In case with mortgage and car crediting, the use of credit brokers is obvious – a large amount of loan and quite big credit period compensate the agent costs. But it is still unclear whether it is profitable to appeal a broker when executing a consumer loan.
Fast private owner
First, the reporter decided to test the possibilities of credit brokers who are advertising their services by means of adverts in the underground and on the posts. Having called to the number given on the advert which was promising to help get the necessary sum quickly and inexpensively, the reporter got to the private owner named Alexander.
The broker received the task to get 5 thousand uah for the period of 1 year at the lowest interest rate. After finding out what documents the client had Alexander offered an interest-free loan but with a monthly commission of 1.75% of the loan amount and an initial investment of 100 uah (the efficient rate was 42.4% annually). To the remark that it is not a cheap loan the trustworthy answer came, ‘It’s one of the most profitable offers. You get a loan in cash, and these are the most expensive credits’, Alexander explained.
One more advantage for a borrower was the speed of arranging the deal – the money was promised to be delivered within a few days. However, the broker demanded for his services 300 uah, including which the interest rate increased to 53.4%. To the question what to pay such money for the agent answered, ‘You pay for the optimal conditions and quickness of getting the loan’. Though as we can tell from the calculations the loan terms including broker’s commission turn out to be far not the best.
Churning out the income reports
After unsuccessful attempt of communicating on the phone it was decided to talk to the brokers personally. The first who the reporter paid a visit to was a broker at ‘TimExpert’. For a commission of 250 uah the girl-consultant agreed to help arrange a consumer loan. According to the official customer’s income there was defined a loan rate – it made up around 40% annually in hryvnyas, plus the initial installment of 200 uah (the efficient rate was 56.6% annually).
To the request of possibility of decreasing the amount of loan the girl answered affirmatively, ‘We can make a better income report for you than you already have – it will take away some interest per annum. But such a service will cost you ate least 400 uah’. The interesting thing is that at short terms and amounts of loan, like in our case, such a ‘service’ of the broker will not actually make the real cost of loan cheaper, but it will in fact make it more expensive.
Internet help
The next credit agent – ‘Formula Credit’ company – was even more original. According to the words of that company’s consultant, at the presence of the income report the loan rate will be 30% annually, and one-time bank commission will be 100 uah. Broker’s services will cost a borrower 500 uah (the efficient rate of 52.2% annually).
To the question which banks the company cooperated with the specialist answered they had been working with more than twenty financial institutions. But during the conversation the reporter noticed an opened window of ‘Prostobank Consulting’ company on computer screen. By the way, at the working place already, having looked through the terms of consumer crediting at ‘Prostobank Consulting’, the reporter found out that they coincide with those offered by the broker. Probably, it was just coincidence but for 500 uah commission it’s better to look for a bank on the web yourself.
The only variant, and the optimal too
The last agent who helped the reporter ‘borrow money’ was the credit broker ‘Capital Expert’. Having heard that the customer wanted to execute a consumer loan the guy at once gave out the rate of 26% annually. And in contrast to the first two brokers, the consultant didn’t even inquire whether the potential borrower had an income report. After listening to the end the terms of crediting according to which one would have to pay 350 uah commission, the reporter wondered why only one variant of credit had been offered, and the consultant answered, ‘Believe me, it’s the most profitable variant’.
To tell you the truth, I have to note that the variant was really not bad, especially if to take into account what had been offered by other brokers – the efficient credit rate was 42.6% annually. Nevertheless, the terms are not the best at the market.
