Everything you need to know about bank loans

At some point in our life we ​​will need to resort to Bank loans. In fact, they are a very useful financial service if we know how to take advantage of them and they can help us pay for studies, pay for a medical emergency, buy our first car or house, etc.

Despite the fact that they are a useful financial service, it is necessary that we learn more about them so that we do not have problems later with the payment of the monthly payments or, even worse, fall on the black list of Infocorp due to delinquency.

Learn everything you need about bank loans

Bank loans

A bank loan is a financial service through which a lender offers the borrower an amount of money, which can be granted in cash or by transfer to his bank account. By lending the bank this money, the borrower agrees to return it, through monthly payments, in a specified time. The amount of the monthly payments will vary according to factors such as the total amount requested, the amount of installments set in the contract and, of course, the interest rate of the financial institution.

There are certain frequent doubts that you may have regarding bank loans, so here we answer the most common questions.

What is the purpose of taking out a bank loan?

purpose of taking out a bank loan

There may be different reasons for applying for a bank loan; However, the ideal is that it is for a really necessary cause; after all, we must bear in mind that we will have to pay commissions and interest to the bank for it.

These are some of the most common reasons why people apply for bank loans:

  • Pay for your studies or those of your children.
  • Buy a movable or immovable property.
  • Some medical emergency.
  • An unforeseen expense that is considered an emergency.
  • To invest in your own business.
  • A trip.

Interest rates to pay

When you go to choose a financial institution that lends you money, always evaluate the interest rate that it offers you. Ideally, you should compare different options. Although the TEA is important, we advise you to better compare the TCEA, since it, in addition to TEA, includes interest, commissions, insurance, etc.

Do you need a guarantee or endorsement for bank loans?

have a guarantee

The guarantee and the collateral are different terms and both do not apply to all loans. Most personal loans only request a guarantee, that is, a way for the bank to collect the loan in case the client does not comply with them. The guarantees are, for example, the present and future assets of the applicant. In the case of a guarantor, this is a person who agrees to take over the loan payment in case the borrower defaults on it.

Requirements to request a bank loan

Requirements to request a bank loan

If you are interested in applying for a bank loan, you need to know that there are a series of requirements that you must have, otherwise the banks will reject your application. The requirements are:

  • Be of legal age (the range will depend on the particular conditions of each financial institution).
  • Have a good credit history.
  • Have minimum income according to the conditions of the financial institution.
  • Present the documentation requested by the bank.

Once all the documentation and the loan application have been submitted, the bank will evaluate it to see if it approves it or not. If they do not approve it, it is likely that the amount requested will exceed your debt capacity; or that you have a bad credit rating that prevents you from processing this application.

If you have a bad credit rating, it is best to pay off your debt first so that you can rejoin the financial system. If you do not have the total money to pay off your debt, we present the program My board, through which you will begin to save a certain amount of money monthly to a protected fund of your own, with the aim that, in less than a year, you can pay off your debt, re-enter the financial system and become a candidate for loans again.

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