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Sunday, February 18, 2018

How much is the loan for vacation

Loans for vacation — an endangered species. Target products of this kind left in the lines of a few banks and credit demanded only a “drug addicts”. Experts advise to pay attention to other ways to borrow money for the journey, more economical and available.

According to the head of sector analysts credit products Banks.<url>” Elena Sudarikova, purpose loans for vacation now give out no more than ten banks. And even among these players, the share of such loans is small: thus, according to the head of the Department of consumer credit the Credit Europe Bank Evgeny Emelyanov, the share of loans on vacation is about 10% of the total issuance volume of POS-loans.

Recreation credit is really kind of a POS, or inventory loan. These loans are distributed not in the Bank offices and points of sales — in this case, in travel agencies and on industry sites-aggregates. According to estimates of Sudarikova, the average rate on this loan is high at 35% per annum, and therefore may not be attractive to a competent and careful borrower. For comparison, General-purpose consumer loan “is” now about 17-22% per annum.

According to the Manager of the St. Petersburg branch of Rosgosstrakh Bank Elena Verevochkin, spending on a vacation in the volume of credit money is not more than 15% is not the most popular item of expenses of holders of credit cards and consumer loans. Vice-President of Bank “Opening” Olga Ovchinnikova, notes that the interest in loans for vacation decreased due to the reduction in sales of vacation packages and demand for travel in General and also in connection with recent exchange rate changes which negatively affected the purchasing power of the population.

Vice-President of SMP Bank Roman Tsivinyuk draws attention to another aspect: the banks themselves have revised approaches in collaboration with tourism: “the tourism sector has significantly increased the risks left the market even very large operators. While many travellers have had to endure a number of difficulties due to disrupt flights, unpaid tour operator hotels. Although the Bank is not involved in the planning and interaction of tour operators with hotels, air carriers, but still carries significant reputational risks”.

It would seem that once the banks had not much to offer borrowers, the last direct road to microfinance institutions (MFIs). But here, as it turns out, travelers aren’t crammed. According to the Director of service online lending MoneyMan Boris Batin, 2015 for travel have borrowed not more than 4% of the total number of loans. The CEO of online service loans “Robot Timer” Sergei Sedov said that on average MFIs for leave taken amounts of the order of 10-12 thousand rubles, and the return of the debt, usually carried out in a month. Deputy Director, business development at MFI “Migkredit” Dinara Yunusova says that the proportion of customers who have applied for loans on tours, is not more than 10-15% of cases, although the interest of consumers is increasing.

According to Elena Sudarikova, the Russians used to defer to rest, not to borrow, though, he said, defined the target audience for such products is: “are people willing to buy on credit almost everything from expensive phone that they can not afford, finishing coat and round”.

In some cases, the practical meaning has the purchase debt short-term individual travel elements, such as of tickets. For example, in one of the specialized portals have the ability to buy on credit tickets. If you repay the loan before departure, the overpayment will be 10%, and then 15%. Grace period with a zero rate of the loan is seven days. Given the fact that fares closer to the date of departure are becoming more expensive by about 20%, this option can be beneficial.

But overall experts do not recommend buying the rest in debt, the cost of the trip due to interest payments could double. A compromise solution — a credit card with a grace period allowing the Bank within the prescribed period to return the spent funds without paying interest.

Roman tsivinyuk notes that for tourist purposes now banks are offering not just loan products and affiliate programs, allowing you to save money. So, first, the client uses the card, paying it for the goods and services, for that he credited the bonus miles. Then the holder can exchange them for tickets or pay at the hotel. But it is obvious that in such a fast way to raise money for journey will not work, so this option is likely can be seen as a nice addition to the principal amount.

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