What is the difference between an installment plan and a loan for a product. The difference between an installment plan and a loan

Offers for loans and installments are full of street banners and billboards of financial institutions. The attractiveness of these services is that, having received money in debt, the client can afford large purchases that he will not buy for one salary. When arranging a loan, the borrower often does not see the difference between an installment plan and a bank loan. Which of them is more profitable, and how they differ from each other - read the article.

The concept of a loan implies the issuance of funds at a certain percentage. In this case, it is mandatory to draw up a loan agreement. It indicates the term and amount of the loan, interest rate, additional conditions. You can get a loan at a bank branch, sales offices of a financial organization or in partner stores of the institution. The paperwork is carried out only by the lender's employee.

Overpayment is the main thing that distinguishes a loan from an installment plan. Its value depends on the conditions offered by this or that bank. The amount of the overpayment can be seen in, which is handed out at the time of signing the loan agreement. When applying for any type of loan, the bank notifies the client of its full value.

In case of a delay in the monthly payment, the borrower faces penalties and. With long periods of non-payment, the amount of penalties sometimes reaches the size of the loan itself.

An installment plan is an interest-free loan. It is provided by shops, car dealerships and companies that provide various services to the population. The price of a product or service is distributed in equal parts for the entire installment period. Although buyers like this option for its simplicity of design and convenience, it is not always financially more profitable than a bank loan. Sellers, offering installments, sometimes inflate prices for this product. In addition, the conditions for the acquisition of only goods of a particular brand or type are established.

An installment plan in a store is a transaction only between the buyer and the seller of the goods. There are no additional commissions for this purchase method. In most cases, the buyer is required to make a down payment. Refunds are made to the cashier of the store. If the buyer stops paying by installments, the store has the right to withdraw the goods from him.

If, when buying at a retail outlet, it serves as the main document, then this is no longer an installment plan, but a bank loan. And this is even despite the fact that the loan is issued at 0%. Perhaps, in this case, the seller himself covers the interest to the bank. Although the borrower does not overpay for the purchase, he becomes a party to the relationship with the financial institution. The next entry on the loan received is entered into it.

Advantages of the installment plan:

• No overpayment for the goods.
• Registration speed.
• Minimum of documents: most often only a passport.
• Flexible debt repayment scheme.
• Inability to fall into credit bondage.

Cons of the installment plan:

• Short time. For large purchases, the monthly payment is large.
• It is not always possible to purchase exactly the product that you need.
• Introduction.
• The buyer becomes the owner of the goods only when the purchase price is paid in full.

Benefits of a loan

• Loan terms from 1 month to 10 years or more.
• Having received a loan, a person has the right to purchase the product he likes from any seller.
• Possibility to get an express loan in a few minutes.

Loan cons:

• Interest overpayment.
• In some cases, a deposit is required.
• Large penalties for late payment.

Many Russians today use the services of “goods on credit or by installments”. At the same time, few people understand the difference in these two, at first glance, no different concepts. After all, each of them obliges law-abiding citizens to return "borrowed" money. And unaware of their status as a credit borrower, they continue to regularly make mandatory payments, pay interest on the loan taken and contact the bank. The reason for this paradoxical situation lies in the tempting offer of sellers to buy goods without overpayment or with zero interest on the loan, calling this payment method the word "installment plan". At the same time, there is a difference between the concept of "installment plan" and "credit", and today we will try to talk about this in more detail.

So what is the difference between a regular loan and an installment plan? The main difference between these financial transactions is that third parties are not involved in the payment of installments! The borrower should immediately pay attention to this point. That is, when the contract for the purchase of goods is drawn up only between the seller and the buyer, the latter can be sure that we are talking about an installment plan. In the case when the buyer is offered to arrange an installment plan through the bank, then we are talking about a loan.

The next item, which indicates the registration of a loan, is information about the loan in the credit history. In the event that you draw up an installment agreement, only the seller and the buyer know about this financial transaction. Information about a loan is sent to the Bureau of Credit Histories only if it is a loan. This indicates that in case of parallel registration of a loan in another bank, it is possible that you will be refused if the bank recognizes you as insolvent on two loans.

