Here’s how to compare loan types and choose yours

Getting a loan is a very important decision that must be looked upon with great responsibility. That’s why we at Low Interest list the types of loans that exist and what you should consider when choosing.

What kind of loans can I get?

What kind of loans can I get?

Currently there are two available credit types on the market: the payroll and personal. Regardless of the type of loan, it is important to consider your income as it is from it that you will pay off the loan amount.

Payroll loan

Payroll loan

Payroll-deductible loans are the most popular alternative, and the interest rates applied upon the annual correction are always lower than in most cases. However, if you intend to make a loan, you should know that in this mode, the amount of the installments is debited automatically and with the salary received by the contractor every month until the end of the contract.

In a way, this ensures a certain security in the borrowing of both the bank and the loan applicant. The fact is that while you are working in such a company, installment payments are made automatically, with minimal risk to the bank and institutions. Always comparing loans and rates included should be focused as the main criterion.

Personal loan

Personal loan

This other type of loan is also a great credit opportunity available on the market. This loan option should also be very well compared and evaluated before signing the contract. In this case, the rates are more diverse and end up varying according to the amount borrowed and the line of credit that fits the customer profile.

Compare the loans

Compare the loans

It is crucial that the value of the installments and the dates on which they are mature are in accordance with carefully planned family planning. It is therefore very important to take into account the peculiarities of each operation. In cases of installation arrears the interest ends up being exorbitant within the reality of the contractor. Be aware that the interest charged by financial institutions is much higher than the amount received at the time of the loan.

Being aware of this is more than fundamental to compare loans. The tax burdens included in the credits released by the institutions are somewhat abusive and should be annualized in the short, medium and long term by an individual or legal entity seeking such a loan. Ideally, you should talk to your bank manager before finalizing a contract.

Watch out for the parcels

Watch out for the parcels

It is very important to be aware of the amount and amount of the repayments on your loan. It is therefore interesting to have a real sense of your financial situation, as it is ideal that you repay your loan without causing financial problems.