According to the law, any loan agreement for consumer lending contains two parts: individual conditions contracts and general The first part must be in tabular form.
Basic provisions regarding individual conditions
General terms of the agreement consumer loan– clauses of the document that are the same for all borrowers according to this species lending. Individual terms reflect those parameters of the agreement that apply to a specific transaction: amount, interest rate, terms, commissions, collateral, repayment procedure, contact details of the parties to the transaction and ways of exchanging information, etc.
Such conditions are drawn up in the form of a table, which must contain 3 columns and at least 16 lines. Additional parameters required by both the client and the bank are listed below and numbered in order, starting from point 17. The tabular view is fixed by law and cannot be changed. If a certain condition is missing in the form, the corresponding mark (“Missing” or “Not Applicable”) is simply placed, but it is forbidden to remove it.
Both groups of conditions - both general and individual - must correspond to each other. If a contradiction is revealed in the document, then only the individual terms of the contract are recognized as legitimate (valid).
During the time until the loan is received by the borrower (up to 3 business days, taking into account the transfer of funds to the account), the lender does not have the right to unilaterally adjust the individual part of the agreement.
The terms of a consumer loan typically vary depending on credit policy creditor. Special conditions are provided depending on:
personal characteristics of the client:
- quality of credit history;
- availability of collateral;
- work experience;
- the fact of official confirmation of employment;
- amount of income;
- registration of insurance;
- availability of property, etc.
his belonging to a certain group:
- employees of a certain enterprise;
- pensioners;
- young family and so on.
General terms and conditions of a consumer loan agreement using the example of Sovcombank
The general terms and conditions of the Sovcombank loan agreement contain the following clauses:
- general terms and definitions with explanations of their meanings;
- general provisions;
- methods of issuing funds and repaying debt;
- rights and obligations of both the borrower and the bank;
- client responsibility;
- bank accounting for the borrower's account;
- provisions on payment cards.
Individual conditions using the example of Sberbank
Individual conditions applied in Sberbank regarding a consumer loan agreement, which include :
- loan amount approved by the bank;
- formula on the start date of the agreement - from the date of signing - and the end of its validity;
- the procedure for establishing the exchange rate if the loan is not issued in rubles;
- the frequency and amount of payments to repay the loan is monthly or quarterly; the amount of payment is not indicated, but a link to the schedule is given, because amounts will vary due to additional contributions;
- order early repayment, which is possible upon application, which mentions the date of the transaction, the amount and the account from which the funds will be transferred. The minimum amount of the loan to be repaid ahead of schedule is not limited. There is no transaction fee;
- an indication that payments under the agreement are possible through automatic debiting of money from a certain account, including from the account of one of the debit bank cards client;
- the fact that you can replenish the account from which the debit is made for free by depositing funds into an account opened with Sberbank, in one of its structural divisions(with the help of an employee) or through terminals;
- insurance - if it is initially provided, then its type and features are prescribed;
- collateral depending on the requirements of the loan program;
- lending purposes – consumer;
- a clause stating that 20% will be charged on the amount of late payment;
- that the bank can transfer the right of claim under the Agreement to third parties. The borrower has the right to prohibit the transfer of the right to claim the loan to third parties;
- that the borrower has read and fully agrees with the general terms and conditions of the agreement;
- services - listed if necessary - provided to the client for additional fee by the creditor, which is a mandatory condition of the signed agreement;
- opportunities to inform and communicate between the bank and the client through telephone and personal conversations, sending SMS messages, communications in the Sberbank-online form, as well as registered mail.
Recently, many citizens have used at least once credit loans. And when contacting a bank or any microfinance organization, everyone is faced with what they are offered General terms lending. Comparing everything possible options, borrowers choose those that are more profitable for them. However, many do not know that they can negotiate with credit institutions and ask for individual conditions, taking into account certain circumstances.
A few years ago, amendments were made to the legislation regarding credit relationships.
These amendments also included a division of the conditions provided into:
- are common;
- individual.
All credit organizations that provide loans to citizens are required to distinguish between them, regardless of what organizational form they have.
In addition, the main significant differences between these two types of concepts were introduced. The essence of these differences is as follows:
- General conditions are provided to everyone unilaterally, and individual conditions are offered only after a meeting with the borrower and discussion of all points of the agreement.
- General ones are intended for all types of borrowers, and individual ones are set only for a specific client.
