The personal loan is a great option to get money in a practical and fast way. Some people usually seek this option to ease their financial situation, while others want to achieve some goal, such as opening their own business or taking a trip.
Because of this freedom of money, this is one of the most requested types of credit. Do you want to understand how the personal loan works? Then check out this text where we will show you how it works, what the fees are and what to do to request it.
What this article covers:
How Personal Loan works
A personal loan is a grant of a certain amount of money, made available by the bank or financial institution to the consumer. The great differential of this type of credit is the freedom that the contractor will have with the money, not being necessary to give any type of satisfaction to the bank about what he will do with it.
Because of this, you can use the personal loan money for a number of different things. One of the most common situations is to use the money to get rid of high debts, or to have an initial investment contribution to open your own business. But it is also possible to use it for medical treatments, travel, studies, renovations and several other negotiations.
In exchange for borrowing money, the bank will charge the borrower a predetermined monthly interest rate. Let’s better understand how these rates work.
What fees are charged on the Personal Loan?
The interest rates charged on the personal loan may vary according to the amount and duration of the contract. That is, the more installments the payment of the borrowed amount is divided, the more interest the contractor will have to pay.
The percentage of interest also varies according to the bank that grants the credit. While some banks charge a fee of 4%, other banks charge up to 8% interest on personal loan installments.
Who can apply for a Personal Loan?
As long as you are 18 years of age or older and can prove your income, anyone can take out a loan, whether you are a worker, retiree or even someone who has a negative CPF, in which case the rates are usually higher.
In addition, anyone applying for the loan will undergo a credit analysis, carried out by the financial institution that will provide the money, before approval.
What are the criteria?
In addition to being over 18 and proving income, it is also necessary to have an identity document and proof of residence. After submitting all these documents, the bank will then do the credit analysis.
Based on this analysis, the bank must decide whether or not to approve the loan. If approved, the details of the agreement will be defined, such as the maximum loan amount and also the payment period.
How do I receive the Personal Loan?
After the credit analysis, the bank will present the loan conditions in a contract. If you agree with the conditions, the consumer will sign the contract and wait for the money to fall directly into your account, with a maximum period of two days.
5 best personal loan companies
Taking out a personal loan has become even easier these days, as it is possible to apply for it completely online, without having to go to the bank. Among the companies that provide personal credit we can highlight:
- Good for Credit;
- Serasa eCred.
The first four companies provide the loan in a practical way and with affordable interest rates, while the Serasa eCred has partnerships with several banks and will present you with different loan proposals, so that you can select the one that best aligns with your needs.
Therefore, you just need to get in touch with these companies and find out about their proposals, in order to be able to apply for your personal loan.