Types of Loans and Their Benefits
Types of loans : There are different loan options. Personnel, consigned, with vehicle or property guarantee, rotary and overdraft. A summay is on left-bank.org
Despite the various loan modalities, you need to know better how all types of loans work , to find the best loan for your profile. Next, check out the loan options and their main features:
The personal loan is one of the most popular types of loans for those who need urgent money for any purpose. It is not necessary to prove its use. It can also be requested at any time, either to pay off debts , get out of overdraft , run out of store credit or even pay for a trip.
Personal loan is a simple and fast hiring credit modality. The payment of installments must be made monthly, by means of automatic debit, bank slip or pre-dated check.
You can apply for your personal loan at banks, financial institutions or at the online credit mall . In the latter option, the We-credit can help you find the perfect personal loan for your needs. And the best: at zero cost!
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The payroll loan is one of the types of loans for those who work with a formal contract, retirees or pensioners of the INSS and public servants. This type of loan has one of the lowest interest rates on the credit market.
Payment of payroll installments is done with a payroll discount (paycheck) or before the social security benefit. To apply for a payroll loan, the applicant must have a settable margin , which is the maximum value of the remuneration received that can be committed with the payroll loan.
In the case of retirees and pensioners, payroll loans may be requested from other banks, provided that there is an agreement between the financial institution and the body responsible for payment of the benefit.
Vehicle Warranty Loan
The loan vehicle warranty is one of the types of loans that uses the liens as collateral. The vehicle ensures payment of the debt if the agreement is not fulfilled by the applicant for the loan.
Only those who have vehicles removed and with up to 10 years of manufacturing can request the loan with vehicle warranty . There is a probability of receiving up to 70% of the value of the vehicle depending on the seat chosen and the conditions of the vehicle. The interest rate of this type of loan also varies according to the conditions of the vehicle and the number of parcels chosen.
Loan with Property Guarantee
The home equity loan , also known as real estate refinancing or real estate mortgage, is one of the types of loans that uses a residential property of its own and is removed as a condition of the operation.
Only individuals can apply for this type of loan. The value can reach up to 60% of the property. The secured loan is indicated for those who need a high value loan. In addition, the ability to pay in the long run is important. The maximum term can reach 20 years.
Types of Loans: Revolving Credit
The revolving credit works as a type of loan that comes into play when the payment of the credit card bill is not made in its entirety. If you choose the minimum payment or any amount other than the total credit card bill, the card administrator allows interest-bearing financing.
With new credit card rules , which came into effect in April 2017, interest rates have begun to fall but are still among the highest in the credit market. Here’s how to get rid of revolving credit debt once and for all!
The overdraft is a type of simple and convenient loan. The limit is pre-approved by banks and is available in your checking account. The credit can be used at any time for any purpose. You can check if you have overdraft limit on your bank account statement or even the bank application.
The special check works as follows: if you have R $ 900.00 in a checking account and limit in the check of R $ 500.00, the total amount that can be used is R $ 1,400.00. The more overdraft money you use and the longer it takes to pay, the greater your debtor balance in the bank.
This type of loan also has one of the highest interest rates on the market, losing only to the revolving credit. Check out tips on getting out of overdraft.
Now that you know all types of loans, be sure to check out We-credit!