If you are looking for a personal loan , you are interested in what we have for you. We are going to analyze what exactly they are and we are going to explain what you have to take into account to avoid being deceived and, incidentally, to obtain the most favorable conditions. Let's see it!
Differences between loan and credit
Many people and companies, when they talk about loans, are referring to credits and vice versa. Therefore, we must clearly differentiate what is a loan from a credit .
Loan is the use of money that is received in its entirety and on the first day once the operation is signed in exchange for the payment of interest and that must be returned on a fixed date. The refund can be made on a monthly, quarterly, semi-annual, annual or total basis at maturity. Normally, in personal loans, interest is included in the fee.
Credit is the obtaining of funds up to a certain amount in exchange for certain interests and commissions, up to a date also determined for their return. In the agreed time, the borrower can make use of the credit at his convenience, paying only interest of the amount available and for the days used.
There are many types of personal loans , depending on our needs or the use that we are going to give the money: to buy furniture, vehicles, appliances and also for trips, studies, communions, weddings, etc.
There are many companies and financial entities dedicated to offering loans . These loans can be requested by going to a bank office, by phone or via the internet. Every day we see and hear commercials on television, radio or on the Internet.
To find these loans, it is enough to visit a bank, call a finance company or through the different web pages of the entities that are dedicated to granting loans. On these pages we can calculate, by entering the desired amount and the return period, the fee that we would have to pay.
Once this is known, the operation can be requested. These online requests usually have a quick response from the company.
What exactly are personal loans?
Personal loans are granted to natural persons in order to cover different needs . They are usually requested to acquire goods such as vehicles, appliances, furniture, etc. Also for weddings, communions, trips or studies (master).
These loans are formalized through a contract whereby the company or financial entity, called the lender , advances an amount of money (principal) to another person called the borrower , with the obligation to return the principal within a specified period and in turn pay the interests, commissions and other agreed expenses derived from the operation.
Personal loans are normally calculated so that their repayment is monthly. The resulting fee includes capital and interest. Commissions, both for opening and study, are usually paid at the beginning of the operation. Rather, they are deducted from the principal when repaying the loan. Some amortization insurance will also be included, which will be paid in full at the beginning or will be prorated on a monthly basis.
Depending on the amount requested and the documentation provided, it may be that, if there is any doubt as to repayment capacity or solvency, some type of guarantee is required. In that case, it will be necessary to look for a person, a family member or friend, capable of guaranteeing the fulfillment of the operation.
What types of personal loans are there?
There are a wide variety of loans and all adapted to our needs . These loans, from the moment they are requested, need a study period by the lender. Depending on the amount and term, they can be more or less agile in the approval decision.
If all the requested information is provided quickly, the resolution can be obtained earlier. The entities usually ask for the study of the operation that we justify the purpose to which that money is going to be allocated.
They can also ask us for the latest payroll or income statement to check our ability to repay; see if we get enough income to meet our payment obligations.
If the lender had doubts as to the borrower's repayment capacity, it could request some type of guarantee. Normally, they usually request that another person, either a family member or friend, guarantee the payment in case of doubt, the return of the borrowed money.
We have to be very clear that when we guarantee we put all our assets, money, real estate, etc., guaranteeing that operation. In other words, if the borrower did not pay, the guarantor would have to pay and if he did not, the entity could resort to seizing accounts and properties.
Quick personal loans
They are those loans in which the amount of money to be lent is low and some flexibility can be achieved in the repayment of the amount borrowed, which is why they usually have higher interest and commissions.
These loans are for people who are urgent to get the money. And they are called fast because of the speed that the entity solves the operation. Generally, the study of the operation does not last more than a few hours, or even minutes in some cases.
The same happens with the deposit of money in our checking account once the loan is approved. In a few hours we will have the money at our disposal and, in cases where we have an account in the same entity with which the fast loan company works, we will be able to have our money in a few minutes .
Personal loans without payroll
Loans that are granted to people who lack a payroll, such as the unemployed, pensioners or the self-employed . The loan amount is usually small, over € 300 and at a high cost. These are usually returned within approximately 30 days.
Even if we do not have a payroll, it is very likely that the company that grants the loan will ask us for some kind of justification that we have recurring income, such as the pension in the case of retirees, the unemployment benefit in the case of the unemployed or quarterly VAT invoices and declarations in the case of the self-employed.
Personal loans without collateral
To guarantee is to guarantee someone before third parties. A personal loan without collateral is one that is granted to a person without the need for another to guarantee the fulfillment of that payment obligation . This is usually because the borrower can demonstrate that they are creditworthy and generate enough money to repay the requested amount plus interest within the predetermined period.
The guarantor is the person who puts all their assets at stake when signing an operation guaranteeing its fulfillment. This is responsible for paying the debt if the borrower fails to do so.
Online personal loans
They are those that can be requested and obtained without the need to go to a financial institution. The management of these is done directly online .
