Description

Personal loan. Technical definition. The personal loan is the contract through which a financial entity (lender) advances an amount of money to another (borrower), with the obligation to repay said advance, as well as the previously agreed interests and the possible expenses incurred by said operation. Personal loans are those that are also known as consumer loans. These are offered by banks to citizens, with the objective of this being to be able to acquire any good or service that may be required. Personal loans, as we said, advance the capital to the borrower, having the obligation to return said capital to the lender, as well as the interest generated by the loan granted. Consumer loans, in general, have a higher interest rate, as well as a lower amount. This is because they are loans that present a higher risk of delinquency. Types of personal loans Among the types of personal loans that exist, the following relationship should be highlighted: Consumer loan. Quick loans. Student loan. Microloan. Characteristics of personal loans The main characteristics of a personal loan are the following: The principal does not usually exceed 30,000 euros. They are not usually linked to bank guarantees, or large guarantees. They are granted by commercial banking entities. They are tied to a higher interest rate. Its purpose is to acquire goods such as a car or a computer. The personal loan, almost always, is destined for consumption. The return period is usually short / medium term. It is usually linked to opening and cancellation commissions. Where to apply for a personal loan Personal loans can be requested at any bank. Regardless of whether you are a client or not, a person who meets the requirements set forth by the bank can apply for a personal loan, as well as submitting the documentation required by the staff who will carry out the study. However, there are many other companies, which we call financial, that are dedicated to the delivery of personal loans, offering significantly lower demands than those required by the market. This is because these companies charge these clients a much higher interest rate than in a financial company; even without being a customer. Reasons to apply for a personal loan Among the reasons for requesting a personal loan, we could highlight many and very varied. However, the request for a personal loan is usually made for the purchase of a vehicle, a home renovation, the purchase of a computer, the payment of a child's communion, as well as a wedding, the payment of studies of the daughter, among other reasons. In short, we are talking about a type of loan that is intended to pay for goods and services of moderate cost. Requirements to apply for a personal loan Among the requirements to apply for a personal loan are the following: Usually being of legal age. Be a customer of a bank. Budget or pro forma invoice of the product or service that you wish to acquire with the loan. Patrimonial relationship. Or, in other words, what is known as a statement of assets. Statement of past income. Demonstrate solvency, through a guarantee or income that demonstrates the ability to pay to meet said loan. Comply with the conditions required by the bank. A certain interest rate must be agreed with the entity. The opening commissions and, if any, the study commissions must be paid.