If 5-7 years ago, bank lending was more designed for legal entities, over the last few years the situation has changed dramatically and the banks have to lend to people massively program of consumer loans. And the greatest popularity received a cash loan by which a borrower can obtain a sufficiently large sum of money for any purpose, without any collateral, guarantors or documents confirming income. But despite the fact that many customers have already evaluated the profitability of the banking product, there are at least three common myths about credit in cash, which actually have nothing to do with reality.
Myth 1. Get a cash loan is a snap. As you know, banks are positioning consumer loan without collateral and guarantors, as the most affordable loan. But this is just an advertising ploy that is needed to attract new potential customers. The fact that a loan for such a program, in theory, quite easy, you just have to give only a few identification documents. But in fact, if the bank has no comprehensive information on the borrower and his income, he can not properly assess its financial condition. And therefore, if the lender will at least some doubt as to whether the borrower pays the debt, he would prefer to deny credit. Unfortunately, this leads to the fact that banks often refuse to issue a credit solvent and quite conscientious borrowers. So get credit in cash from the first time may not be possible even in well-reputed client.
Myth 2. If a bank goes bankrupt, you will not have to repay the loan. This is not so! Even if the bank completely cease operations, it will be the transferee that a borrower will repay the debt. Furthermore, in case of his bankruptcy or liquidation, the credit institution may sell loans outstanding collection agency. So give the loan and accrued interest to the client will have to anyway.
Myth 3. If the borrower can not repay the loan in cash, the bank immediately submits it to the court or give a debt collection agency. The main goal of any credit institution - a profit in the long run. And when you consider that the interest on the loan - it is the main source of income of the bank, it is quite natural that the creditor is primarily interested in the fact that the borrower pays the debt for the entire loan period. Therefore, if the client have difficulty with repayment, the bank is required to go to meet him, offer debt restructuring or even vacation credit. Lawsuits in the courts, the sale of debt collectors - this is an extreme and highly unpopular measure, which is used only in respect of non-payers.