There are many companies dedicated to granting loans that work only online. To these we must add that traditional financial institutions are increasingly looking at the online world, because there are already some of them that allow you to contract certain types of loans over the internet.
Requesting and contracting an online loan allows us to access many entities with this operation. The resolution of these loans is usually quick by the lender and less demanding for their formalization . Management is also usually simple and very agile, because the procedures are not complex.
Once the loan is granted, the money is transferred to our bank account, generally in a few days and hours, depending on the amount of the loan. In addition, many of these entities grant loans by asking for very little documentation from the person requesting the loan and they work with almost no need to fill out paperwork .
Most of the companies that offer their services online are less demanding in terms of the requirements that the borrower has to meet in order to be granted the loan.
So, if, for example, our name in the ASNEF defaulter registry, or we want to request an urgent loan without providing guarantees, it is most likely that we will have to hire it online, since it is very unlikely that traditional financial entities grant loans to people who appear in ASNEF, or any other type of loan traditionally considered high risk for the entity.
Do i need a personal loan?
There are certain factors to take into account before applying for a loan of any type, in this case we are talking about a personal loan.
First of all, we have to be clear about our financial situation . We must be very cold and cautious before requesting anything. We must be clear about our employment situation, work, type of contract, the income we currently obtain and our future situation.
It is very important to know how much our fixed expenses, electricity, water, community, gas, schools, food, etc. And also other financial obligations if they exist.
Once we are clear about this, we will know if we can face the operation that we want to request. Failure to comply with some of the fees will cause our expenses to increase due to the payment of commissions, called non-payment fees or delinquency fees.
It is very important to request only the money that we really need . Sometimes we think that if we increase the loan a little we can afford a whim, that is a mistake. That may cause you a problem later when it comes to meeting the quota.
Another factor to take into account is the total cost of the loan, knowing what the APR (Annual Equivalent Rate) is, which includes interest and other commissions.
Other expenses would be, if the loan is granted by a bank, amortization insurance, cards, etc. This would be a sum and on.
If we request the loan from another lender, we will take into account the characteristics, depending on whether it is a quick loan, a loan without payroll, without guarantees or without guarantees. All these may be much more expensive for the conditions.
When you need a personal loan you have two options, go directly to a bank or request it online.
If you go to a bank to request your loan, you have to become a client by opening an account. Next you will have to direct your payroll and receipts. You will have to say what you want the loan for, the purpose.
If they see that it is consistent, they will ask you for the latest payroll, income statement or any other document that justifies your income. This is essential to analyze the loan operation, to know with the income that you have to be able to face the payment of the installments.
In addition, they will ask you to prove your solvency, it is almost always to know if you have any property in order to be able to seize if necessary. With all this documentation they will study the loan operation. If you do not have enough guarantees, they will ask for guarantors or a mortgage guarantee.
As for the guarantors, it has been indicated above, that they will be the ones who run with the payment obligation if you cannot. These to be guarantors also have to justify their income and solvency.
Apart from going to a bank, you can request the personal loan online. Via online it will be less complicated since the demands will be lower. In certain cases you will not have to provide almost documentation, in some cases even with ASNEF they could grant it to you. Of course with a much faster response to your request and all without leaving home.
Processing an online loan is easy, fast and very simple . There are already some forms that must be completed, which you can easily find, from different lenders. The loan study is done quickly and you can get the answer briefly, just in a few minutes. If they approve the loan they will make the deposit to your account of the entity that is.
How to find the best personal loan online?
First of all, you have to know what we need and what we want it for . See which one best suits our needs.
To find the best loan we will only have to type in Google "How do I apply for an online loan" or simply "online loans", from there several websites will appear with a simulator offering us their products. We can choose according to our need. There are loans whose amount ranges from € 300 to € 60,000 depending on the lender.
In small quantities, the concession is easier and faster due to the lower requirements.
All these web pages have their simulators so that we can calculate the fee. The fees will vary according to the amount and time of refund requested.
There are many of these pages to search for online loans that help us find the one that best suits our needs. This is what we call loan finders and comparators. They make it easier for us to find the best loans online and buy all the conditions very quickly with the other websites.
Should you use personal loan comparators or search engines?
It is very important to be able to use online personal loan comparators and search engines. They are a tool that greatly facilitates our work. With them we can find the loan that best suits our needs. These work tools are very advantageous and very useful .
Loan buyers are web pages that are dedicated to bringing together all the information, characteristics, requirements, etc. that appear on the different web pages of the entities that offer loans, to later present it all together and in a visual and simple way on a single web page.
This makes our work much easier, since they do a large part of the loan search work for us. They allow us to compare the different loans offered in a quick and easy to understand way .
In addition, online loan comparators give us the opportunity to filter the search results depending on the characteristics of the loan that we want to hire and the personal needs that we have at that time. This allows us to focus our comparison only on those loans that adapt to what we are looking for, without wasting time discarding other alternatives.