- General terms are subject to the possibility of future changes, but the other party must be notified of this in the proper manner. They can only be changed for the better under a valid contract. Conditions can be changed for the worse when this is expressly provided for in the signed agreement. Those points that were agreed upon individually with the borrower can only be changed through the court, proving good reasons to change them.
Therefore, when registering loan agreement the borrower can always try to change the current conditions and replace them with individual ones.
General terms
When talking with a lender about what can be changed in a more favorable direction for the borrower, it is important to understand what conditions, according to the new legislative acts, relate to general, and which to individual items.
The general clauses of the contract include:
- Name credit organization and details for transferring monthly payments.
- The requirements that banking organization when applying for a loan.
- Types of payments according to which the debt repayment schedule will be calculated. There are two possible calculation options: differentiated or annuity.
- Responsibility, which is specified in the agreement and applies in the event of a violation by the borrower of the terms of the loan.
- Possibility of assigning rights to other persons (collectors) in case of non-compliance.
All these conditions can be changed before signing the agreement with the borrower or after signing, but only for the better for the borrower.
Individual conditions
All conditions that were provided directly after negotiations between the borrower and a representative of the credit institution are considered individual. These include the following clauses of the agreement:
- The currency in which the loan is issued.
- The amount that is transferred to the borrower by agreement of the parties.
- The interest rate depending on which the amount of the overpayment is calculated.
- The period during which the agreement will remain in force and the borrower will be required to make monthly payments.
- Price additional services which are provided by the bank. This may include a fee for maintaining the account, for providing services mobile bank and so on.
- Conversion procedure if payments will be made in a currency different from the one in which the loan was issued.
- Acceptable options for making payments through certain systems, as well as the deadlines for making them.
- The procedure for resolving and considering disputes arising in the course of these credit relations.
- Collateral obligations that the borrower provides as security for a cash loan.
- Mandatory insurance, voluntary agreement or refusal of additional types of insurance.
Other items may also be included as agreed upon by the parties. Here we can consider certain situations when the borrower will have the opportunity to receive a credit holiday or the possibility of partial or early repayment of undertaken obligations. Individual conditions always take precedence. Therefore, if the contract is drawn up in such a way that there is a contradiction, then the clauses drawn up on an individual basis will prevail.
Contract structure
In the same 2014, when amendments were made, changes were also made to the form of the loan agreement. It must be provided in tabular form. Its structure should be as follows:
- The first column contains the loan number.
- The second contains the name of the loan.
- And in the third column there is explanatory text.
The word “no” must be written if a positive agreement is not reached on a certain point. This word can also be replaced with a dash. But empty cells are not allowed.
In the upper corner, in a separate frame on the right, there is the loan amount and the real rate at which it is provided.
It is prohibited to make statements in the form of separate asterisks from the loan agreement, as well as to write the text in small print. Everything should be contained in the main table and written in the same, easy-to-read font.
Nuances
These amendments also affected the possibility of changing individual and general conditions. The loan agreement cannot be changed until the borrower has received cash, even if the contract has already been signed. If the funds do not arrive to the specified account, then changes to the terms of the agreement are not allowed.
The borrower also has the right to return the funds within the first month, paying only interest for this period. Additional fees are not allowed. The transaction begins to take effect from the moment the contract was signed by the parties and the money was also transferred to the account.
Individual terms and conditions cannot be changed, but additional clauses may be added to them. Banks often set individual conditions based on the following parameters:
- The borrower's credit history, which expresses his complete reliability. If a citizen has never had late payments and often used loans, then he is considered reliable.
- High and stable wages. This parameter is not always long-term, but it indicates that the borrower has a certain income, which will be sufficient to repay the debt on time. In this case, income must be confirmed by official documents. It is advisable that this salary was white and was subject to taxes.
- Availability collateral property, which a person can additionally pledge to ensure the reliability of his obligation. Moreover, if this property is considered highly liquid, the bank can significantly change the terms of the loan for the better for the borrower.
- The presence of co-borrowers and guarantors who are involved to ensure the reliability of the fulfillment of the undertaken obligation. They must also have a high income, confirmed by official documents. Typically, such papers include a 2-NDFL certificate or a tax return.
Basically all banks do not offer maximum conditions on a loan. But any borrower can try to negotiate the most favorable terms for him by offering the bank additional guarantees of repayment borrowed money on time.
All agreements must be recorded in the agreement. Before signing, you must make sure that bank employees have indicated everything correctly. In the future, it will be difficult to prove that there was a different oral agreement if the funds have already been transferred under the signed agreement.
