A consumer loan is an amount of money that a person can borrow or borrow at interest for a certain period from a credit institution (Bank, microfinance institution, credit cooperative, etc.) to http://usapaydayloans.info/maryland/salisbury-md/ purchase any goods or services, to repay other loans, treatment, education and other financial needs.
Consumer credit is called because it is issued for consumption purposes. That involves the use of goods or services purchased on credit to meet personal needs. Consumer credit can be obtained for vacation or repair. And it is impossible to obtain for the purpose of businesses, for example, for the opening of the business.
Consumer loans are regulated by the law «On consumer credit (loan)».
In what situations is it used?
The consumer credit practically does not limit the person in opportunities. It is used if:
There were temporary financial difficulties. At the same time, there is confidence in the early improvement of the situation. Perhaps a person receives piecework and his work is subject to seasonal fluctuations. Or works in shifts.
You need to buy something: a phone, household appliances. And maybe a car or even an apartment.
You need to pay for treatment.
It is necessary to make repairs.
I want to go on vacation.
We need money for training.
A friend or relative asks to take money from the Bank for him. Agreeing to this option, you should honestly answer yourself three questions: “am I Ready to pay a friend’s loan if he does not pay? What part of the income will I have to give? How will this affect my lifestyle?”.