The loan consists of carrying out an operation where a bank or financial entity puts at our disposal a sum of money from a previous contract with established clauses.
With this signed agreement, one commits to return the money that has been granted to him in the previously agreed term and paying the commissions and interests stipulated on the paper that will have been negotiated previously.
Normally payments are made in the form of monthly installments although there are different options to do so. There are entities in which you can agree on the type of amortization, these can be: the same monthly payments until the full payment has been made, has and the option of ascending, in which case you start paying a lower amount than the one you will end up finally paying, the fees increase as you repay the entire loan and finally the opposite option, the declining one, with which you start paying higher fees and each month they are progressively reduced.
Loan will be repaid even if the borrower does not
The guarantee is like the insurance that said loan will be repaid even if the borrower does not meet his monthly payments, it is usually requested to offer security payment against the client’s inability to comply with the agreed treatment. Given the risk, it is established through this procedure that the financial company does not lose and even earn more if the contract is broken. This is done through a property or something of material value, if you do not own anything you can ask that another person with equity or money in a bank account, can answer if we do not.
On the other hand, there is a great variety of loan types to apply for, with different characteristics and different requirements, for example there are consumer loans that would be requested to buy a vehicle, appliances, some furniture, they are not much. There are also for renovations, debt consolidation, special for weddings or trips, among others.
In order not to be mistaken
We must compare the entities when applying for an online loan since not all of them offer the same advantages for each specific type of loans, we must especially advise the APR (Annual Equivalent Rate), which is the figure that helps us Determining the interest for each year that we want to extend the loan repayment period, is a percentage that allows us to know the real price that our request will have, although it should be taken as a reference since it will vary over the years as they are updated interest rates and are more useful in loans or mortgages with fixed interest, not variable.