In 2014, amendments were adopted to the legislation regulating the issuance and repayment of loans. In accordance with them, the concept of general and individual terms of a consumer loan agreement was introduced. At the same time, not only banks, but also micro financial institutions, credit cooperatives, private loans, etc.
What is the difference between general and individual conditions?
Their key differences are as follows:
- general ones are provided by the creditor unilaterally, individual ones are achieved through negotiations;
- general ones are intended for repeated use (that is, for all borrowers), individual ones - only in one specific case;
- general ones can be changed by the creditor unilaterally with prior notice to the second party (but the existing ones should not be impaired), individual ones can only be changed through the court.
General conditions include:
- name of the creditor and his details;
- requirements for a potential borrower when filling out an application. The main ones are listed in this article;
- loan repayment options. Annuity or differentiated payments. We consider the difference between these two schemes at this link;
- liability for non-repayment of the loan;
- the impossibility (or possibility) of assigning rights to claim loan debts to third parties (in other words: it is possible or not to transfer the debt to collectors).
What is included in individual conditions
These include those provisions of the contract that the parties came to through negotiations:
- loan size;
- loan currency;
- annual rate. Best interest from banks this year you will find in this review;
- duration of the contract;
- for a foreign currency loan - the conversion procedure;
- payment options (indicating specific current accounts for transferring money);
- insurance information;
- description of the collateral (if it is paid) and the situation of its withdrawal. You will get more information about loans issued against collateral from this article;
- cost and payment procedure for additional services (for example, for maintaining an account);
- procedure for resolving disputes.
Of course, other provisions may be included in the contract if the parties have agreed on them. For example, the procedure for providing credit holidays in case of financial difficulties of the client or some methods of early repayment of the loan.
The priority of individual conditions is higher. Therefore, if they conflict, you should act as described in them.
Contract structure
Since 2014, banks and other credit organizations must present the conditions for granting loans in tabular form:
- the first column indicates the serial number;
- in the second - the name;
- in the third - content (explanatory text).
If the condition is not accepted, for example, regarding the assignment of rights, then a dash or the word “no” is placed in the third column. Skipping lines and empty columns are not allowed.
Concerning total amount loan and the real lending rate, then they should be framed and placed in the upper right corner of the agreement.
The use of small font and “asterisks” with additional parameters is not allowed. All provisions must be recorded uniformly. The most profitable terms on consumer loans are presented in this
Since July 1, 2014, relations in the field consumer lending will change significantly due to the fact that it was published the federal law dated December 21, 2013 N 353-FZ “On consumer credit (loan)” (hereinafter referred to as the Law). The law contains rules according to which credit and non-credit financial organizations will provide credits and loans to citizens for purposes not related to entrepreneurial activity. The Law defines the calculation procedure full cost credit, limited maximum dimensions penalties, detailed requirements for the content and execution of consumer credit (loan) agreements have been established. The provisions of the document will apply to banks, microfinance credit organizations, credit cooperatives, and other companies carrying out professional activity for the provision of consumer loans, as well as for persons who have received the right of claim against the borrower (hereinafter referred to collectively as creditors).
Maximum cost consumer loans will actually be determined by the Bank of Russia
From July 1, 2014, lenders will no longer be able to arbitrarily set the full cost of consumer loans. The law contains a formula for calculating their cost, and also determines which payments can be included in this cost and which cannot. For example, the amount of the insurance premium under the contract voluntary insurance may be included in the cost of the loan only if the borrower, as a result of concluding such an agreement, receives more favorable lending conditions.
The total cost of each specific consumer loan (loan) at the time of conclusion of the agreement should not exceed by more than one third the average market value approved by the Bank of Russia for the current quarter in relation to the corresponding category credit product.
The Law provides for the procedure for determining the average market value of a consumer loan (loan). At the same time, resolving some issues related to this process is possible only after the Bank of Russia adopts the necessary by-laws.
In particular, the determination of categories of consumer loans is left to the discretion of the Bank of Russia. The law contains only indicators that the Bank of Russia will have to take into account: the amount of the loan, its term, type of lender, purpose, etc. But it does not indicate whether different categories of credits (loans) are required to differ in all of these indicators.
For example, the Bank of Russia can determine what is key for allocating a loan in separate category will be its size and return period. Thus, banks and microfinance organizations will be forced to issue loans in this category within the framework of uniform rates, although currently the interest rates of these organizations can vary several dozen times.
The Law establishes that for each category of consumer loan, the Bank of Russia is obliged to evaluate credits (loans) that are issued by at least one hundred largest creditors or at least one third of the total number of creditors providing credits (loans) of the corresponding category.
