O personal loan can be a great choice for those who need money fast. It can be used in a variety of situations, from paying off debts to financing your dreams. This guide will show you how to choose the best personal loan for your needs.
Choose one personal loan requires attention. It's important to look at your credit score, as it affects the conditions of the loan. A high score can mean lower interest rates and better conditions. The Total Effective Cost (CET) is also crucial. It shows all the costs of the loan, including interest and fees.
Before you choose, compare the offers. See which financial institution has the best personal loan options for you. In this guide, we'll help you understand everything. This way, you can make a safe decision, knowing the benefits and the personal loan risks.
What is a Personal Loan?
One personal loan is a type of credit given by banks. It can be used for various things, such as buying something you really want. The good thing is that you don't have to explain what you're going to use the money for.
Definition and characteristics
This loan is easy to get and fast, the money can be in your account in one day. You can choose how long you want to pay it back. This can be from 30 to 60 days after you receive the money. Be aware, however, that interest rates can be high.
To take out the loan, the bank will see if you can pay it back later. You can do everything online, which is very practical. You can pay back the loan in up to 24 installments. However, you need to have an active credit card with Bmg.
Types of Personal Loans
There are several types of personal loans, each with its own rules. Here are a few:
- Payroll loans: These have lower interest rates because the payment is deducted directly from your salary. People between the ages of 18 and 80 can take out this loan. And it can't exceed 35% of your salary.
- Secured loan: Here, you give something of value, such as a house or car, as collateral. This way, the interest rates are lower.
- Personal loans traditional: You don't have to give anything as collateral and you can use the money as you wish. The interest can change depending on when and how you pay.
Choosing the right type of loan depends on what you need. It also depends on the conditions you can meet and the options available.
| Type | Features |
|---|---|
| Consigned | Lower interest rates, direct payment from salary, up to 35% of income, for people aged 18 to 80 |
| Guaranteed | Give an asset as collateral, lower interest rates |
| Traditional staff | Without a guarantee, free use of money, interest can change, |
Advantages and disadvantages of Personal Loans
Understanding the advantages and risks of a personal loan is very important. It helps you make informed decisions and plan your finances. This way, you can avoid unpleasant surprises in the future.
Benefits you can get
A great benefit of a personal loan is its flexibility. It can help with unexpected expenses or particular projects. Whether it's for small home repairs or to pay off high-interest debts, it could be the solution you're looking for.
Another advantage is the ease and speed with which these loans can be obtained. This is crucial in emergency situations. In addition, the chance of getting a online personal loan makes everything more practical and accessible.
Associated risks
Despite the advantages, the personal loan risks are also important. High interest rates can increase the cost of the loan. This is one of the main risks.
The impact on the applicant's financial health is also a concern. This is more serious if there is no proper planning. For example, secured loans can lead to the loss of the asset in the event of non-payment.
Revolving loans should be used with caution. Its high interest rates can easily lead to debt.
| Benefits | Risks |
|---|---|
| Flexibility for unforeseen expenses | High interest rates |
| Easy to obtain | Negative financial impact without planning |
| Convenience of online personal loan | Risk of loss of property in the event of default |
In short, personal loans can be very useful if used responsibly and with planning. It is crucial to evaluate both the benefits and the risks in order to make a good financial decision.
How interest rates work
Knowing how interest rates work on personal loans is very important. There are fixed and floating rates, and each type affects the value of the loan in a different way. To understand this better, it is essential to consider the CET, which shows all the costs of the loan.
Fixed rates vs. floating rates
Fixed rates don't change. They provide security because you know how much you will always pay back. For example, José borrowed R$1,200 with a fixed rate of 5% per month. In the first installment, he paid R$460, of which R$400 was the principal and R$60 interest.
Floating rates, on the other hand, change with the market. For example, the Selic rate influences these changes. So the installments can vary, and can be cheaper or more expensive. If someone borrows at a rate of 6% per month, the amount of interest can increase or decrease in the next installments.
The impact of CET (Total Effective Cost)
O CET is very important because it shows all the costs of the loan. It's not the same as interest rates. For example, José's loan, in addition to the rate of 5% per month, had a total cost of R$189.15. This includes various charges, such as administrative fees and insurance.
Comparing the CET between different loan options is a good strategy. Sometimes a lower interest rate, with a lower CET, can be more economical in the long run. There are loans with special conditions, such as FGTS loans, with rates starting at 1,67% per month. These details should be considered when choosing the best loan.
| Type of Loan | Interest rate (per month) | Loan amount | Deadline |
|---|---|---|---|
| Personal Loan (Generic) | 6% | R$1.000 | 12 months |
| Payroll loans | 1.2% to 2.74% | R$10,000 minimum | Up to 120 months |
| FGTS loan | 1,67% to 1,69% | R$300 to R$100.000 | Up to 7 installments of the birthday voucher |
| Personal loan (Geru) | 2% to 8.2% | R$1.000 to R$50.000 | 12 to 36 months |
Profile of the Personal Loan borrower
If you're thinking of taking out a personal loan, it's vital to know who can apply and what personal loan requirements are common. Let's dive into this subject.
