Bank profit directly depends on the interest rate on which you will receive a loan. But in the context of competition for building a client base, you have to reduce the percentage of the loan, thereby depriving itself more profit.
In order to compensate for the loss, the banks will come up with pseudo-free conditions that increase the number of borrowers, but in fact they benefit only the creditor.
Often, with a consumer loan with a low interest rate, the obligatory condition is insurance. Banks assure that it is profitable, since you not only get a low percentage of the loan, but also insure property or, for example, your health.
Many agree to these requirements, but then it turns out that there could be no mandatory insurance. Yes, and overpayment with insurance comes out more than wheezing, but with an increased percentage.
Thus, we conclude that the reduced percentage does not mean that the conditions will be more profitable. It is these suggestions from the lender and are called a loan with pseudo-benefit conditions.
A bank may be envisaged to increase interest rates from a certain month after the conclusion of the loan agreement. This item must necessarily be registered in the documents. But because of the stress experienced when signing all papers, the borrower can neglect reading documents, and misinterpret sight of such an important point.
Often this situation can be observed with a «special sentence only today and only for you», which implies a low interest rate that interests the client. Bank employees hope for your inattention, and perhaps and try to completely distract from a thorough study of the contract.
In order not to get caught on the trick of the bank, and not get a loan with unprofitable conditions, we advise you to carefully study the loan agreement before signing. If the text of this document is difficult for you, you can seek help to a lawyer who read it will answer all the questions you are interested in and will explain incomprehensible points.