All terms and conditions of consumer credit (loan) agreements will be divided into general and individual
The law will divide all conditions of consumer loans into general and individual. The differences between them are that the general conditions are established unilaterally by the lender for the purpose of repeated application. Individual terms, on the contrary, are specified in each agreement separately and apply only in the relationship between the lender and a specific borrower.
The individual terms of a credit agreement (loan agreement) according to the Law, in particular, include the size of the credit (loan), its repayment period, interest rate, etc. The Law requires that the individual terms of the agreement be recorded in the form of a table, which will be placed in the agreement immediately after information about the full cost of the loan.
The Law does not stipulate general lending conditions, but an approximate list of them can be established from the text of the document. Thus, lenders will be required to publish information about the provision, use and repayment of credits (loans) in places where services are provided. It is indicated that the general and individual terms of the contract should not contradict information published for public access.
The procedure for changing the general terms of a contract differs significantly from the procedure for changing its individual terms. The creditor has the right to change the general terms of the agreement unilaterally, unless this entails the emergence of new ones or an increase in the size of existing ones monetary obligations borrower.
The debtor also has the right to unilaterally change the general conditions, but he can only carry out this procedure in judicial procedure. The Law stipulates that the provisions of Art. 428 of the Civil Code of the Russian Federation on accession agreements. Thus, the borrower has the right to go to court to change such conditions if they are clearly burdensome for the borrower (for example, they reduce the liability of the lender).
There is no such clause regarding individual conditions, so they can be changed in general procedure, provided for in Ch. 29 of the Civil Code of the Russian Federation (including by agreement of the parties, by a court decision in the event of a significant violation of the contract by the other party, etc.).
Thus, when the new rules come into force, it will be more difficult for borrowers to change the individual terms of consumer credit (loan) agreements, since currently the courts recognize such agreements as agreements of adhesion (see, for example, paragraph 6 Information letter Presidium of the Supreme Arbitration Court of the Russian Federation dated September 13, 2011 No. 146, Appeal ruling of the Supreme Court of the Republic of Tatarstan dated October 28, 2013 in case No. 33-12917/13).
The creditor will be able to assign to any person the right of claim under a consumer credit (loan) agreement, unless the law or agreement contains a prohibition on such assignment
The law contains general rule, according to which the creditor will be able to assign to any person his right of claim against the debtor. However, a prohibition on such assignment may be provided for by law or contract. For the transfer of rights of claim, neither the status of the creditor nor the status of the person in whose favor the right is assigned matters. Thus, in relation to banks, the Law eliminates the contradiction between practice arbitration courts and courts of general jurisdiction.
Arbitration courts take a similar position: the bank has the right, without the consent of the borrower, to assign the right of claim under a consumer loan agreement to any person, even if he does not have the status of a credit organization (clause 16 of the Information Letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated September 13, 2011 N 146).
Courts of general jurisdiction defend a different point of view: the bank is prohibited from assigning the right of claim to persons who do not have licenses to carry out banking, if in law or in loan agreement there is no direct indication of the possibility of such a concession (clause 51 of the Resolution of the Plenum Supreme Court RF dated June 28, 2012 N 17).
Credit– transfer for temporary use of any valuables (in any form) from one owner to another on the terms of return, urgency and payment. Modern relations in the field of lending are expressed in different forms and types of such financial product. Depending on this, the rules for its provision differ.
Principles of lending. General conditions for granting a loan
The terms of any loan are based on its principles:
- repayment;
- urgency;
- payment.
Repayment refers to the need for mandatory reversion of the material value received by the borrower to the lender. Urgency is a natural form of securing a return. It assumes that the funds received as a loan are not simply subject to return, but must be repaid within a strictly defined period.
The last condition of the loan is the payment of the loan. This principle determines the obligatory remuneration of the creditor for the use of his material value. It is expressed in the form of either a one-time payment or payment in installments over the entire term of the agreement.
Relations between lending entities are documented in the form of a concluded loan agreement. Integral parts of this document are its general and individual conditions .
The general terms of the loan agreement are established by the lender independently, unilaterally. They are developed in accordance with the requirements of current legislation. The rules of the accession agreement apply to them (Article 428 of the Civil Code of the Russian Federation). That is, it is considered that the borrower’s consent to such conditions is confirmed by the conclusion of the main lending agreement. In this case, a signature from the borrower is not required.
