I’m going to ask for a loan or a personal credit, what do I have to take into account?
When applying for a loan, either fast or a traditional bank loan, we will look at some key points that will indicate the best product. First, we will have to define our financial situation and, from here, opt for one offer or another:
What is a loan? And a personal loan?
Let’s start by clarifying terms: all loans that are not mortgages are personal loans. According to market needs, entities have focused private loans in one direction or another: loans to study, to buy a car, to go on vacation, etc. But in general terms, they are essentially the same regardless of purpose.
What is a “traditional” loan and a quick loan?
Traditional bank loans are characterized by: offering large amounts of personal loans (around € 30,000), having more competitive interests (around 7% -10% APR), being associated with a product (minimum payroll), carrying associates other mandatory products (such as insurance) and suppose high requirements for their achievement, among others. We request these loans in large banks that normally take weeks to provide a response (after carrying out different risk studies). There are other possible commissions: opening, cancellation, studies, etc.
Fast loans are characterized by: offering smaller amounts (around € 10,000), having higher interest rates (between 9% and 20% APR), not being associated with any product (without changing banks), without having to hire products additional requirements or meet too many requirements (in some cases the applicant may be in the Financial Credit Institutions). The biggest advantages are undoubtedly the immediate response to the loan request and the transfer of money in less than 24 hours (if agreed by both parties). There are usually no additional fees and the entire process is carried out online.
To the point, how much will I have to pay?
APR (Equivalent Annual Rate) : we apply this interest to the total amount of money requested. It includes absolutely all the expenses derived from credit: management, administration, bank interest, etc. The APR can be fixed (stays the same throughout the life of the contract) or variable, referenced to some index (this APR is more typical of mortgage loans).
Opening commission, commission for partial amortization and / or commission for total early cancellation.
Additional insurance : in case you have to hire some compulsory or voluntary insurance.
How much money can I ask for? Do I need an endorsement?
The amount to request is usually around € 2,000 and € 30,000. No mortgage guarantee is required because: we guarantee our solvency to repay the loan through all our personal assets, current and future. Therefore, we do not have to present any address as collateral.
In case of non-payment can you garnish me?
Yes. As described in the previous point, we guarantee personal loans with all our personal assets, current and future. Thus, in a hypothetical case of default, our personal assets could be seized.