It’s not always that we have money left over to pay all our bills or buy something we’ve been wanting. A personal loan is one of the solutions to get this money, and, what few know, is that it is something that has been following humanity for a long time.
According to historical records found from the Mesopotamian peoples, from the time of 4000 BC, the first records of something similar to a loan were found. These were made possible by people who had something left over, could lend to someone else, and could even receive a reward in return. This something, in return, ends up being characterized as the interest of the loan operation. And, to give you an idea of how well it was organized since then, there were contracts and rules, as the Code of Hammurabi.
Over time, loans have evolved to the current credit model.
What is a personal loan?
The Personal Loan, also called Personal Credit, is a line of credit that is offered by financial institutions, available to individuals. To get it, the person needs to request the amount and go through credit analysis to check pending debts consumption history and stipulate the loan conditions (amount, installments, term, interest rate).
Once the loan is approved, the customer will sign a contract with the financial institution, and the latter will deposit the amount in a current account.
The traditional personal Loan of great lake student loans does not require guarantees from the borrower. However, there are other types of personal loans, such as the personal loan with a vehicle or property guarantee, which require, respectively, a vehicle or a property as collateral, or the payroll personnel, which automatically deducts the loan installment from salary or retirement.
How does a personal loan work?
To better understand this concept and how a personal credit works, check out the example; Imagine a person who has a salary of R$ 5,000 and who is not in the habit of saving money, so he can pay the bills for the month only with the amount he receives. In other words, there is never anything left. Let’s say that this person had some unforeseen event, and in addition to the R$ 5,000 that he already uses to pay the bills for the month, he will also have to bear another expense of R$ 2,000. That is, the person has a total inflow of R$5,000 and a total outflow of R$7,000, a negative balance of R$2,000.
To be able to pay these R$ 2,000, the person will need to borrow this amount. If that person has the option, this amount can be borrowed from a friend or relative; however, otherwise, they will have to resort to a financial institution. In either case, because it is a loan and not a donation or a gift, the person will need to return the money to the person who lent it. And, in the vast majority of cases, in addition to returning the amount borrowed, it will need to return it with remuneration, called interest.
In this loan process, the payment term is agreed upon, whether the amount will be paid in installments or in a single installment, the interest rate, among other conditions that may vary according to the type of Loan.
Once the loan is approved, the customer will sign a contract with the financial institution, and the latter will deposit the amount in a current account.
The personal loan traditional Loan does not require guarantees from the borrower. However, there are other types of personal loans, such as the personal loans with a vehicle or property guarantee, which require a vehicle or a property respectively as collateral, or the payroll-deductible personal Loan, which automatically deducts the loan installment from salary or retirement. Personal Loan, to better understand this concept, check out the example; Imagine a person who has a salary of R$ 5,000 and who is not in the habit of saving money, so he can pay the bills for the month only with the amount he receives. In other words, there is never anything left. Let’s say that this person had some unforeseen event, and in addition to the R$ 5,000 that he already uses to pay the bills for the month, he will also have to bear another expense of R$ 2,000. That is,
To be able to pay these R$ 2,000, the person will need to borrow this amount. If that person has the option, this amount can be borrowed from a friend or relative; however, otherwise, they will have to resort to a financial institution. In either case, because it is a loan and not a donation or a gift, the person will need to return the money to the person who lent it. And, in the vast majority of cases, in addition to returning the amount borrowed, it will need to return it with remuneration, called interest.
In this loan process, the payment term is agreed upon, whether the amount will be paid in installments or in a single installment, the interest rate, among other conditions that may vary according to the type of Loan.
Who can take out a Personal Loan?
The major lines of credit offered by banks are Loans for Individuals and Credit for Legal Entities. So, if you are taking out a loan for a micro-enterprise or for your company, it is recommended to search within the Corporate segment because the conditions are better or the values are higher.
The other loans, that is, to buy a house, a motorcycle, to have cosmetic surgery or a trip, to pay for a course or a wedding party, are made with lines of Loans for Individuals.
Anyone can apply for a loan, but financial institutions set their conditions as:
Be a member in the case of cooperatives or account holder in the case of banks.
- Having a good history of relations with the institution,
- Have the authorization of the INSS in case of Consigned for retirees and pensioners,
- Have an agreement between the employer and the bank to obtain a Private or Public Payroll, etc.
How can I get a personal loan?
If you are thinking about getting a personal loan, the first step is financial planning. Often, in the hour of despair, people act on impulse and go in search of credit without taking the necessary precautions to increase the problem even more. Therefore, at this planning stage, evaluate your monthly budget, checking what amount of installment you could add to it.
Once the planning is done, the next step is to research different financial institutions, evaluating the interest rate charged, the payment term, and other conditions. Once this research is done, request the simulation and look for alternatives that will weigh less on your pocket, both throughout the entire Loan and within your monthly budget.
Remember that the better your credit score, the better the conditions and the less interest you will be charged. Try to track your CPF score, and don’t forget to sign up for Cadastro Positivo.
What is needed to get a loan?
For you to get a loan, start with defining the purpose for using the money in conjunction with your financial planning. Then do all the calculations showing how you intend to use the money and how you intend to pay it off.
Once you have defined the numbers and the monthly amount, you can afford to pay the installments, research options in different places, looking for the best conditions. This survey can be carried out at traditional financial institutions, but it is recommended that it also be carried out on online platforms.
Each bank has specific requirements for granting loans; for example, some require you to be account holders, specifically with a current account and with a few months as a customer; others don’t have that kind of requirement. If you have chosen a particular bank, consult the specific requirements; here on our website, you will find specific information for each bank in this regard.
Documentation depends on the type of loan you apply for. If it’s a pre-approved loan, you don’t need to present anything.
