Types of Personal Loans: Features and Conditions

The types of personal loan are varied! Do you know how it can be done? Where can it be requested? Borrowing money is a form of personal loan granted with or without collateral. To simplify the explanation, in general, it is a financial transaction carried out to be able to raise funds in money with the addition of the collection of interests and some tariffs.

The contracting is usually done in credit institutions, private and state banks, credit companies, associations, category unions, credit unions, insurance companies, non-governmental organizations, relatives and friends, and private lenders (loan with moneylenders).

The transactions are offered at institutions authorized by the central bank to lend money, the action involves a number of prerequisites such as pre approval, collateral (vehicle refinancing and real estate loan), guarantors, guarantors, pre-dated checks, payroll, credit card (card withdrawal), among others.

Characteristics and types of personal loan

Characteristics and types of personal loan

Regardless of how the personal loan is made, a common feature among all lines of credit and financing available in the market is, all must be repaid to the creditor in monthly installments plus interest, that interest can be fixed or pre-fixed.

Repaying the loan on a number of installments is another feature in common, however, the amount changes according to the type and amount that the applicant can commit in their monthly income. Term of the loan? When hiring a personal loan, the client usually chooses or is determined by the lender a specific term to repay the money financed in installments paid monthly. Therefore, calculating the value of the parcels and choosing the one that best fits the pocket, is sure to save some wear and tear ahead.

What are the personal loan terms

The terms of the personal loan vary between short, medium and long terms, institutions offer periods between 10 days (loan with credit limit), personal loan up to 30 days but are usually granted from 6 installments reaching a maximum of 48 installments or 60 installments, of course the term changes to + or – due to the criteria adopted by the creditors. It is worth remembering that interest rates are disclosed by the CB.

It is worth remembering that economists and financial advisors are unanimous in advising against taking personal loans without an emergency need of any kind, many forget that loans are debts, and if they are badly managed they can destroy the budget or the financial life of a citizen or a family. However, if a conscious and well-managed personal loan is made, the effect can be beneficial.

Personal loan conditions

With the exception of private loans, operations granted by credit and banking institutions only release the resources requested to the client after a credit analysis has been made in the register, there is some financial backlog, restriction on the name or registration of the client’s CPF in the organs such as SCPC and Serasa etc., the majority do not lend the requested money, being the exception only for the “personal loan with payroll”.

Pre-approved Personal Loan

A type of personal loan easy to get at any time. It is free of bureaucracy and can be requested day, night or until dawn, do not need to go to the bank to sign any paperwork, it is called the credit limit.

This type of operation is framed by a pre-approved personal loan, to hire the account holder to make a phone call or give a few clicks through the access banking system on the bank’s website via Internet, done that, the money value is made available immediately.

There are numerous types of personal loan, modalities, lines of credit and financing, if you are planning on making one, the best tip is to research, analyze and ponder; if you are not getting it, make the hiring aware that the loan will have to be returned to the lender, otherwise you will have problems.