The general conditions developed by various financial and credit organizations/banks do not differ significantly from each other. As a rule, they include the following main positions (sections):
The general parameters that determine the conditions for the provision of a loan product are those established by the lender:
- product focus;
- consumer requirements;
- minimum/ maximum amount and loan currency;
- loan term;
- form of providing credit funds (cash/non-cash);
- interest for use;
- ensuring the fulfillment of consumer obligations (insurance, surety, pledge).
The General Terms and Conditions may include additional annexes. They relate to a specific type of loan product or program implemented by an institution - a lender.
Amendments and additions to the current document are also accepted by the creditor independently (without the consent of the other party). Such decisions are brought to the attention of borrowers through their public placement.
The developed and approved general conditions must be available at the office of the organization providing lending. In addition, if the lender has its own Internet resource, this document must be published on the company’s website. If the consumer wishes, the document can be provided to him at on paper.
Having accepted positive decision about lending, the lender provides the consumer with a document with the individual parameters of the product for review. Unlike the general conditions, this document contains positions established by a written agreement between the consumer (borrower) and the creditor institution.
The consumer expresses his consent to receive a loan under such conditions by signing it. From this moment on, the main loan agreement is considered concluded.
Individual conditions, as a document, are already specifically established and prescribed:
- shape and type of product;
- amount of loan funds (limit, currency);
- duration of the agreement (loan repayment);
- interest for use;
- repayment procedure (size, frequency, terms, methods, etc.);
- amount of penalty/penalty/fine;
- additional paid services of the lender (list, price, procedure for provision);
- methods of information exchange between the parties;
- other mandatory conditions that are determined depending on the type of specific loan product.
Main types and forms of credit. Conditions for providing a consumer loan
| CONDITIONS/ PRODUCT |
"EDUCATIONAL" | "WITH GOVERNMENT SUPPORT" |
| Requirements for the consumer |
|
|
| Amount, currency and form |
|
|
| Term | no more than 11 years | the period of study increased by 10 years allotted for repayment |
| Interest rate | 12% | 7,06% *
(at the refinancing rate of the Central Bank of the Russian Federation of 8.25%) * when the refinancing rate changes, it is calculated based on ¼ of the refinancing rate + five points |
| Security |
|
not required |
| Special conditions |
|
To consumers under 18 years of age, the product is provided only with:
The product is not provided to persons under guardianship (Article 19 of the Federal Law “On Guardianship and Trusteeship”) |
Specific terms of provision are established for each consumer individually, depending on his needs and solvency indicators.
Also, as an example, you can consider the conditions for the provision of products offered by such institutions as RossinterBank, Rosselkhozbank, Ruskobank.
Mortgage loan: terms of provision
Mortgage loan – provision of borrowed funds to the consumer against collateral (mortgage) real estate. As a rule, it is issued in significant amounts and for a long period.
This type of lending can be used financial institutions both for the borrower’s acquisition of the property itself (which subsequently serves as collateral), and for other types of credit products (as collateral).
In most cases, the purpose of mortgage lending to consumers is the acquisition of residential property (under construction, on the primary or secondary market).
Main parameters of mortgage conditions:
- currency, amount and loan term;
- the amount of the down payment;
- type and size of interest rate (fixed/variable);
- additional commissions and payments;
- property/consumer insurance (mandatory or voluntary);
- requirements for the consumer and necessary documents;
- size and type of payments (differentiated/annuity), etc.
Compare basic conditions the provision of mortgage loans can be based on the example of products offered by the country's leading institutions. The table shows current offers* in three main areas of mortgage lending.
| CONDITIONS/ INSTITUTION |
 |
 |
 |
| Product Purpose | acquisition of residential property (primary market) |
acquisition of residential property (secondary market) |
|
| Requirements for the consumer |
|
|
|
| Currency | Russian rubles | Russian rubles | Russian rubles |
| Interest rates | 15,00%-15,50% | 15,95% (when applying comprehensive insurance) |
17,50%-19,50% |
| Sum | from 45 thousand rubles up to 15 million rubles |
from 1.5 million rubles up to 15 million rubles |
from 300 thousand rubles up to 30 million rub. |
| Term | up to 30 years old | up to 30 years old | up to 15 years |
| Submission form | one-time/partial | one-time, on account |
|
| Down payment/collateral discount | from 20% of the cost of the purchased property | min. deposit discount 30% |
|
| Security |
|
|
|
| Insurance | compulsory insurance of the risks of loss/damage to the collateral for the entire period (except for the land plot) | compulsory insurance of risks of loss/damage to collateral for the entire period | compulsory risk insurance:
|
| Payment order | monthly annuity payments | annuity/differentiated payments | |
| Consumer responsibility | penalty 20% per annum | penalty 0.1% per day | penalty 0.05% per day |
| Consideration of an application for funds | 2-5 days |
14 days |
1-10 days |
* as of end of May 2015.
