All About Personal Loan: Complete Guide

What is personal loan?

Personal Loan is a financial product offered by banks and financiers who lend money to the service taker (applicant), without having to prove their purpose. This is a credit agreement between client and financial institution. The client receives a previously agreed amount, plus interest. The amount must be returned within a specified period, by means of a signed contract.

 

The personal loan is the most practical solution for those who need money for any purpose. Most often, you are asked to resolve an emergency, clear debts, exit the credit card slip or overdraft. Read about tips for getting out of debt and getting out of the red.  

 

At the time you apply for a personal loan, a credit analysis will be done. The credit analysis will determine a positive or a negative answer. Once you have your application approved, you will receive the full money. The installments must be paid monthly, according to agreement in the hiring.

 

What is the difference between personal loan and financing?

In personal loan, approved credit can be used for any purpose. Example: payment of bills, discharge of debts, education, to make a purchase or even a trip. The financing, however, necessarily has a specific destination, such as the purchase of a vehicle or property.

 

What is the difference between personal and payroll loans?

While the personal loan is intended for consumers who have links with financial systems and their services, such as checking account or payroll, check, credit card, among others, the payroll loan has as target audience retirees, pensioners, employees of private companies and public servants.

 

The main difference between personal loan and payroll loan is 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 discounted 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 or older and have an active CPF. In addition, it is necessary to present identity card (RG) within the validity (10 years from the date of issue) and CPF. Proof of income and residency may also be required. See the list of documents for personal loan and which ones you need to have at hand.

 

How to apply for a personal loan?

To apply for your personal loan, you can submit a loan application face- to- face at various banks and financial institutions or apply for a personal loan online. In online personal loan, the main advantage is that you can make the application over the internet anytime and from anywhere.

 

Hiring in online credit malls like Bom Pra Credit is even more convenient! The Good to Credit offers in addition to all the convenience of online application, the more chance of approval. That’s because with only a single registration, your request is potentially forwarded to multiple financial institutions at the same time.

 

Cheapest Personal Loan

To get a cheaper personal loan, it is recommended to seek two or more proposals. So, you can evaluate the interest and the installments that fit in your pocket. Before hiring, put everything in the tip of the pencil: the amount requested, the interest that will be charged, the total amount of the loan and the installments. The use of online credit shopping makes this research and evaluation much easier. Evaluate long-term debt, not just installments. Check out more tips on how to get a cheaper loan.

 

Do I need to pay anything to get a loan?

Make any payment to get your personal loan. Stay alert and distrust of ads and companies that offer easy loan or loan to negatives with very low interest rates. Immediately close the negotiation if you request any type of advance payment, even if it is for guarantee or guarantor. Learn how not to fall in the scams of loans over the internet.

What is credit analysis?

When a friend borrows something from you, such as a book, a clothing, or even a buck, you expect to get it back, will not you? However, there is no guarantee that this will happen. You simply evaluate who is asking and, if you have positive points, you end up borrowing what you have been asked for.

 

When you receive a personal loan application, banks and financial institutions do not know you. Therefore, financial institutions look for alternatives to know more about you, which is called credit analysis. Understand how the personal credit analysis is done.

 

Personal credit analysis has five phases:

  •        Request for cadastral data;
  •        Analysis of restrictions on your behalf;
  •        Analysis of credit profile including credit score;
  •        Analysis of the commitment of their income;
  •        Analysis of your documents.

 

Personal loan agreement

To avoid future problems, read all the information in the personal loan agreement. If you do not understand a clause, do not sign. First, find the answers to all your questions. When you sign a contract, you agree to all of the conditions described in the document.

 

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

Net value of the personal loan, that is, the amount you will receive;

 

CET (Total Cost Effective): total cost of the loan in annual interest rate format, including all fees, charges and taxes.

 

IOF (Tax on Financial Transactions);

Installment: quantity and value of installments and interest rate;

Form of payment of the installments (debit in account, ticket or pre-dated check).

 

Personal loan: payment options

The payment of the personal loan can be made in three ways: (1) registration in the automatic debit, in which the installments will be deducted monthly in your checking account; (2) bolete bandari, in which payments should be made monthly at ATMs or attendance, lottery and even in the bank App on your smartphone; (3) pre-dated check, where checks must be completed with the payment date of each installment and delivered to the bank or financial institution. Find out what the personal loan rules are with pre-dated check.

 

Pay the installments of your loan 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” throughout the financial system and, as a return, will have an easier time to acquire credit, such as a loan, financing, such as cars and appliances, credit cards or even the purchase of the house own.

 

Can I exchange a loan?

Anyone who already owns 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 have this intention, contact your bank and request a consolidated debt, which should include information on interest rate, balance due and contract number. As a rule, the bank has up to one business day to pass all the information. The portability of credit is guaranteed by Resolution No. 4,292 of the National Monetary Council.

 

Is it possible to repay a loan in advance?

If you have got enough money to pay off your personal loan and if this amount will not be lacking in the coming months, you can carry out the discharge of your loan in advance. Thus, you save the amount of interest that would be charged in the next installments. Understand how prepayment of the personal loan works.