When registering an installment plan, you do not oblige yourself to pay off additional commissions, while in the event of untimely repayment of the debt, the seller retains the right to establish penalties, flesh until the withdrawal of the purchased goods. At the same time, the payment on the loan provides for the payment of the body of the debt, as well as the corresponding interest for using the loan.

This begs one question - why do sellers manage to issue a loan under the guise of an installment plan? The answer is ambiguous, but two main options need to be emphasized. First: an agreement has been concluded between the seller and the bank, on the basis of which the seller has the opportunity to provide the buyer with a discount on the goods in the amount of interest on the loan. In this case, the seller receives monetary compensation from the bank in order to attract a new client. But, in this situation, a loan for the buyer is considered profitable and is in no way inferior to an installment plan. It should be noted that in today's situation banks are no longer chasing customers, so such an offer from a buyer can only be encountered in isolated cases. Therefore, before concluding a contract for the purchase of a particular type of product, the buyer must carefully read the documents and make the right decision.

Based on this, it is possible to draw some specific conclusions that should alert the buyer during the installation of an installment plan:
offering to arrange an installment plan through a bank, that is, with the involvement of a third party;
the seller's proposal in the design of a credit card, which allegedly will simplify the debt repayment procedure;
the installment plan is issued for a period of more than 1 year;
collection of additional fees for registration of an installment plan.

Summing up, it must be said that although the installment plan and the loan are intended so that the buyer has the opportunity to purchase the goods he needs, they are still significantly different. The store itself offers the buyer an installment plan, requiring only a down payment. In this case, the rest of the amount will be distributed over a certain period. When applying for a loan, a bank representative must be involved in the process of completing the contract. In addition, an installment plan does not imply interest payments, while a loan implies interest payments for the use of borrowed funds. Late payment of payments leaves the store the right to return the purchased goods, while the bank is trying to return only the funds.

Today, on billboards and price tags in the store, you can see a tempting offer for purchasing goods on credit with zero% or in installments. Sellers use such a marketing move, relying on the psychology of a person, making him a purchase not only of this product, but also of others. The average man in the street does not understand how the installment plan differs from the loan. And he can thoughtlessly take products without specifying the nuances of this proposal. Well, let's figure it out together.

How does an installment plan differ from a loan?

There seems to be no difference between an installment plan and a loan. However, this is a deep misconception. The confusion arises due to the fact that both the one and the other service provides the buyer with a benefit and allows you to purchase the product that he dreamed of, but could not afford. A loan provided by a bank cannot but have a designated purpose. This is a consumer loan for urgent needs, etc. It usually requires collateral, issued in cash.

The lender, of course, is a bank, and the borrower can be both an individual and an entrepreneur. When lending, a loan agreement is signed without fail. You can choose any method of receiving funds with a loan (card, cash), but it is unlikely that you will be able to achieve them instantly. The bank needs several days to check your financial file, the information provided and make a decision. Although some institutions are ready to give a loan on the same day.

Repayment is carried out at a clearly defined time and in fixed payments. It is worth breaking this rule once, and you will have an impressive penalty. The installment plan is a kind of payment for purchases, when a person pays in installments. With the help of a bank representative, it is issued directly in the store. By the way, today there are a number of proposals for the so-called from large banks, we advise you to take a closer look.

So how is a loan different from an installment plan? Answering this question, we immediately note that interest rates await you when lending. In the second case, they are absent. Those. with such a purchase, there is a deferred payment. Immediately after making the first installment, you can leave the store with the goods, however, you will become considered its full owner when the amount is paid in full. This method of shopping involves drawing up a contract, which describes all the terms of the transaction.

What is the misconception

So, we have already said that the main difference lies in the presence / absence of%. It turns out that installments are also provided in banking institutions (Home Credit, Russian Standard, Sovcombank). What is the essence of their scheme? For example, let's say you want to buy a mobile device. At the same time, you decide to refuse a phone loan and take advantage of a more pleasant alternative - to pay its cost in installments, but without%.

In this case, you will most likely not be denied. However, the problem is that by calling it an installment plan, in fact, you will be credited. And when you already understand the truth with a purchase in your hands, you will not be able to refuse a loan for a product. You might think, "I still won." But here, too, everything is not so simple. Yes, the body of the loan is paid by you, the rest is by the store, while it does not remain at a loss, since the amount paid on the loan has been invested in the cost of the goods. The banking organization will benefit from insurance, which will be compulsively offered to you, etc.

