Cash Loan – Cheating Or Objective Reality Of

Virtually every one of us knows what a loan is. Too many people have ever used them or used at present. Not fewer people are going to get it in the future. You can hear a variety of assessments relating to system of cash credit in our country. Someone said about the huge percentage and extremely unprofitable loans, others complain about banks allegedly deceiving customers’ latent interest, others just happy opportunity to live on credit. As they say, many people – so many opinions. Credit relationship – it’s pretty difficult area of economic life, so it becomes really important to have some kind of objective knowledge, to be able to objectively evaluate it.

Let’s look at probably the main issue, which is given a very large number of our countrymen – the question of cost of credit. Of course, comparing the percentages rates in the economies of developed countries, with Russia’s realities, there is the idea of “obdiralovke. But let us not flee in the wake of emotions. After all, we need an objective assessment of what is happening. At the competitive market (a market of banking credit – this is a very competitive market), the price of something (in this case – the interest rate) is determined by objective economic factors. Bank to lend you money, you need somewhere to take them. A takes he had them, either by attracting deposits, or take them himself. Thus, the value of money in a country strongly influenced by the interest rate on the loan. A value of money determined by the level of inflation. Above the inflation rate – more.