What types of personal loans do banks offer and their characteristics?

If you are thinking of applying for a personal bank loan , it will be better that you first orient yourself well about this type of loan. Here in this article, we will give special relevance to explaining the types of personal loans that exist and the main characteristics that compose them. Without further ado, let’s proceed to develop the topic What types of personal loans do banks offer and their characteristics?

What are personal loans?

We understand by personal loans, it is a certain amount of money granted by a lender to a borrower so that the latter use the financing for personal expenses, such as buying a car, making the mortgage payment on a house, etc.

These types of loans are mainly characterized by not needing collateral, they have personal guarantee, and in these loans, the guarantee would be the present and future assets of the borrower; On the other hand, they are very easy to process, they can be short or medium term and there are various banks that offer them in different presentations.

These loans are also commonly known as consumer loans and banks usually have them under different trade names, such as wedding loans, car loans, vacation loans, etc., although they may differ in certain aspects from each other.

Personal loans offered by banks and their characteristics

Personal loans from banking institutions

These are the most common personal loans and known to most people, these are the ones that are requested directly from banks established in your region.

This type of personal loans are characterized by being absolutely reliable, since they are being made in recognized, reliable and established banking institutions, which are in full power to give them, since they have the necessary resources to do so.

Another characteristic of these loans is that the majority of interests are high, although the rate varies depending on the bank in which the loan is requested.

In addition to this, a characteristic that stands out a lot about personal loans given by banks is that they are very demanding with the conditions and requirements necessary to request them, because for example, you cannot have previous outstanding debts, not have bad credit bureau and you require a fixed payroll with medium or high salary.

Although some banks make a difference by not having so many demands, by granting personal loans without a bureau , in case you are in an emergency and can request a loan even if you have a bad streak in the credit bureau.

There are also entities and private pages that allow you to request a personal loan in cash without having a bank account created.

Small online loans

This type of personal loans consists of small amounts of money requested online through the websites of private entities dedicated to this purpose. The money from these loans, as it is a fairly low sum, is usually used to get out of unforeseen events such as small trips, incidents, fines, bills, among others.

These loans are characterized by being very fast, since in less than 15 minutes you can have the requested money in your bank account, they also have the peculiarity that to request them no knowledge of finance is required, since the process is very simple.

Sure, like when applying for a credit or loan in a bank, you will need to satisfy certain requirements to apply for loans online , but these are not that complicated to satisfy.

Credits from private lenders

These are those granted by individuals, with the proper permits of the law, who are in the capacity to grant personal loans, characterized by being under contract, having very high interests and sometimes, having the intervention of a notary public.

Loans according to their purpose

  • Travel loan: to finance work, emergency or vacation trips
  • Student loan: to pay for a course, master’s degree, university tuition and the like
  • Car loan: it is intended for the purchase of a car and the estimated repayment term is 5-8 years
  • Consumer loan: granted by many entities, they are to buy some expensive good, such as appliances and household items, to return the money in 6, 12 or 18 months
  • Remodeling loan: intended to invest in repairs / remodeling within the home

 

by Abdullah Sam
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