Personal loans are financial tools granted, usually by a bank or a lender, which gives you a specific amount of money, according to your needs, which you must pay within the agreed period of time and periods.
This type of loans have medium to long term payment schemes and fixed interest rates. It is usually resorted to when there is a need to finance a high amount for a long-term project such as a house, car, start a business, among other things.
A personal loan is different is different from a quick loan and has specific requirements established by each of the lenders. Below we will talk about all the characteristics of this type of credit and how it differs from other types of financing.
How do I apply for a personal loan?
To apply for a loan of this type it is usually necessary to go personally to a bank branch and meet a series of requirements, which vary according to the institution.
The requirements vary according to the amount requested, the required deadlines and your customer history with the bank. However, they usually require proof of income, proof of a fixed address, personal references and a good credit history.
It is important to mention that a particularity of this type of credit is that they always require a good record in the credit bureau, that is, they take as a decisive factor their previous behavior as debtor to grant the credit or not. It is also important to mention that, with some exceptions, only an amount proportional to your monthly income is granted.
Some institutions also request a guarantee to grant a loan. Payment terms, as well as interest rates, usually vary according to the evaluation that the bank makes of you as a customer.
How much money can be accessed through a personal loan?
This is very variable. The amount that the bank agrees to lend to you will depend on your income, credit history and history as a client of the institution. Their current income should also be taken into account since banks usually do not lend a larger amount to them.
Do I have to pay something to the bank?
Most banks charge fixed interest rates based on the Annual Total Cost. It is the obligation of the institution to make this information known before accepting your loan.
In addition, some companies charge a small percentage (approx 2%) for opening or an annual fee.
What are the payment schemes?
The amounts and payment terms will depend on the schemes offered by the institution. The payment periods are usually 12, 24, 36 or 38 or fixed monthly payments.
Are there other types of credits besides personal loans?
Personal loans usually have longer application processes and more rigid requirements, however, they are the option that offers higher loan amounts and lower interest rates. They are special for long-term investments.
However, if your needs are short-term and you do not have the requirements that banks request for a personal loan, the option of personal loans without a desk may be the most appropriate. This type of loan requires far fewer requirements to be requested and a shorter period of time to be approved, but they must be reimbursed in shorter periods of time and with higher interest rates. Thus, online loans are the best option for those who do not have the possibility of carrying out the long process required by a banking institution and need money expeditiously.
In addition, it is important that you choose the loan company that best suits your needs, for this you can use search engines such as Tituba, which, taking into account your requirements, look for the most suitable companies for you.