If you are looking for a loan for the first time you may have no idea what to take into consideration when deciding where to close business. Many people are unaware of what a good interest rate is and also do not know what other charges are charged on the loan installments.
What is a good interest rate (and what is the difference of CET)
Is it possible that you have seen a particular bank saying it has rates from 3%, for example, but stopped to look at whether this was the CET (Total Effective Cost) of the operation, or whether it was just the interest rate? In addition, it is necessary to know if the institution in question offers that rate for you, as there may be differences according to the credit analysis.
Therefore, when figuring out where they are offering you a good rate of interest, you need to consider the exact rate offered after your credit analysis. But do not worry, you do not have to make an order in every institution in the country, only to find out which one is best.
In order to compare the rates of the institutions, it is possible to use data offered by the Central Bank of Brazil. On the agency’s website it is possible to find out the average rate offered by each institution in a given period of time. By comparing the average rates for the same type of credit, you can make a filter so that you can start asking for your credit analysis.
When comparing the offers received from each institution, see if they are informing you of your interest rate or the CET of the operation, which already includes all fees and charges of the operation. When you compare CET between institutions you can figure out where you will actually pay less for credit. And this holds true for both personal credit and other financing.
What makes the interest rate / CET vary?
In addition to the bank’s own policy regarding interest and fees, the Total Effective Cost of a personal loan or even a vehicle financing, for example, varies according to the customer’s credit analysis and the payment option made.
Therefore, when comparing the rate offered between two or more institutions, it is important to consider the same data and the same conditions of payment (value and number of parcels)