Another difference between an installment plan and a loan is that it is the prerogative of a commercial enterprise. Stores decide whether to give it to you or not. And when lending, it is the bank that determines whether to provide such an opportunity or refuse. By the way, if the buyer hasn't paid at least once, the store has the right to take the goods back. As with a loan, here you need to strictly follow the repayment schedule. The contract with the seller covers:

• the cost of the item;
• the amount of mandatory monthly payments;
• the term for which the contract is concluded;
• the date of making the last payment for the goods, and other nuances.

Please note that the contract is concluded exclusively WITH THE SELLER. In other words, third parties cannot participate in the payment by installments. This is an important point that should be of interest to the future borrower. If the seller recommends that you complete the registration through the bank, then standard lending is imposed. To receive the goods, a person only needs a passport. A loan from an installment plan when buying a thing differs in that it requires a larger package of documents.

How to distinguish an installment plan from a loan (video)

In conclusion

So, answering the question: "What is the difference between an installment plan and a loan?", We can summarize:

• terms of registration;
• the presence of an initial payment;
• no need for surety and pledge;
• the speed and convenience of receiving;
• lack of% and penalties.

Each person decides for himself which financial product to choose. If you cannot decide, you need advice on what is better, look at the advantages of an installment plan, weigh the pros and cons. With a bad credit history, for example, this will be the only way out. When the borrower is able to repay the money in the shortest possible time, it is more advisable to contact the bank for a loan. In any case, carefully study the contracts, and you can avoid "pitfalls".

The sale of goods by installments is a very popular service offered by large retail chains. Just remember the promotions from M.Video or Eldorado: “Smart installment plan 0 0 24”, “Installment plan at 0%”, etc. The purpose of such promotions is to sell as much goods as possible on seemingly favorable terms for buyers. Still - we are given the opportunity to defer payments for goods for a period of up to 1-2 years with a final overpayment of zero percent, but if you decide to use such an offer, then you will have to deal with partner banks of the store. And again you are forced to take out goods on credit on the "tricky" conditions of the banks, which we have exposed by revealing the pitfalls of such proposals.

But pay attention, no one is cheating you, at least in the fact that you take the goods in installments, albeit on credit. One does not interfere with the other, but rather complements each other. But these are completely different terms! In this article, we will consider what an installment plan is, and how an installment plan differs from a loan. In general, let's dot the i's in this interesting question.

Financial educational program: what is an installment plan?

The word "installment plan" means a method of selling a product (or service) by a seller to a buyer, during which the cost of the goods is paid by the buyer in installments at specified time intervals (as a rule, every month), predetermined in the installment agreement. This form of payment is most often practiced in the retail sale of goods and services.

The term we are considering is mentioned in article 489 of the Civil Code of the Russian Federation "Payment for goods in installments." And the very first phrase from this article reads as follows: "The contract for the sale of goods on credit may provide for payment of goods in installments."

Do you understand what this is about? The fact is that almost any loan (with very rare exceptions) implies a deferred payment schedule, which is drawn up as a separate annex to the loan agreement.

And according to the aforementioned article, this agreement must necessarily indicate the value of the goods, as well as the procedure, size and timing of payments, along with other conditions of sale and purchase. It is the existence of such an agreement that ensures the legality and security of each of the parties to the transaction. In case of violation of its terms, one of the parties may be subject to judicial sanctions.

However, selling a product with an installment payment schedule and selling a product on credit are not always the same thing. There is a so called term "Clean" installment plan when stores sell goods with the possibility of splitting the payment into several equal parts and posting it in time. Moreover, in this case, they do not use the services of banks - they work without intermediaries. In this case, the buyer repays the recurring payments to the store, or to the legal entity that the store represents.

