The 9 characteristics of the loans
The main characteristics that you should take into account of the loans and credits are these nine:
The type of loan, since there are different varieties: personal, pre-granted, line of credit, etc.
Its purpose (reform, buying a car...) that can determine the rest of the characteristics of the credit
The amount. It is common for loans to offer a minimum and maximum amount for granting
The term, which is the time during which we will be repaying the amount of the credit
Loan interest reflects how much we will pay in total
The commissions that they can charge us for management or study, for example
The links that the entity requires us to lower interest, such as domiciling a payroll
The monthly installment to be paid during the term of the loan
The total to pay, which reflects the real cost of the credit (money requested plus interest)
Where can I request a loan?
Generally, you can request credits and loans in the following types of entities:
Banks: they are the most common option to obtain loans and credits, especially in the entity of which you are already a client.
Private equity companies. Private entities can basically grant you six types of financing: mini loans, quick loans (granted in a few hours), personal loans with characteristics very similar to bank loans, loans with a mortgage guarantee of up to 300,000 dollars, lines of credit and for Business.
Non-financial companies. These are companies that sell products with high prices, such as cars, mobile phones, household appliances, etc. and that allow you to finance your products directly in the store.
Crowdlending platforms. Digital platforms that put people in need of credit in contact with investors who want to make their savings profitable through P2P loans. In Spain they have not been particularly successful and are a type of residual financing.
What is the loan repayment term?
Generally, a consumer loan has an average repayment term of between 1 and 8 years, although there are some that reach up to 10. However, it is not advisable to extend the repayment term of a loan too much, since this will cause them to generate interest for a longer time and, therefore, you will end up paying an extra cost.
In addition, it is important to take into account that the time it takes to repay a loan is not greater than the useful life of the product to be financed, since otherwise you could be paying for a product that you no longer use.
The main characteristics that you should take into account of the loans and credits are these nine:
The type of loan, since there are different varieties: personal, pre-granted, line of credit, etc.
Its purpose (reform, buying a car...) that can determine the rest of the characteristics of the credit
The amount. It is common for loans to offer a minimum and maximum amount for granting
The term, which is the time during which we will be repaying the amount of the credit
Loan interest reflects how much we will pay in total
The commissions that they can charge us for management or study, for example
The links that the entity requires us to lower interest, such as domiciling a payroll
The monthly installment to be paid during the term of the loan
The total to pay, which reflects the real cost of the credit (money requested plus interest)
Where can I request a loan?
Generally, you can request credits and loans in the following types of entities:
Banks: they are the most common option to obtain loans and credits, especially in the entity of which you are already a client.
Private equity companies. Private entities can basically grant you six types of financing: mini loans, quick loans (granted in a few hours), personal loans with characteristics very similar to bank loans, loans with a mortgage guarantee of up to 300,000 dollars, lines of credit and for Business.
Non-financial companies. These are companies that sell products with high prices, such as cars, mobile phones, household appliances, etc. and that allow you to finance your products directly in the store.
Crowdlending platforms. Digital platforms that put people in need of credit in contact with investors who want to make their savings profitable through P2P loans. In Spain they have not been particularly successful and are a type of residual financing.
What is the loan repayment term?
Generally, a consumer loan has an average repayment term of between 1 and 8 years, although there are some that reach up to 10. However, it is not advisable to extend the repayment term of a loan too much, since this will cause them to generate interest for a longer time and, therefore, you will end up paying an extra cost.
In addition, it is important to take into account that the time it takes to repay a loan is not greater than the useful life of the product to be financed, since otherwise you could be paying for a product that you no longer use.
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