But perhaps the best thing about comparators is that they show us the information in a homogeneous way . It is tremendously frequent that the different financial entities that offer their loans online use different terms or expressions to refer to the same thing.
It may also be the case that the information on the characteristics of the loans is presented in a cumbersome or difficult way.
Thus, what comparators do is to standardize all that information and present it to us in the same terms and with the same format for all the alternatives on the market, allowing us to compare the different loans and the different entities in a simple way.
Are these loan comparators reliable?
That comparators have a large number of advantages and that they make life much easier for us is one thing that is crystal clear. However, some of them are not perfect and in some cases very improvable. That is, not all loan comparators are reliable .
While comparators are a useful tool, they may be limited in terms of information, making the information they show us incomplete .
The comparators are after all a business, they are not usually an altruistic website that someone makes for the love of art. In addition, maintaining them has a cost. Thus, it may be the case that we find comparators that only offer information about those companies or entities that pay them some type of fee or commission for appearing in it.
However, the amount of money that companies can pay to appear in the comparator should not be very large, since what interests a comparator is to be the best of all those who exist and for that they need to present many good alternatives, which in turn, they allow you to have many visits and obtain many positive recommendations from users.
Therefore, we should not over-trust those comparators in which we are presented with few loan alternatives to compare. The lower the number of loans that appear in the comparator, the lower its reliability, which makes it unlikely that we are choosing the best loan on the market or the one that best suits our needs at that time.
We must also be careful with comparators that may be outdated. Every day new companies appear dedicated to giving loans of all kinds, which considerably increases competition in the sector. This fact causes entities to frequently change their offers or present new ones.
Due to the above, it is highly recommended that once we have decided which loan we are going to hire, we go to the website of the company or financial institution offering the loan and check that all the data that appear in the comparator are correct. .
In short, the most appropriate thing is that we visit and consult several comparators , since, if we trust the first one we consult, we may not have the most up-to-date information possible or we are missing some of the alternatives that are in the market at that time .
In any case, loan search engines and comparators are very useful , as they allow us to find all the necessary information about the loan we are looking for. They are a great time saver and make us find a solution in the simplest and simplest way.
What are the best entities to obtain personal loans?
There are many companies and financial entities dedicated to managing financial products. In the case of personal loans, we will have to take into account several factors when choosing one or another company to request a loan.
To start, we have to know our needs. We must be clear about what we want. Applying for a loan is making an important decision . First of all, what we must do is analyze our situation. How are we on the labor issue? Do we have a work contract? Is it fixed or temporary? For how long?
Regarding income and expenses, we will also have to ask ourselves a series of questions. Is the salary we receive enough to pay the fees? But you don't just have to think about the amount of the fee. What about fixed family expenses such as electricity, water or children's school bills, if we have them?
It is very important that we ask only for the money necessary to meet our need . There is no temptation to ask for more for superfluous expenses, travel expenses or any other whim. All this will make the loan more expensive, the installment to rise and in the end it will cost us more work to face the payments.
Once the above has been analyzed, we will look for a loan that is the ideal one for us and that is the one that best adapts to meet the need we have. That is, that the purpose is correct and adequate, because it will depend on what it costs us more or less, since many financial institutions have different types of loans depending on what it is requested for.
There are a huge number of loans that are offered every day in the market, so we have to search among the ones that best suit our needs and buy to find the best one for us.
It may be the case that the financial entity with which you usually work, or another entity that on another occasion granted us a loan, right now are not the best entities to apply for a loan again, either because our personal situation has changed, or because the conditions offered by these entities are not the best currently.
The entities that offer their loans online, except in rare cases, usually require less information than a bank and their procedures are simpler. Once the loan application has been analyzed and approved, the amount is transferred to your bank account in a few hours or even minutes. Which comes in handy for loans that we need with extreme urgency.
Our main objective when hiring a loan is to find the loan that best meets our needs and does so with the greatest facilities we can find to return the money and at the lowest possible cost.
To select a loan, our way of acting does not differ from what we do when we believe that our gas company is very expensive and we value changing to another company.
In the same way that we visit the web pages or offices of these companies in search of the best offer based on the consumption of gas that we have, we have to search among the various companies or financial entities that are dedicated to granting loans until we find the one that grants us the best personal loan.
Thus, the best way to find the best personal loan is to search and compare all the alternatives on the market . It is something that takes time, but it is necessary to do this work, since only in this way will we find the best personal loan to cover the need we have.
The truth is that, if they granted us a loan at 0% and without commissions it would be the ideal thing, but that is impossible. Financial entities are stores to buy and sell money and their business is based on making the more money the better. That is why we must be cautious when choosing and looking after our interests .
So, now you see, if you were thinking of acquiring a personal loan , your best option is to follow the advice that we have given in this guide. In this way, you will be sure that you are not deceived and that you get the best conditions. Can you think of something better? Tell us about your experience!