Choosing the right loan type is essential for you to get the lowest interest rate.
Financing a property or a car costs much less than other types of loans – despite weighing heavily on the budget – because these assets serve as collateral for the bank. That is, if you do not pay the installments, the institution has the right to take the house or vehicle from you. Therefore, their interest rates are lower.
The personal loan, which is offered only to employees of private companies, public servants, is the cheapest for an emergency, as their interest rates are lower due to the zero risk of default, since it is deducted directly from the account for which you receive the salary or benefit.
Anyway, the order is to research well to find the best modality.
One of the essential elements in contracting a bank loan is the guarantees offered to the financial entity. Thus, the quality of the guarantees provided is part of the capital allocation process and without which there is no access to capital.
The conclusion of a credit agreement presupposes rights and obligations: the right to have access to the capital of others and the obligation to return it increased by its cost, within an agreed period.
Relationship with financial institutions
Many banks offer advantages, such as interest rate discounts for better-connected customers.
Account age, the existence of investments or products contracted with the institution or payment history of previous loans can influence the relationship level of the customer and the bank.
Stay tuned and compare the options available on the market.
Salary and credit portability
Whoever receives the salary in a certain financial institution has the possibility to transfer the debt of a loan or financing contracted in a certain financial institution to another. With the transfer, the interest rate may change, but the value and term of the contract must be identical to the outstanding balance and the remaining term of the transaction. With this, it is possible to obtain a lower interest rate, negotiating directly with the destination institution.
Lower interest rate institutions
Traditionally, loans are provided by banks or finance companies, but in recent years the market has modernized and new institutions have started to operate.
Applying for a loan online has many advantages. In addition to having access to the modalities with the lowest interest rates and longest terms, the process is very practical. You do not have to leave the house and go to the bank branch. It is possible to do the simulation and request over the internet.
Therefore, before applying for a loan, do a lot of research until you find the best option and don’t forget to evaluate the CET (Total Effective Cost) of the operation, as there are other aspects that can influence the cost of the loan .
Now it’s up to you: get to work!