A loan with lower interest rates is essential for those who need money and do not want to have to pay much more than what they received from banks or financial institutions. And despite the high rates, it is now possible to look for more affordable options.
For that, it is necessary to know each one of the main options of the market, being aware of exactly what these fees are and how they are charged. Each of the modalities has advantages and disadvantages, and for each client a particular type of loan will be better suited.
So, how about we know these options? This post will feature the main low interest loans available today, showing how each one works. Continue reading and check it out!
Payroll loans: direct payroll deduction
This modality is one of the loans with the lowest interest rates, and it also has the characteristic that its payment installments are discounted directly on the payroll of those who contracted the loan.
This gives banks and financial institutions greater assurance about payment, as it is more difficult to make non-payment of wages or arrears. Therefore, it is possible to offer more affordable interest.
This product is mandatorily contracted to be paid in at least 72 months, diluting the contractor’s salaries during that time.
Customers are limited
Because it relies on salaries, this type of loan needs to free risks related to the lack of this salary, which can occur in case of dismissal. Therefore, payroll loans are limited to two types of people:
- pensioners and retirees by the INSS;
- employees of companies that have an agreement with the banks, allowing this credit so that the organization assumes any risk of default;
In addition to this limitation issue, another disadvantage of the modality is the Total Effective Cost (CET) – which concerns how much is paid, in general, for this loan.
Banks may include fees such as credit rating and other fees, such as insurance. All of this can be included in this total amount, which ends up making the loan more expensive.
Refinancing: your property as collateral
In this operation, the customer’s property is offered as a guarantee of payment of the amount requested in the loan, hence the name “refinancing”. It is precisely this guarantee that makes banks reduce interest rates.
As it is a loan that deals with high amounts, its term for repayment is also long. On the other hand, it is important to always observe everything that is provided for in the contract before signing the loan agreement.
As with the payroll, pay attention to details such as the total costs of the operation, in addition to the fact that the loan is only 80% of the total value of the property.
The contractor needs to be safe
One of the main negative points of this modality is its high risk for those who are hiring, who can, in fact, lose a property in case of default. Therefore, it is recommended for those who have a lot of stability and financial security, with the certainty that they will be able to honor it with their commitment.
It is very common for people who need a loan to start a venture, for example.
Extra fees are charged
It is also important that the loan contractor pay attention to the amounts charged for registration with the notary, which is mandatory in this operation. The cost of this is about 0.6% of the value of the property – and there are still fees for evaluating the property, which can reach up to USD 2,500.
Here at Quero Financiar, we have a partnership with the best known institutions in the market, thus offering the possibility of having your loan with property under guarantee with the best conditions in the country.