Bank loan: learn how to choose and hire

With so many options on the market, it is even difficult to know how to choose a bank when taking out a loan. Do I go with the most modern bank that has not been operating for many years or do I choose the traditional bank that is already consolidated in the market?

In addition, there are many credit products available, which also ends up being a “problem” when choosing. After all, how do I know which one is best for me?

If these doubts arise when you think about a bank loan, we are here to help you! ?

What is a bank loan?

A bank loan is when you request money from a financial institution for a certain period of time, and you do not need to justify where you are going to use it. That is, you can take out a loan to value ratio to pay off debts , buy a house, a car, travel, have surgery, whatever you want or need.

After taking this credit, you need to return the borrowed amount to the bank. However, this return is increased by charges such as interest rates , for example.

These fees can vary in several ways, such as the number of installments you will pay back the money, if the loan has some type of guarantee, among others.

The loan can be made both at a bank and at other types of financial institutions such as credit unions or fintechs.

Bank loan types

There are several types of loan and choosing which type is best for you varies according to your needs, such as payment term, amount of installments, interest rates, among others.

Therefore, you can choose one of the following:

Personal loan

One of the most common types of loan, staff is usually released quickly and does not need collateral to apply for it.

However, they usually have higher interest rates, precisely because of their practicality and agility. These fees, as already mentioned, vary according to the institution, term and amount requested.

The most common thing is that negative people are unable to apply for this type of loan, however many institutions release the money even for those who have a dirty name in the market. In that case, the interest ends up being even higher.

secured loan

Unlike personal loans, this type of credit requires a guarantee to release the money. This guarantee can be for a property , car, motorcycle or cell phone , depending on the location and the amount requested.

In this type of loan, you leave your asset in fiduciary alienation , that is, it becomes the banking institution until you pay the debt, but you can continue to use it.

Secured loans usually have lower interest rates than personal loans, in addition to different payment terms, precisely because they have a much lower risk of default since the borrower does not want to lose the asset to the bank.

Payroll loan

We’ve already talked about payroll loans here on the blog . It is aimed at employees of public and private companies, INSS retirees and pensioners, and Armed Forces personnel.

The great differential of this type of loan is that the debt payment installments are deducted directly from the borrower’s salary or benefit.

This type of charge ends up being a kind of guarantee, which makes the payroll loan also a modality with attractive interest rates.

In the payroll loan there is also the so-called consignable margin , which is the commitment limit of the salary or benefit with the debt. In this case, the installments cannot be greater than 30% of the maturities.

How to get a bank loan?

To take out a loan both at banks and at the other places mentioned above, it is necessary to get in touch with the institution and do a simulation.

You determine how much money you need and so the bank assesses whether or not it is able to lend.

For this, some financial institutions request a series of personal documents and proof of income. Others still ask for some kind of guarantee to make the loan.

All this varies by location, type of loan and amount. Some places may have more or less bureaucracy.

online loan

Nowadays, there are several online loan options where you can apply without leaving home and with less bureaucracy.

Here you have more than 30 financial institutions that can offer you the best rates and terms that suit your credit needs.

Just register in less than 5 minutes and you will already receive one or more proposals for you to compare and hire the one that fits in your pocket.

How to choose and where to borrow?

To know which type of loan to choose, first define what you intend to use the money for. Thus, you can already determine the total amount you need and other information, such as the number of installments and how much you can pay monthly.

Also evaluate the company you are going to borrow from. We mentioned at the beginning about making the decision to borrow money from one of these new online banks or from a more traditional financial institution.

First, research well about the institution and its suitability. Thus, you avoid suffering some kind of blow.

Also evaluate the terms of the loan, such as interest rates or the term of payment of installments.

Of course, you’re not going to borrow money from a bank you’ve never heard of! But also know that these new fintechs offer many worthwhile products at more affordable rates due to lower operating costs.

Want to know more about loan and other finance tips? Stay tuned here on our blog!