Whether you apply online or at an agency, you always have to consider some factors. In the first place are the interest, but also the commissions, the payment period, the effort rate of home loans and personal loans and also the approval criteria must be considered.
To find out how to compare all banks and make the best choice, we will now explain everything you need to know about bank loans.
What Is A Bank Loan?
A bank loan is a loan where you borrow money from the bank. You will then have to return that amount, plus interest, through the payment of monthly installments during a contracted period.
Loan or credit is precisely the same thing, and there are several options available. This is the case of a personal bank loan, a home loan, financing for studies and training or a bank loan for works.
What Loans Are There?
There are two types of bank loan:
Consumer credit – These are loans of smaller amounts (normally up to €50,000), which include personal loans, car loans and other similar types of credit; The best-known offers in this area in Portugal are Cetelem Personal Credit and Cofidis Personal Credit ;
Mortgage Credit – This includes financing for the purchase of houses and land, as well as housing loans for the construction of properties.
How Does The Personal Bank Loan Work?
The personal bank loan, or personal credit, is fast and simple financing to obtain, in which you can deal with everything online. They are available for different purposes, with maximum maturities of 7 years or 10 years and amounts that do not usually exceed €50,000.
The great advantage of the personal loan is that it can be done without collateral. In other words, you don't need to take out a mortgage on your house or other properties for bank financing to be approved.
And How Do Home Loans Work?
Mortgage credit, or home loan, has other rules and deadlines. For example, you have to provide guarantees, such as the mortgage on the property , payment terms can reach 40 years and loan amounts are higher.
You can choose between fixed rate credit (interest always constant) or variable rate (interest indexed to Euribor). In addition, it can have a mixed rate, in which it has fixed interest for part of the amortization period and then variable interest.
Can You Apply For A Business Bank Loan?
Bank loans can be applied for on a personal basis or as financing for companies. In this case, there are different requirements and analysis criteria for approval, but this financing is also available for companies.
Is The Credit Card A Loan?
Yes and no… In other words, whenever you use your credit card you are borrowing money from the bank, but it works in different ways. For example, you can have a credit card and, paying the limit used for up to 60 days, you won't have to pay interest.
However, if you use it regularly and the credit card limit is exhausted, the payment is similar to that of loans. That is, you pay the outstanding amount plus interest. The difference is that it is not a loan with a fixed amount and constant monthly installments for a previously defined period.
How Is The Personal Bank Loan Calculated?
The payment of a personal bank loan is made by adding the requested amount with the interest. And, in this field, you should look at the APR instead of the TAN, as the Global Effective Annual Rate tells you the interest with all credit charges.
The lower the APR, the lower the interest on your bank loan. Through the FIN you can check which rate is applied, and also the MTIC (Total Amount Imputed to the Consumer), which indicates the total amount you will pay for your credit (money requested + interest).
How To See The Best Bank Loan Rate?
To find the lowest rate, you should compare the proposals of all banks. And, as we explained, you should look at the APR, as it indicates how much you pay in full with interest and charges.
How To Compare Bank Loans?
To compare all credits you should use a personal loan simulator . That way, in just one minute, you'll be able to find out about all the conditions, interest rates and monthly installments that each bank asks for on your credit.
What Happens After The Simulation?
After the simulation, your request is analyzed by the banks. And, based on data such as your salary, employment status and amount of current credits, pre-approval of the loan is made.
Then you have to provide the supporting documents required by the bank (personal documents, proof of income and bank information), for the application to be analyzed and receive credit approval.
After all this process you receive the OK from the bank. At that moment, the money is transferred to your account, normally available within 24h to 48h.
Get The Best Bank Loan
If you are looking for financing, personal credit simulation is the solution to finding the best bank loan. Access the simulator now and, in less than a minute, find out which are the best proposals.
Then you can handle the entire process online, to get a quick and 100% secure loan. Getting the best financing is simple and you only need to follow these three steps: Simulate, Compare and Save!
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