When you need to make a large purchase, and there is not enough savings, a consumer loan can be a logical solution to the problem. A consumer loan is money that you borrow from a bank to buy goods and services for yourself or your family. It is a type of loan issued only to individuals, it cannot be issued to a company.
Different financial institutions offer a tarbimislaen. They can be obtained from microfinance organizations (MFIs), consumer credit cooperatives, and pawnshops. This is the same as a loan, but the terms of the loan can be very different from the terms of the loan.
A consumer loan can be taken for a specific purchase – targeted, or without specifying the upcoming expenses. Like any other loan, you have to adhere to the right repayment procedures.
What to Know About the Payment of a Consumer Loan
- If you took out a loan, but for some reason cannot repay, it is better to immediately inform the lender about it. Most likely, the bank will help you find a solution:
- You can restructure the loan together with the bank. Change the terms of the agreement to make it easier for you to repay it. For example, lower the monthly payment amount by increasing the loan maturity,
- or change the payment currency, or to refinance the debt – to issue a new loan in this or any other bank on more comfortable terms for you to pay off the previous loan.
- In some situations, the bank has the right to demand early repayment of the loan:
- if you constantly violated the terms of the contract for six months: for example, you paid the loan with delays of more than 60 days or did not pay the entire monthly amount;
- if you took a targeted loan but spent the money for purposes that were not specified in the contract (for example, you took out a loan to buy household appliances, but spent it on vacation);
- if under the contract you were supposed to insure the liability for the loan or the subject of the pledge but did not do so within 30 days.
With a competent approach to finance, you cannot postpone your dreams until tomorrow. The main thing is to be attentive to the choice of a lender, to carefully assess your financial capabilities, calculating a comfortable monthly payment amount so that a consumer loan or loan does not become a heavy burden for you and your budget.