If a trading company uses the services of banks, and this is exactly the case when it is proposed to buy goods under the "Smart installment plan" or on a "loan at 0%", then the buyer pays the bank every month, i.e. repays the loan taken from the bank. From the moment the loan was issued, you no longer have any financial relationship with the store, except perhaps a guarantee for the purchased product, since it was fully paid by the bank. And it turns out that you, in fact, pay not the cost of the purchased product, but the cost of the services of the bank that issued you the loan (money is also a product, for the use of which you have to pay). Here is such a metamorphosis. And why the overpayment in the end will be 0%, and is it always so, you can find out from the link given at the very beginning of the article - there is very informative information.

So, we have decided that there are at least two options for installments: a clean one, which does not involve the participation of a bank or other credit organizations, and a bank, which, in fact, is a regular loan with an installment schedule of payments. And these two options are far from the same thing. So what are the differences between them?

Differences between installments and loans

To begin with, let's summarize the above: the term "installment plan" is applied to the sale of goods (usually without overpayment), and the term "credit" is applied to the sale of banking services. Accordingly, the main difference between an installment plan and a loan is purely legal.

Let's start with a loan. The basis of the fundamentals, where the receipt of loans begins, is the signing of a loan agreement with a bank (MFO, pawnshop, etc.). Such an agreement unambiguously establishes all the repayment conditions and the responsibility of the borrower. You know in advance the overpayment of the loan if you repay it in strict accordance with the payment schedule. In addition, banks are required to inform you (CPM).

Credit institutions are controlled by the state represented by the Central Bank of Russia, which is the main financial regulator. It establishes the rules of the game: the limit values ​​of interest rates on loans and other indicators that are incomprehensible to an ordinary borrower, but characterize the work of the bank. Departure from the established indicators threatens the bank with the loss of its license.

The borrower in this case has a lot, especially since all the nuances of loans are well "documented" on the Internet and covered in numerous reviews. If desired, anyone can improve their own and build their relationships with banks correctly - bypassing the "pitfalls". But banks still practice "honest" methods of withdrawing funds from the population at the expense of various commissions, etc., in general, they play a little foolishness. You have to earn some money!

Now let's talk about the pros and cons of an installment plan. The terms of payment by installments when purchasing goods are prescribed in the sales contract, which must be legally flawless. It should spell out the rights, obligations (responsibility) of the buyer. Such an agreement is governed exclusively by the civil code of the Russian Federation and has nothing to do with the financial regulator. Therefore, all disputes that have arisen will need to be resolved in courts, and if the buyer does not have legal education, but it will be necessary to involve lawyers for these purposes.

But as a rule, the store itself acts as the "offended" party here - the buyer may violate his obligations and stop paying payments under the agreement in a timely manner or stop doing it altogether. And this promises the store a lot of trouble. As a rule, he does not have the practice of collecting debts through the courts, which leads to additional time and money costs (hiring lawyers, collectors, etc.). Moreover, retail chains do not have experience in risk assessment - they cannot assess the buyer's solvency themselves (scoring and other methods), but limit themselves to requesting several documents, and often just one passport, depending on the purchase amount.

And the buyer should carefully read the purchase and sale agreement before signing it, because you can sign unnecessary "obligations". Special attention should be paid to the possibility of returning (replacing) the product in the event of its breakdown or marriage, which may appear during the warranty period. Before taking the product, compare its price in other stores - it may be significantly higher, despite the interest-free installment plan offered to you. This is one of the ways to earn online trading. Actually, all the benefits should be "considered" by the buyer himself.

As a result, the performance of unusual functions by stores can lead to much less civilized methods of interaction between them and non-fulfilling customers (debtors). And the possible advantages of selling goods without an intermediary in the person of a partner bank can lead to significant disadvantages if everything does not go according to plan: the buyer will delay payments, the purchased equipment will suddenly break down, etc. Therefore, the sale of goods by installments is not so widespread in Russia. Examples of such services are the sale of telephones in communication salons.

Types of installments

There are several types of installments:

• interest-free / with interest;
• long-term (from 1 year to 2 years) / short-term (from 1 month to 1 year);
• individual (conditions are selected based on the characteristics of the client);
• mixed.

Usually, with an interest-free installment plan, the buyer makes a first installment in the amount of half of the cost of the goods (the amount of the installment is approved in the terms of the sales contract), and pays the rest in periodic installments.

