Personal loans: find the loan you are looking for
Have you ever felt that you need money to meet all the expenses you have to face? Do you need immediate money to meet an urgent expense? Do you have to make a payment but do not have the necessary liquidity? A personal loan can help you.
Personal loans are a very versatile type of financing that covers a wide range of loans and purposes of use. You can use them to finance your studies, to make a reform, to cover the expenses of your company… Due to this wide variety, you can find loans of all kinds of amounts and with varied repayment terms that will affect the interest that you can pay for the borrowed money.
Find out here what the characteristics of the different types of personal loans are, in which cases they can be useful and what aspects you should take into account before requesting them.
What are personal loans?
A personal loan is a financing product that is usually used to finance a wide variety of projects, planned expenses, or unexpected, urgent, and specific situations.
The applicant receives a certain amount of money from the financial institution that he has chosen and is obliged by a contract to repay all the money that has been slow within the established period. It must be taken into account that not only will it be necessary to return the money received, but to this amount, you will have to add the interest and the possible expenses derived from carrying out the operation.
Requesting a loan is very common today, some entities and types of loans require more requirements and involve more paperwork than others, but in general, you will be able to access your personal loan without complications.
Characteristics of personal loans
They are used to finance the purchase of goods such as appliances, technology, a car, etc., but also to pay for services such as vehicle and home repairs, a trip, etc.
You can finance the payment of a debt or an unforeseen event
Normally they do not require endorsements or guarantees
You can request a wide variety of amounts, some entities offer less than €1,000, but others offer up to €50,000
Urgent loans have higher interest than the rest
Previously they were granted almost exclusively by banks, now there is a greater variety of options
May have additional fees
Types of personal loans
micro credits
When to use them?
They can be used when there is a small financial emergency that needs to be dealt with immediately. They do not usually need endorsements or guarantees and they allow their request to people registered with ASNEF.
Featured Features
- Low amount
- Short return period
- quick login
- high interest
- Some have 0% interest for new customers
Where to find them?
quick loans
When to use them?
Intended for people who urgently need money. Your application process, study, and account entry are almost immediate. They usually do not need almost any paperwork to avoid losing agility and offer the loan as quickly as possible
Featured Features
- Fast account deposit
- The almost immediate study process
- No paperwork. No warranties or guarantees
- High interest, some have a 0% APR for new customers
- They can accept ASNEF
Businesses and freelancers
When to use them?
If you have a business or are a self-employed person who must face specific or periodic expenses. Sometimes liquidity is scarce and it is necessary to resort to external financing to meet payments.
Featured Features
- Its amount can be several thousand euros
- Endorsements and/or guarantees may be required
- They are not usually granted to people with defaults
- There are alternatives such as promissory note discounts, confirming or factoring
- The request for a line of credit is frequent
Studies
When to use them?
Student loans usually have lower interest rates than other types of loans and cover an infinity of purposes: to pay tuition, to finance the course, to acquire material, etc.
Featured Features
- Its amount varies depending on the purpose
- Your interest is low
- Your return period can be long
- You may need to contract associated products such as insurance or credit cards
Where to find them?
reforms
When to use them?
If you need to make small urgent reforms in your home, it could help you to find a loan that is quickly deposited into the account. If it is a large and thoughtful reform, it may be better to look for a loan that offers favorable conditions for long-term financing.
Featured Features
- You can apply for quick loans or microcredits for small and urgent reforms
- For large reforms, it is better to go to other entities
- The purpose does not usually have to be justified
- Your return period varies depending on the amount requested
youth loans
When to use them?
When applying for a loan, especially if it is a very young person, you may find entities that do not grant them. But in the market, there are a large number of entities that offer personal loans from the age of majority.
Featured Features
- They offer loans to those who are of legal age
- multiple purposes
- High and low amounts
- Payment terms subject to the amount
Purchase or repair of vehicles
When to use them?
Buying a car requires a considerable amount of money. Sometimes you cannot afford your payment through savings and you must resort to external financing. The amount of these loans is usually greater than that of auto repair loans, which are usually more urgent and of a smaller amount.
Featured Features
- Variables depending on their purpose
- Loans for purchase have a larger amount and a longer-term
- Loans for repairs are usually urgent
Personal loans online and in 24 hours
When to use them?
If you need financing with the utmost urgency, you can get them just by having an internet connection and a device from which to connect. You can request them online and without paperwork, you will enjoy the money deposited in your account the same day of the request.
Featured Features
- online application
- From anywhere and at any time
- quick login
- They accept ASNEF
- No Paperwork
Aspects to take into account to find the best personal loan
The minimum and maximum amounts offered by the entity
Before deciding on one entity or another, you will have to know the amount of the loan, in this way you can only go to the company that suits what you are looking for. Luckily, there are an infinity of personal loans that cover different purposes, so you can find entities that offer loans to pay for small expenses and others that allow you to finance elements with higher costs.
interest and costs
Depending on the loan you choose and its purpose, the interest will vary. The interests of student loans are usually more adjusted than those of other loans, with the interests of fast loans and microcredits being the highest of all. The interest, commissions and other possible expenses derived from the loan are one of the most important parts to take into account, since they will be key to calculating the total amount of money that you must return at the end. In addition, in the market you can find entities that offer 0% interest loans to new customers. You will be able to study if these entities have any additional cost in their loans or if it is worth requesting their services.
The minimum and maximum return period
The repayment term will determine the maximum and minimum time that you can take to repay the loan. Why is it important to know both? The maximum term will help you to know if you will have the capacity to return the installations in the maximum time allowed. If you do not pay the installments within the period stipulated in the contract, you may have to pay additional costs that end up making the total cost of the loan much higher. Knowing the minimum term will allow you to know what is the minimum period you will have to return it, in shorter return periods the total interest to be paid will be much lower.
The possibility of requesting extensions or delaying payment terms
On many occasions, especially if the loan amounts requested are very high, it is possible that difficulties will be encountered in repayment. The most important thing is that before not paying a fee, you contact the entity to see if you can extend this period. Most entities will allow you to request an extension, although it will not be free. A commission will be charged for this extension and it will probably also affect interest, so requesting it will cause the total cost of the loan to increase. Likewise, requesting an extension will be a much more beneficial option than not paying the installments. A repeated non-payment of installments will not only make the loan more expensive, but it can lead to legal consequences and even the applicant’s registration with ASNEF.
Accept loan applications with ASNEF
Many people who are registered with ASNEF find it very difficult to obtain financing. This is because the registration in this register is usually done for not paying the debt incurred. This, without a doubt, is a risk factor for financial institutions, which is why they prefer not to offer to finance. However, some entities offer loans with ASNEF and study the application of people in this registry. why? Not all registrations are the same, some people have been registered irregularly and others for debts that are not related to credits or loans. These people may have some possibility that the entities grant them a loan. In any case, if you are in ASNEF and need financing,