The loan product has been a key factor for growth in the economy. But, especially in recent years has excelled personal loans and this is due to market demand. And is that after the recession, users got into debt and now seek to consolidate and pay off that debt and a personal loan is a perfect opportunity to do so. You can also take advantage of a loan to pay for any purchase or project you wish to make.
Know what a loan is and some other points that you should consider when borrowing money. Once you know them, request yours through the credit section, you will find a table with the best products in the online market. So you can compare them, and of course take the best one according to your needs.
What is a loan?
A loan is when you receive money from a friend, bank or financial institution in exchange for the future repayment of the principal, plus interest. The principal is the amount you borrowed, and the interest is the amount that is charged for receiving the loan. The lender is the financial institution or the person who lends the money and the borrower is the person who benefits from the borrowed money. Because the lenders run the risk of not collecting the loan, they have to compensate that risk by charging a fee, known as interest.
The loans are generally guaranteed or not guaranteed. A secured loan involves the pledge of an asset (such as a car, land or house) as collateral for the loan. If the borrower fails or fails to repay the loan, the lender takes possession of the asset. An unsecured loan option is preferred, but it is not as common. If the borrower does not return the unsecured loan, the lender has no right to receive anything in return.
In this product we acquire a financial responsibility, for which we promise to return the money on the date agreed in the contract. Let’s talk now about how to request the best personal loan with safety and comfort.
The request for a credit
When it comes to applying for a loan, the ideal is for borrowers (you) to have a clear idea of how much they want to get out, along with how much they can repay on loan repayments, before they start using their loan application.
A loan calculator, a tool offered by most major lenders on the Internet can help you determine what your monthly repayments will be.
For all this, you can clearly see the capacity of your pocket.
What is the withdrawal period on a loan?
A withdrawal period is a useful clause for when you change your mind. Part of the Consumer Credit Law, which allows you to cancel a contract without being penalized. We all usually sign contracts, whether to join a gym, buy something online or apply for a loan. With which you have a withdrawal period of 14 calendar days during which you can change your mind. This period usually begins the day after receiving your confirmation letter.
If you wish to cancel your loan without paying interest, you must inform, either by calling or writing an email to the lender and then you will have to repay the loan within 30 days. You do not have to give explanations of your decision, you just have to notify it within the stipulated period.
This information almost nobody has it and however it is very important to take it into account, since you can back out of a contract without having to pay for it.
Consider the costs and interest rates
As in all our articles we always recommend our users to consider the interest rate and any other cost associated with the product they want to hire.
You must think about your financial ability to pay the amount you are borrowing.
- Unsecured loans, such as personal loans, generally have higher rates than those that are guaranteed.
- Be careful with requesting more than you need.
- Excessive debt could put you in financial trouble, even lead to ruin.
- It is not a good idea to take a financial product if you can not afford it.
By means of our credit comparison, you will be able to compare the different rates in all the products, which makes it easier for you to choose the best one for your pocket.
In addition, you can see all the most relevant features in each of them. Do not forget that knowledge gives you power, especially when it comes to your credit. Do you know in detail what a loan is and what are its uses?… and Why can you apply for a loan?
Different needs, different loans…
All people need to apply for a loan at some stage of life. Whether to buy your first car, a house, to pay for a wedding, renovations at home, start a business, etc. Different needs that according to each of them is convenient to request a loan or another. So it is very important to know how to choose well, since the circumstances are different, so are each of the financial products. In our credit articles you can be well informed of all the important aspects you must know before hiring this financial product.
Whenever you want you can look for information here in this blog, not only for credit but for all the products that we offer in our comparators.
And to finish…
If you have never received a loan to buy something, you are certainly among the minority! Loans can be great opportunities, but they can also get you into many problems. One of the keys to financial success is understanding when credits are a good solution for your situation.
The first thing is to take into account: that the credits are never a good idea, if you can not pay them in the required period. Since, instead of finding a solution, you can simply find the ruin. Many consumers opt for a personal loan at some point, whether to buy a new car, a wedding or a family getaway, or to consolidate the debt in one payment. However, it is essential that anyone thinking of taking out a loan is well informed.
There are many loans in the market designed for different purposes and people in different circumstances, and understanding how they work is the first step to borrowing responsibly.