Debts, emergencies, problems in financial life. There are a number of reasons why someone may run out of money and have to borrow. And with so many types of loans available, it is only natural that there is doubt about this.
Therefore, in this article we will list the main credit modalities with their advantages and disadvantages so that you can choose the best one.
The personal loan is one of the simplest, quickest and easiest ways: the loan agreement is made directly between the financial institution offering the loan and the person who makes the loan. Through a credit analysis.
However, the interest on this loan is usually high compared to other types of loans.
The payroll deductible loan is deducted directly from salary, retirement or pension.
To get this type of loan, you need to be an employee of a CLT company. For retirees, it is discounted monthly from the benefit.
Among the types of loans, payroll loans have the lowest interest rates in the market because the risk to the bank is lower.
Therefore, it is the most used by people who fit the profile.
It works as a pre-approved limit for when the customer spends more than they have on account balance. In these cases, the balance becomes negative – and it is precisely this amount that goes into the overdraft.
Thus, the interest on this loan is the highest in the market.
In this type of loan, the person offers the bank an asset as security for the repayment of the debt.
If the person is too late in repaying the loan, there is a possibility that this good – usually a property or vehicle – will be taken by the bank to repay the debt.
Nevertheless, this type of loan has the advantage of providing the lowest interest rates. This is precisely because there is a good offered as collateral, so that the risk to the bank is lower.
What type of loan to choose?
So, your choice of loan depends on – your goal with the loan, the amount you will borrow, the time you intend to repay it, your financial situation… There are many variables.
For the ideal is, after evaluating your financial situation, see which one fits your case best, and which one is the most advantageous.