always higher.
When applying for a loan of this kind, it is worthwhile to give preference to targeted programs. Of course, you will have to provide a number of additional documents, but the percentages in this case will be lower. Also, a “positive credit historyâ€, which confirms income and a stable financial position, documents (reference 2-NDFL, documents for a car, a copy of employment record, etc.), which must be submitted when making a loan, can “play for a fallâ€.
Credit cards . The conditions of banks on credit cards are very diverse. Keep in mind that in the reviews and on the websites of banks minimum rates are presented. The real rate on a credit card is likely to be higher. Banks can offer loans at 18% and at 37% per annum. For example, “Credit Europe Bank†when issuing a MasterCard Card Credit Plus for an amount of up to 600,000 rubles offers a rate of 25%. Usually, banks reserve the right to set a rate depending on the outcome of the review of documents provided by the client. On average, you can count on the rate from 20 to 35%.
You can apply for a more favorable interest rate in case of a positive credit history, as well as submitting to the bank a maximum package of documents confirming your income. We do not recommend to issue express or instant cards. In this case, you will be offered very unprofitable interest rates from 35 to 50% per annum. You can save on interest payments by issuing a card with a preferential interest-free period. On average in Russia, its value ranges from 50 to 55 days. However, there are better deals. For example, Alfa-Bank has an interest-free period of 100 days (credit card “100 days without interestâ€).
Cash loan . Currently, cash loans are, frankly, expensive. The more cash you take, the lower the interest, but, first, the interest will still be a large amount, and secondly, the bank will decide how much money you can give. The average interest on loans in cash, subject to repayment of debt during the year – 11-25% per annum. Carefully consider the proposals of banks, in which there are very low numbers – for one reason or another they will later turn into the same 20%.
Express loan . Issued on the day of treatment upon presentation of a passport and, for example, a driver’s license, in the amount of a maximum of 500,000 rubles. Minimum rates range from 22-29%. Maximum – reaches 50%. The better the credit history, the lower the rate can be. For example, Renaissance Credit Bank offers the usual rate of 26.5% and for a good credit history – from 15.9%.
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