Mortgage group loans can be provided by institutions in their branches (branches) in the following places:
- registration of the consumer (or one of the co-borrowers);
- actual location of the collateral;
- accreditation of the consumer's employer (or co-borrower).
A commercial loan is a non-bank loan provided on the condition of an advance payment, prepayment, installment plan or deferred payment for goods (services/work). This form is widely used in relationships both between business entities (legal entities, individual entrepreneurs) and individuals.
At its core, it is an agreed upon condition for mutual settlements between the parties to economic and legal relations. From this we can conclude that its application is feasible only within the framework of the execution of the main agreement (sale and purchase agreement, services, supply, work, etc.).
At the legislative level, there is no specification regarding the conditions for its provision. The rules and regulations applicable to loans and credit are applicable to them. The parties to the relationship may independently agree and set conditions regarding:
- Forms (advance payment, prepayment, deferment, installment plan).
- Amounts and terms.
- Amount of fee (percentage), etc.
As a rule, in practice, the terms of commercial lending are specified in the main agreement. However, they can be formulated and executed in a separate document (additional agreement). In this case, the same form requirements apply to it as to the main document.
Accordingly, if the main agreement is subject to requirements for its written form or state registration, then similar requirements should be applied to the lending agreement.
This form of lending allows consumers to borrow specific items. The object can only be material products (raw materials, materials, other goods) provided for paid immediate use to the consumer.
Upon expiration of the period established by the agreement, such things (of identical quality and type) are subject to return to the creditor with payment of interest for their use.
Relationships between business entities are based on written agreements - contracts commodity credit. The document establishes and defines the conditions for its provision. The significant ones are:
- Specification of the item transferred on credit (quantity, assortment, completeness, quality, etc.).
- Amount (rate) and procedure for payment for use.
- Conditions for the return of an item or compensation, expressed in monetary form, for its use.
Setting a return period is not a mandatory or essential condition. According to the norms of current legislation, in the event of its absence, the loan is subject to repayment within a month after the lender’s claim is presented to the borrower.
Unless otherwise provided in the agreement itself, relations arising in connection with the use of trade credit are compensated. The amount of interest (fee) for using the goods and the procedure for making payments are determined independently by the parties to the agreement. If this condition is not specified, then the interest rate is determined as equal to the refinancing rate of the Central Bank of the Russian Federation.
Budget loan is a targeted reimbursable loan from the budget. It is one of the forms of financing his expenses. Borrowers can be both state and municipal organizations, and legal entities(not related to the specified categories). The main requirement for recipients is the absence of debts on mandatory payments before the corresponding budget.
Current legislation provides for the possibility of obtaining an interest-free loan for municipal and state enterprises. A loan can be provided to other organizations only on the terms of payment of interest for its use. Their rate is determined in the relevant agreement, and in an amount of at least 1/10 of the Central Bank refinancing rate (valid during the term of the loan).
A company can receive a loan if the following conditions are met:
- the legal entity is not in the process of its reorganization, liquidation or bankruptcy;
- the company is properly registered and operates on the territory of the municipality (whose budget provides lending);
- there are no debts on previously received budget money, mandatory payments at all levels and extra-budgetary state funds.
In addition, a mandatory condition for granting a loan to a legal entity is confirmation of its financial stability. For this purpose, the financial control body conducts a preliminary financial audit of the organization’s condition.
Loans are issued to private companies only if they provide liquid collateral. Its methods can be:
- Bank guarantee.
- Guarantee.
- Property collateral (including in the form of securities, shares, shares, etc.), covering 100% of the loan provided.
- When choosing a loan product and its program, be sure to study the general lending conditions approved by the financial institution.
- Please be aware that the banking institution is obliged to provide full consultation to the borrower on the terms of the loan. If the consumer wishes, the lender must also provide all documentation (general and individual conditions) for a specific product for review free of charge.
- Before signing a loan agreement, carefully study all its terms. If some items are not clear, you should ask an employee of the creditor bank to clarify them.
- The lender is obliged to provide the consumer with a loan agreement (individual conditions) for review. Please be aware that the period for familiarizing yourself with its terms cannot be less than 5 days.