Before applying for a loan in the market, it is necessary to analyze all the modalities offered by the various banks and financial institutions.That is, as there are several possibilities of hiring, some people have doubts as to the characteristics of each one and in relation to the advantages and conditions offered.
Revolving credit card
The revolving credit works when the consumer uses a credit card during the month, but on the due date of the invoice makes only the minimum payment or other value less than the total of the ticket. In this way, he will be indirectly requesting a loan from the card issuing bank, which will pay off the remaining amount of his invoice. But in the following month the unpaid amount will be included in the borrower’s invoice with accrued interest.
Different than many people think, overdraft is not part of the bank balance, it is a pre-approved limit that the bank makes available to an account holder. If it is used, the account of the borrower will be “in the red” and when a new deposit occurs, the bank will debit the amount of the loan taken through the overdraft, along with the interest rates related to the period of use.
Personal loan with guarantee
A secured personal loan occurs when the borrower requests a loan from a bank or a financial institution and offers a good as collateral for the repayment of the debt. Generally, the amount granted to the borrower amounts to approximately 50% to 90% of the value of the asset presented.
A secured personal loan offers low interest rates compared to other loan modalities. However, if the borrower delays the payment or does not remove the full amount of the debt, the bank may claim ownership of the good presented as collateral.
Unsecured Personal Loan
Unlike a secured loan, in the unsecured personal loan the borrower does not need to present any asset and nor guarantor / guarantor to get the grant of credit. However, as banks and financial institutions have no guarantee that the debt will be paid off there is a more careful credit analysis . In addition, interest rates will be higher, as the risk of the operation is greater for the bank.
Features of the unsecured loan:
- Available to anyone who passes the credit assessment.
- Payment term in up to 180 months.
- Average interest rate: 10% per month.
Public employees, retirees and pensioners of the INSS can apply for a paycheck-deductible loan because they have an uninterrupted fixed income .
Unlike other types of personal credit, the payment of payroll installments is automatically charged to the borrower’s monthly income. In this way, banks and financial institutions have greater assurance that the debt will be fully paid off. As a result, therefore, the default rate is much lower compared to other types of personal credit.
In a way, payroll deductible credit is also an unsecured personal loan. That is, the borrower does not need guarantor nor offer any good in guarantee. But it is a much more attractive modality.