The secured loan ensures better interest rates, higher loan repayments and better repayment terms. If you are in need of money surely the loan is the first form of credit that comes to your head. The loan may actually be a good option for you to get those dreams off the paper or to take out some debts, or maybe even realize the dream of opening your own business.
It does not matter, applying for a loan when done wisely can rather help in times of tightening, or achieve a dream come true.
What to consider before applying for a loan?
The first point that needs to be analyzed before you apply for a loan is to know if this is indeed your last option. Because although our goal is to find the best interest rates and the best payment conditions, we are still having a question. Is it really necessary?
Defining the importance of the loan before applying for it can prevent you from eventually taking out a loan to solve a problem you might expect or that would not depend on a loan.
To do so, evaluate your real needs and consumption habits and see if you really need a loan and if that is the right time to apply for it.
Will you be able to pay for the loan?
At worst, will you be able to pay for the loan? Normally when we apply for a loan we analyze our payment terms only at the best, ie we inevitably end up in debt if any unforeseen events happen. Of course we will be doomed to do absolutely nothing if we think only of the unforeseen events, however, it is important to minimize them.
For this reason, it is better in these cases to opt for a larger number of installments, which leaves the value to be paid by the lowest applicant for unforeseen cases. Try not to commit more than 30% of your monthly income to the portion of your loan.
The smaller the commitment of your income the greater the chances that you will be able to pay off the debt even if some small unforeseen happens.
Is it the best time to save money to borrow money?
Knowing the economic sector rates ensure that you apply for your loan at the best possible time Before deciding to apply for your loan, see how the Selic rate is (the Selic rate is the basic interest rate, which determines how much the government pays for a loan).
The higher the Selic rate, the worse the time to apply for a loan. This is because the government will be paying better for the financial institutions, thus giving little money to the consumer and consequently the value of the loan ends up higher.
What is the best type of credit?
In Brazil there are three usual ways to get credit from a financial institution.
- The payroll loan,
- The personal loan
- The loan with guarantee, be it real estate or automobile.
The payroll loan
It is in fact the best credit option available. However, in order to apply for it, it is necessary to meet some basic requirements such as being employed with a formal contract (since in the paycheck loan the loan is deducted directly from the payroll of your applicant) to be retired or pensioner and the amount to be loaned can not exceed 30% of the amount received by you.
That is, with this restriction the amount to be released ends up being limited to the percentage of 30% of your income (the amount of the installments to be paid monthly can not exceed 30% of the total amount monthly received by you).
The personal loan
As an option to the consigned loan for those who do not fit the prerequisites for your request we have the personal loan. Less bureaucratic and consequently easier to obtain approval, however, the values are usually low and the interest rates higher than in other types of credit.
Some institutions release up to R $ 20,000 for loans made through personal credit. If you need a larger credit release it is indicated to look for other credit modalities.
Credit with guarantee
Lastly and a little less used in Brazil we have personal credit with guarantee or credit with guarantee. It is a form of loan where the applicant uses a property previously owned by him, to obtain lower interest rates, better payment conditions and a higher credit release. Collateralized credit is used when a higher credit release is required, some institutions, for example, release amounts in this type of credit from R $ 40,000.
With the guarantee the bank has a security for the default case – this is because it is lent to its applicant a percentage on the value of the asset used as collateral – and precisely for this reason it is not the most used credit modality in Brazil, In case of default, the asset used as guarantee may end up in the possession of the institution responsible for the release of credit.
Probably you’ve probably heard of the famous mortgages, a lot shown in the North American movies. The home mortgage is an example of secured loan. Its owner puts the house as collateral on a loaned amount to him. Normally the secured loan is called refinancing once you return to paying for the well taken out as if you had just bought it again.
It is possible to make a secured loan securing both the property and your car and each institution has its own requirements to assess the release of credit and how much can be released. Some take into account the year of manufacture, the market value and the state of conservation of the vehicle.
Loan guaranteed by Bankate
With Bankate it is possible to obtain up to 70% of the market value of the vehicle used as collateral. However, it is required that the vehicle has a maximum of five years of manufacture.
The main advantage of the loan guaranteed by Bankate is the lower interest rate in relation to other credit modalities and with a term of fifty-nine days to pay the first installment.
It is necessary that the applicant to be loaned Bankate to be able to apply for the loan with vehicle guarantee. Being an accountant you will need to look for your manager to enter the request.