Depending on the price of the goods, payments for it can be spread over different periods: the higher the cost of the goods, the longer the payments will be extended. The installment plan is considered long-term with a payment period of 1 to 2 years, and short-term, with a period of 1 month to 1 year. As a rule, for a period of less than 1 month, the goods are not sold in installments (and on credit). In accordance with Article 810 of the Civil Code of the Russian Federation, in the absence of a loan repayment period in the agreement, it is considered equal to 30 days from the date of the corresponding request. Accordingly, it is considered that a reasonable period of payment for goods sold on credit cannot be less than 30 days.

With an individual installment plan, the conditions are selected taking into account the financial condition and other characteristics of the client. Mixed installments can combine its various varieties, for example, you can be given a product without interest on individual terms.

The content of the installment agreement and the list of documents to be provided

As noted above, the registration of goods in installments involves the conclusion of a sale and purchase agreement (or a loan agreement). Such a document contains the following information:

1. Personal data of counterparties (parties to the transaction);
2. Contact information for each of the parties;
3. The subject of the agreement and the obligations of the parties involved in the agreement;
4. The cost of a product or service;
5. Procedure, terms and amounts of payments;
6. Terms of Service and Liability;
7. Signatures of the parties.

The list of documents that will be required when concluding an installment agreement is significantly inferior to what is needed in a bank to obtain a loan. Each seller sets his own requirements, but most often only a passport is required to purchase goods on a deferred basis.

Sometimes in the process of registration, a second identity document may appear (driver's license, passport, etc.). There are organizations that want to be sure of the availability of a job and the amount of wages. There are also such scrupulous sellers who are interested in the family application and the composition of the family.

How old can you get an installment plan?

Any citizen of the Russian Federation who has reached the age of majority can resort to a payment deferral in the process of purchasing goods and services, but it is more realistic to get it from the age of 21-23. Older people, as a rule, already have a steady job and a stable income. There is no need to count on an alternative loan option for older people over the age of 70.

The applicant must have a permanent place of residence, or better - a permanent residence permit. Preference is given to working clients with a stable salary. The amount of income does not really matter.

Anyone wishing to receive an installment plan that does not meet the requirements of the seller can resort to drawing up an individual contract, providing, for example, a pledge or guarantors. Such cases are quite rare, but practice confirms that they work and are quite acceptable, since they are able to eliminate the risks of the lender.

At the end of the article, we can say that a "clean" installment plan without paying additional interest is definitely beneficial for a disciplined buyer, because you do not pay interest for this service. Just pay attention to the price of the goods - whether it is too high, and whether there are additional payments (insurance, etc.).

Very often, many stores offer to purchase goods from them not on credit, but in installments. Outwardly, it seems that this is "not the same as buying on credit." What is the difference and is there any?

In short, the installment plan offered in stores is of two types. The first - "advertising ploy" - in fact, under this term they hide for the purchase of goods in stores - everything is the same as before. An extremely rare second type is the sale of goods with a deferred payment schedule.

What is sad is that if you search for information in search engines on queries like “buy goods by installments”, then no one hesitates to display ads for these phrases and even use them in the headlines of their ads. And in fact, when you go to the relevant sites, it is proposed to issue the goods on credit from a partner bank.

A cursory study of top advertising offers, to issue a loan for any product, shows that absolutely all such “advertisers” (even large federal chains selling household appliances and electronics) under the term “installment plan” actually have an offer to conclude an agreement through a partner bank.

Interest-free loan variation is the most common, although among retail it was found only in the "Center Corporation".

Tax and legal aspects

Let's start with the fact that there is no such term in the legislation in its "pure form" - this is an everyday (even more - advertising) definition. If we talk about the legal side of the issue, then a deferral is a transaction (in terms of the Civil Code) with special payment terms. That is, the product or service is provided immediately and in full, and payment is not immediately, but in separate payments spaced in time.

Yes, the whole business works like that, and no one there uses the aforementioned term. There is a contract - which spells out the terms of payment for the delivery of goods or the provision of services. The payment schedule - the essence of the same philistine "installment plan" - is either drawn up as a separate appendix to the document, or is stipulated directly in the text of the contract for the supply / provision of services.

