All About Personal Loan: Complete Guide

Credit One vs Capital One Which is better?

A personal loan can be an option for you to achieve your goals and conquer your dreams. But for everything to work out, you need to choose the credit that best suits your pocket and profile.

It has everything you need to know, from researching loan types, understanding the difference between them, how to apply, and even what to do after taking out or disapproving credit.

Check it out now and share it with your friends who need to understand more about this subject too.

What is a personal loan?

A personal loan is a financial product offered by banks and finance companies that lend money to the service borrower (applicant) without the need to prove its purpose.

It is a credit agreement between a customer and a financial institution. The customer receives a previously agreed amount, plus interest. The amount must be returned within a specified period by means of a signed contract.

A personal loan is the most practical solution for anyone who needs money for any purpose. Most of the time, it is asked to solve an emergency, pay off debts, get out of credit card revolving, or overdraft.

When you apply for a principal loan, a credit analysis will be carried out. The credit analysis will determine a positive or negative answer.

Once you have your application approved, you will receive the full money. The installments must be paid monthly, as agreed upon in the contract.

What is the difference between a personal loan and financing?

In a personal loan, approved credit can be used for any purpose. Example:

  • bill payment;
  • debt discharge;
  • education;
  • purchases;
  • trip;
  • other goals.

Financing, on the other hand, necessarily has a specific destination, such as:

  • vehicle purchase;
  • Property purchase.

What is the difference between a personal loan and a payroll loan?

While the personal loan is intended for consumers who have ties to the financial system and its services, such as a checking account or salary account, check, credit card, among others, the payroll loan is aimed at retirees, pensioners, employees of private companies and public servants.

The main difference between a personal loan and a payroll loan is in the form of payment. In the payroll loan, the value of the installments is deducted from the payroll. In the case of retirees and pensioners, the value of the installments is deducted directly from the benefit, even before the money falls into the account.

Who can apply for a personal loan?

To apply for a personal loan, you must be 18 years of age or older and have an active CPF. In addition, it is necessary to present an identity card (RG) within the validity period (10 years from the date of issue) and CPF. 

How to apply for a personal loan?

To apply for your personal loan, you can submit a loan application in person at the various banks and finance companies or apply for a personal loan online.

In the online personal loan, the main advantage is that you can apply through the internet anytime and anywhere.

Hiring in online credit malls, such as Bom Pra Crédito, is even more practical, in addition to offering all the convenience of online application and more chance of approval.

That’s because, with just a single registration, your request is potentially forwarded to several financial institutions at the same time.

cheapest personal loan

To get a cheaper personal loan, it is recommended to look for two or more proposals. Thus, you can evaluate the interest and installments that fit in your pocket.

Before hiring, put everything at the tip of the pencil: the amount requested, the interest that will be charged, the total amount of the loan, and the installments.

Using an online credit mall makes this research and evaluation much easier. Evaluate the long-term debt and not just the installments.

Do I need to pay something to get a loan?

No! Never make any kind of payment to get your personal loan. Stay tuned and be wary of advertisements and companies that offer easy loans or loans for negative people with very low-interest rates.

Immediately close the negotiation if they request any kind of advance payment, even if it is for surety or guarantor.

What is credit analysis?

When a friend borrows something for you, like a book, an outfit, or even a little money, you expect to get it back, don’t you?

However, there is no guarantee that this will happen. Simply, you evaluate who is asking and, if the person has positive points, ends up lending what was asked.

When you receive a personal loan application, banks and finance companies do not know you. Therefore, financial institutions look for alternatives to find out more about you, which is called credit analysis.

Personal credit analysis has five phases:

  1. Request for registration data;
  2. Restriction analysis on your behalf;
  3. Credit profile analysis including credit score;
  4. Analysis of your income commitment;
  5. Analysis of your documents.

personal loan disapproved

If your personal loan application has been disapproved, it means that you have not passed the personal credit review. 

In this case, consider the possibility of postponing your plans. Reduce your expenses and look for alternatives to earn extra income.

Also, try some money with family or friends. If so, look for your creditors and renegotiate your debts as soon as possible.

Remember that keeping your expenses below your income should be your priority right now. With a balanced budget, with all the bills paid, and with the name without restriction, it is possible to get a loan soon. 

Approved personal loan: next steps

If, after the credit analysis, your personal loan is approved, you must follow the steps requested by the bank or finance company. Normally, after your order is approved, you will be asked to sign a contract.

This document must contain all information regarding the service. In some cases, financial and online credit malls already offer the digital signature of the contract.

personal loan agreement

To avoid future problems, read all the information in the personal loan agreement. If you do not understand any clause, do not sign.

First, look for the answers to all your questions because when you sign a contract, you agree with all the conditions described in the document.

In a personal loan agreement, the following information must be included:

  • IOF (Tax on Financial Transactions);
  • Installment: amount and value of installments and interest rate;
  • Personal Loan Net Amount: The amount you will receive;
  • Payment method for installments: debit, bank slip, or post-dated check;
  • CET (Total Effective Cost): Total cost of the loan in annual interest rate format, including all fees, charges, and taxes.

Personal loan: payment options

The payment of the personal loan can be made in three ways:

  1. Automatic debit registration: the installments will be deducted monthly from your checking account;
  2. Boleto Bancário: payments must be made monthly at ATMs or customer service, lottery and even on the bank’s app on your smartphone;
  3. Post-dated check: checks must be filled out with the payment date of each installment and delivered to the bank or finance company.

Pay your loan installments on time.

Paying the installments of your personal loan on time is more than honoring signed with the creditor. With this, you will also be seen as a “good payer” by the entire financial system and, in return, it will be easier to acquire credit, such as a loan, financing, such as a car and appliances, credit card, or even the purchase of a house. Own.

Can I change loans?

Anyone who already has a personal loan in progress can apply for credit portability and transfer the debt from one bank to another. This is especially possible if interest rates are lower.

Therefore, if you intend to do so, contact your bank and request a consolidated debt, which should contain information about the interest rate, outstanding balance, and contract number.

By rule, the bank has up to one business day to pass on all the information. Credit portability is guaranteed by Resolution No. 4,292 of the National Monetary Council.

Is it possible to pay off a loan early?

If you have enough money to pay off your personal loan and if this amount will not be needed in the next few months, you can pay off your loan in advance. Thus, you save the amount of interest that would be charged in the next installments. 

By aamritri

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