Who can apply?
Anyone over the age of 18 can usually apply for a personal loan. Financial institutions look at the credit score and whether the person can pay back. Between 2010 and 2019, the personal loans in GDP rose from 19.9% to 27.8%. The share of these loans in financial portfolios grew from 45% to 58%.
The person's monthly income is also analyzed. Those earning between R$5,000 and R$10,000 have the most risky debts, 6.5%. So people with lower incomes can also get these loans, making access easier for everyone.
Common requirements for financial institutions
You personal loan requirements depend on each place, but some are general. Here are the most common:
- Minimum age 18
- Proof of income
- Proof of residence
- Personal documentation (ID, CPF)
Having a good credit score helps a lot. It can help you get better loan conditions. Lack of collateral can be a problem when getting credit; more collateral gives the bank more security.
First of all, it's a good idea to do a loan simulation. It shows you the interest rates and how to repay. This way, you can make a better choice and find the best personal loan option. With the right information, taking out a loan can be a good decision.
Documentation required to apply
To apply for a personal loan, it's important to have the right documents. This makes the process quicker and easier. We'll show you which documents you need and how to apply for a loan step by step.
Personal and financial documents
To get started, you'll need your ID, CPF and proof of where you've lived for the last 3 months. You also need to show how much you earn. Employees, pensioners and civil servants must present their last three payslips. For self-employed people, entrepreneurs and freelancers, you need to show bank statements from the last three months. You also need a certificate showing your current marital status.
Application steps
Gathering all your documents is the first step in applying for a loan. This includes personal documents, proof of income and marriage certificates, if applicable.
- Gather all the personal documents mentioned.
- Provide proof of income appropriate to your professional profile.
- Prepare recent proof of residence.
- Consider using a property as collateral. Prepare the property registration and IPTU document.
- Contact your chosen financial institution.
- Complete the application form with all the information requested.
- Send all documents to be analyzed.
- Wait for the decision on approval, values and deadlines.
The amount of personal loans varies. You can borrow from R$ 150 to R$ 30,000. The loan repayment periods range from 6 to 48 months. Interest rates start at 1.05% per month. You must be at least 18 years old to apply.
Tips for choosing the best option
When you're thinking of taking out a personal loan, it's essential to understand how to choose and apply for one. We'll give you some important tips for finding the best loan. This includes comparing offers from various financial institutions.
Comparing institutions and offers
First of all, it's crucial to compare the different institutions and what they offer. Interest rates can be very different at each one, so it's important to look at the rates and the Total Effective Cost (CET), which adds up all the costs of the loan. Having a good credit score can help you get better conditions, such as lower interest rates. Payroll loans, for example, usually have lower interest rates because the payment is deducted directly from your salary.
Ideally, the amount of the installment should not exceed 30% of your monthly salary. This helps you not to get into too much debt and avoid late payments. Joyce de Paula, a coordinator, points out that a high CET means you'll pay more for the loan, even if the interest seems low.
The importance of research and analysis
Doing good research and studying the conditions of each loan is essential. Analyzing the CET is essential as it shows the total you will pay for the loan, without being fooled by the interest rate alone. To find out more about financial institutions, the "Reclame Aqui" website can be a great tool. There, you can see reviews and avoid bad experiences.
Limiting your loan to a maximum of 30% of your income is a good rule of thumb. This prevents you from getting into more debt than you can afford.
Finally, having no previous debts can improve your chances of getting a new loan. This is because it shows institutions that you are a good payer.
| Financial Institution | Interest Rate (% per month) | CET (% per month) | Payment period (months) | Reputation on "Reclame Aqui" |
|---|---|---|---|---|
| Bank of Brazil | 2,5% | 3,0% | 12 – 36 | Great |
| Federal Savings Bank | 3,0% | 3,6% | 18 – 48 | Good |
| Bradesco | 2,8% | 3,3% | 24 – 60 | Regular |
By following these guidelines, you'll be better prepared to choose a personal loan. You'll know how to make a conscious choice that fits in your pocket.
Alternatives to Personal Loans
Personal loans are an option for those who need quick cash. But there are other alternatives that can be more advantageous. Financing It is payroll loans are some examples.
Options such as financing and payroll loans
O financing stands out for large purchases, such as cars and houses. Interest rates are usually lower than for personal loans. This is because the asset purchased serves as collateral.
O payroll loans is a type of loan with direct payroll deduction. This reduces the risk of late payments and interest rates. No payroll loansYou can only commit up to 30% of your salary to the installments. It's a safe and controlled option.
When to consider other financial solutions
Before deciding on a personal loan, see if there are any better solutions for you. Those who have money in their FGTS, for example, can use the birthday withdrawal. Banco do Brasil, Banco BV and Sim Empréstimos offer attractive rates for this.
Civil servants, salaried workers and pensioners may find payroll loans a good choice. It's important to analyze everything carefully. A well-thought-out choice helps your financial health.
For more information on loans and fees, visit the Votorantim Bank.