When it comes to borrowing, most people shudder when deciphering the word interest, but they are also unaware of the advantages of this type of credit as well as reducing those interest rates. Thinking about this, in this article we will explain how the loan interest works and how to close the best deal.
Personal loans can have high interest rates
However, they present themselves as an alternative to the credit market that does not contain so much bureaucracy to get such money.
However, this facility also brings high levels of defaults in the national framework, being one of the main reasons for indebtedness of the Brazilian.
How are interest calculated and allocated?
Interest is defined by the company, but usually these rates are between 1% and 23%, with stores and financial institutions having the highest percentages, as they do not ask for so much documentation for credit analysis. Usually the loan can be split up to 48 times.
In all cases you need to research hard which companies offer the best deals before closing any deal, and of course, knowing which option is right for your case.
Can I get lower interest rates?
There are some modalities that have lower interest rates, and we will present them.
– Payroll loans
Paycheck credit is a modality that has the lowest interest rates, and its installments are automatically debited from the debtor’s salary. Although it seems the most advantageous credit option, this model is restricted only to retirees, civil servants, employees of private companies and pensioners of the Social Security.
– Refinancing of property
It is about offering the property itself as collateral to the bank that the loan will be paid.
Another option that has lower interest is to anticipate the payment of installments, this is because there is no interest charge, a rate that increases the installments by up to 20%. However, the balance to be settled depends on the financial you are charging you.
Now it’s easy to understand, right? Want a quick, easy and safe personal loan suggestion? I assure you it’s Financial Group.