Three common mistakes of Russians in lending are named

Experts from the Roskachestvo Center for Financial Expertise named on Thursday, June 18, the three most common mistakes that Russians make when applying for loans.

According to experts, one of them is the perception of installments and BNPL services (Buy Now, Pay Later — "buy now, pay later") like "free" money.

"Many people mistakenly believe that if there is no interest, then there is no overpayment, which means that you don't have to delve into the conditions. In fact, fines are provided for late payment of even a small amount, which can significantly increase the total amount," Roskachestvo said in an interview with Lenta.Ru .

The ministry stressed that these are still loan obligations and they should be treated as responsibly as a regular loan — carefully read the contract, monitor the timing of payments and do not take installments for impulsive purchases.

Another mistake is ignoring the real cost of the loan and chasing a low monthly payment, NSN reports.

"Many people agree to extend the loan term in order to reduce the monthly burden, not realizing that the final overpayment in this case will be significantly higher," Roskachestvo warned.

The agency also attributed the unwillingness to compare offers from several banks to the number of mistakes, according to the website. kp.ru . In order not to overpay and not take on unnecessary obligations, experts advised studying the conditions in three or four different credit institutions before settling on one option.

The subscriber is unapproachable: banks have begun to cut the requested mortgage amounts

What to do if a credit institution does not provide the loan needed to buy a home

Earlier, on June 4, Deputy Prime Minister Dmitry Grigorenko said that about 30 million Russians have already issued self-locking loans, trying to protect themselves from the actions of remote scammers, writes Life.Ru .

Julian Ovechkin, head of the mortgage department at Level Group, said on April 23 that a long-term mortgage can reduce the monthly burden and make the loan more manageable, but the repayment strategy depends on the borrower's financial situation. The expert added that partial early repayment with a shorter loan term is considered the most effective strategy, especially in the first half of payments.