What criteria banks assess borrowers
Today, banks evaluate borrowers in complex, takes into account three main factors:
- the customer's credit history - no overdue loans;
- the presence of a permanent source of income and its size, mortgage payments should not exceed 40-70% of the total income;
- the existence of a criminal record.
According to statistics, in Russia there are about 3-4 million citizens with a criminal record, the vast majority of whom were punished for minor crimes.
Thus, a criminal record can become a significant barrier to obtaining credit. Especially if the borrower has a steady high income, a criminal record does not affect the Bank's decision. The majority of failures derived ex-convicts are not directly related to their criminal record, and are defined by low income levels of citizens.
Criminal records must indicate in the application for a loan, since in any case there are problems with the law, the Bank determines, using the special databases. And providing inaccurate information is guaranteed to entail the denial of the loan.
As a rule, the existence of a criminal record is not a clear reason for refusal. This takes into consideration the article on which the person was convicted. In particular, the categorical refusal will be given to the borrower, previously convicted for economic crimes or for fraud, as well as one that has a conviction. Under Russian law, all legal consequences of a criminal record shall be terminated upon its maturity.
The law provides several ways for the termination of a criminal record – the repayment or withdrawal. The criminal record is quashed for probation - after probation, for the other - in the period from the year.
In the order granting the loan the savings Bank does not include such grounds for refusal as a criminal record. However, to obtain here a loan to such borrower will be difficult. Under other equal conditions, most banks prefer to deal with persons without a criminal record.
How to get a loan with a criminal record
If banks refuse, then you can seek the assistance of the mortgage broker, who will help in obtaining a loan. But for the services of a broker will have to pay extra - they cost about 3% of the loan amount.
Another option is to borrow a small microfinance institutions or small regional banks. You can also contact banks that loyally tuned to troubled borrowers - for example, "home Credit" or "Renaissance credit". Most often the interest rate on loans in these banks will be higher than the market average.
However, in any case, at the time of the loan a criminal record must be repaid.