We identify the features of consumer loans
In the previous days, we talked about how the idea of Bizo and Hypo came about, about the advantages offered by Ameriabank's loan refinancing offer to entrepreneurs operating in the small and medium business sector. Today, Avetik Avetisyan, manager of the "Youth" branch of "Ameriabank" CJSC, will tell how we pay too much where it is possible to save money, and what should be done by those whose only concern today is not to confuse the days of loan repayments.
Mr. Avetisyan, many have existing consumer loans that they took before. Since then, everything has changed, both our incomes and the terms of granting new loans have changed. Isn't it time to think about loan refinancing?
Consumer loans, perhaps, take the first place in terms of demand. The peculiarity of consumer loans lies in their variety. Maybe it is because of this diversity that people take different loans from different banks and spend a lot of money for their service.
And get tangled up in loans...
The phrase "credit crunched" seems to be about consumer credit. Because here there is one more feature. we often take out consumer loans on a rush basis. When it comes to a small amount, the borrower asks only one question: how much should I pay per month, and if the presented amount satisfies him, he takes the loan without paying attention to the interest rate, term, commissions, etc. Moreover, since the amount of the consumer loan, as a rule, is not large, any additional costs significantly increase the actual interest rate. For example, the declared 18% per month along with the loan service fee can actually become 20-25%. A few such "small" loans are enough for the monthly repayments to significantly affect the family budget. Then maybe the client realizes that he did something wrong, but it's already too late, and some don't even think about it, unless the amount of payments becomes critical. But if you can allocate only 5% of your income to repay the loan, why pay 10%, especially since today every dram saved is important?
Will refinancing the loan make it possible to correct this mistake?
Yes, what we are offering our potential customers today is very beneficial from all angles. I will say once again what my colleagues have said. In case of refinancing the loan at Ameriabank, the Bank pays all the costs of collateral evaluation (if any), notary certification and cadastral fees. The customer is also exempt from loan origination and service fees. Our interest rates are very competitive: 14% in USD, 17% in AMD and 12% in EUR. The loan can be granted for up to 7 years. Our offer covers consumer loans secured by real estate or car, non-revolving credit lines and overdrafts.
Our offer allows people with several loans in different banks, with different interest rates and terms, to save their money, time and nerves. At the same time, I consider it necessary to mention that we refinance only those loans that have at least one year of proper service history.
By extending the term of the loan, we reduce the borrower's monthly repayments. If the client took out the loan at a higher interest rate, the amount of repayments also decreases due to the reduction of the interest rate. So, instead of repaying loans at five different banks, the borrower makes one monthly repayment at one bank, which is much more convenient, you must agree. As a result of loan refinancing, free funds are created, and they can be spent on other purposes that were previously unavailable due to lack of sufficient funds.
Thank you for the clarification, Mr. Avetisyan.
Tomorrow we will present the last part of our conversation about refinancing loans, which is about mortgages. You'll learn why it's worth going through the mortgage application process again. Follow us!
Source: tert.am