If we talk about purchases made by citizens, then the main risk "what if the money does not pay" is borne by the seller - he needs to guarantee himself the receipt of money from the citizen. And the only way to do this is to draw up a normal (from a legal point of view) sales contract, which will spell out the buyer's obligation to pay a certain amount according to a certain schedule.

For a buyer signing such a document, in general, there are no particular risks. The most important thing is to carefully read the terms of the contract regarding the "buyer's obligation" so as not to take unnecessary responsibility.

The most important thing that must be foreseen in such contracts is financial relationships in the event of a return of goods (for example, when you got a product that is defective through the fault of the manufacturer, it is not possible to exchange or repair it, and the only way is to return the goods and money). There is no general rule, and even more so - legal requirements - in this matter. Everything is at your discretion.

And the second point. A sales contract drawn up in this way with a schedule of deferred payments is regulated only by the Civil Code and that's it. If later it "turns out" that the seller "signed you" to "special obligations" under the contract, it will be possible to defend yourself only in court. This is the main difference from buying on credit - there you conclude a relatively standard one, and this area of ​​financial relationships is closely monitored by the supervisory authority represented by the Bank of Russia, as a result of the "tricks" in this sector from year to year it becomes less and less.

What is the fundamental difference

The main difference between a loan and an installment plan, as already written above, is the legal registration - either it will be a sale and purchase agreement with a seller and a payment schedule, or it will be an agreement with a bank.

As for the financial benefits, you should not think that in the case of an installment plan, even with the prefix "no overpayment", you will save on bank interest. Far from it! As a rule, in this case, all prices in the store are indicated with the clause "if paid in full by cash - 40% discount." Accordingly, no discount is provided for other cases. Here's the hidden interest: pay immediately in cash - buy the product cheaper, with a deferred payment - pay more.

Another thing is that if banks from January 1, 2015 are forced to focus on the maximum loan rate calculated by the Bank of Russia - that is, stores are “regulated” by the state.

As for "clean" installments in stores, the amount of the discount - the essence of your overpayment - is not regulated by anyone - the store will do as much as it wants.

So it's not a fact that the purchase will be cheaper. For the loan, the bank is obliged to calculate the full cost of the service - the percentage of overpayment, so that you can compare the offers of different banks with each other. In the event of a delay, the seller is not obliged to calculate anything for you - you will have to calculate the degree of profitability yourself.

In the case of a loan, information about your solvency will go to. Otherwise, no. If you fulfill the terms of the agreement well - it would be nice for the banks to find out about this through the credit bureaus - in the future, when applying for a loan, such a reputation will be very useful. BUT there is also a reverse point - if for some reason you have problems with payments - banks will not know about such "flaws".

Services in stores

The installment plan offered in the Eldorado chain of stores without a down payment and without overpayment is a promotion that does not apply to all products of the chain, but only to certain categories of them - the full list can be viewed on the website. In stores, the products participating in the promotion are marked with a special “nameplate”.

In fact, this is a loan for a period of 6,10,12, 24 or 36 months. The promotion is valid until September 23rd. Each category of equipment has its own conditions of the promotion.

We are used to the fact that such services are usually offered by stores selling household appliances, electronics and other things. An unexpected offer was found in the Detsky Mir chain of stores. Together with the REVO deferred payment service, Detsky Mir offers to make a purchase with a deferred payment in the amount of 500 to 30,000 rubles for a period of 3 or 6 months.

Within the framework of this offer, you can order the service directly at the checkout using your passport without overpayment (when purchasing for an amount of 500 rubles or more). For its registration, it is enough to provide only a passport. Debts can be repaid in mobile salons, through Qiwi, Eleksnet terminals, as well as on the REVO website with a bank card.

The only store that provides the service directly and without intermediaries - on its own behalf - is the Corporation Center chain of household appliances stores. You can purchase not only goods, but also related services (delivery, installation, customization or installation of purchased equipment).

Only a passport is required to complete the contract. The terms of the installment plan are made out individually. In total, the store offers three programs: for 4, 10 and 16 months.

There is no overpayment in the shops of the Corporation "Center". The peculiarity of the unique offer is very simple - when buying for cash, you are given the maximum discount on the product. Depending on the program, you will be given your own discount. That is, you simply pay more than when buying in cash. Isn't it an overpayment of interest?