Secured loan: truths you need to know

The secured loan is a great option for those who need money and looking for lower interest rates and longer payment terms. As in this option it is possible to place a property or vehicle as collateral for the loan, it is easier to improve payment terms for the consumer.

Secured loans

Secured loans

We have separated 10 truths about the secured loan that you need to understand this new modality.

In the secured loan, it is necessary to place an asset as collateral

In the secured loan, it is necessary to place an asset as collateral

The guaranteed loan works like this: if the customer has a property or vehicle in his name, it is possible to place it as collateral for the loan. Thus, the asset will be sold to the financial institution offering the loan. This is advantageous for the company because it reduces the risk of non-discharge and at the same time allows to offer better payment terms for the consumer.

Thus, to apply for a secured loan, the customer contacts the credit institution that will carry out a financial analysis to find out the profile of those who are applying for the credit. If everything is right, the asset that the customer wants to place as collateral, be it a property or a vehicle, is placed in the loan agreement.

As the company has a guarantee for a good, the risks are less, since if the customer does not pay the loan, the good can be sold. This allows the company to be able to offer lower interest rates and longer terms.

When placing a vehicle as a guarantee, the asset will not be in the name of the company offering the credit

When placing a vehicle as a guarantee, the asset will not be in the name of the company offering the credit

In the secured loan your asset will not be placed in the name of the company, it will only be sold to the institution that offered the credit, however it will remain in the client’s name.

An alienated asset means that the indirect possession remains with the credit company that provided the loan, but the owner of the asset remains the customer, so much so that he can continue to use his property or vehicle normally. In this way, as soon as the loan is repaid, the sale will be removed from the document and the link with the credit institution ends.

You do not lose the good if you delay a installment

You do not lose the good if you delay a installment

Rest assured, in case you forget to pay a portion your property will not be taken. Before considering the non-payment of a portion as default, the company contacts the customer to negotiate the payment and understand the reason for the default.

Default usually starts to be considered default after the third installment in arrears. If this happens, the company itself contacts the consumer to notify the default and begins a negotiation process to try to solve the problem.

Your good will be taken as a last resort, in most cases the institutions try their best to solve the installments in arrears with the consumer.

Secured loans do not require advance payment

Secured loans do not require advance payment

It is important to know that in any type of loan, payment in advance is not necessary, in the company that offers credit should request payment in advance to the consumer, this practice is illegal and is considered a fraudulent operation.

The loan is made through a consumer request that will undergo a financial assessment and after the entire process, if approved, the request will be formalized in a contract that the customer receives. Only after the loan is signed will it be released, thus, the payment of the installments begins only after receiving the credit.

Even with a secured loan you need to prove income

Even with a secured loan you need to prove income

Even if the customer opts for a secured loan, he must prove income. Credit companies need to know that the customer is able to afford the loan installments, avoiding default.

In addition, credit analysis is also essential for the institution to be able to decide what the loan amount will be, the interest rates and the payment term. Thus, the better your credit analysis, the greater the chances of getting a higher and better loan.

The history of consumption in the market influences the approval of the loan

Another fact that greatly influences companies when deciding the amount of credit to be released, is the consumer’s history of market consumption. It is very common for people to find out when applying for a loan that they are negative in the market.

Therefore, it is necessary to follow the history over the years, always update your registration and pay off debts. The information released is very important and has great weight for credit institutions, as it indicates when a person is in default or negative.

The loan with property guarantee can take longer than the car loan

The loan with property guarantee can take longer than the car loan

It is possible to use your property or vehicle as collateral in a loan, however the property collateral modality may take longer to be granted. This is because the procedures involving the properties are more complex and time consuming than those for vehicles.

In the case of a loan with a vehicle guarantee, everything is faster as soon after the credit analysis has been approved, the vehicle documents are requested and the inspection is carried out. With everything approved the loan is released.

However, with real estate the process is a little more complex because it requires a legal pre-analysis, property evaluation, documentation and registration, among others. Only after all this process will the contract be sent to the notary for authentication and the credit will be released.

The asset used as collateral must be paid in order to be part of the loan.

In order to place the asset as collateral in the loan, it must be paid off. However, if you do not have a good paid it is possible that the company will pay the good for you.

This is called a quotas intervenient, which is when the consumer wants to use as collateral an asset already sold in another company. In this case, the institution settles the remaining amount and deducts that part from the total credit granted.

It is possible to get the loan by placing a guarantor

Guarantor is the person who is responsible for paying a foreign exchange security, so companies accept loan applications with a guarantor. However, the person must have a first-degree relationship (father, mother or spouse) with the consumer of the loan and must accept responsibility for paying the installments.

You will only lose the good in case of default

You will only lose the good in case of default

The good can be taken in case of default, however this is something that the institutions try their best to avoid since the execution of a good is not something fast or even simple. For this reason, the company considers default from the third installment in arrears and will try its best to negotiate the debt and the form of payment before entering the execution process. The good will only be taken if it is not possible to reach an agreement and after all attempts to negotiate payment are over.

Now that you know everything about secured loans, how about knowing the possibilities that lender offers? We have been in the market for over 20 years, always working with safety, quality and trust. Make your loan simulation here.

Tips for Taking a Secure Online Loan

 

 

Have you ever thought about buying a car, a house, making that dream trip, but in the end failing to achieve this goal due to lack of money?

Unfortunately, it is not always possible to have all the money on hand to make a dream come true, but there are possibilities that allow this to happen, such as the loan.

Currently, there are online credit companies that offer better terms than banks, making it possible to obtain loans with lower interest rates and a longer payment term.

However, it is necessary to take some precautions, so we have separated 5 tips that will help you make a secure online loan.

Find out more about the company

Find out more about the company

Don’t just be content with what the company’s website tells you, always try to find out more. It is interesting to research the history, talk to people who have already used the company’s services, take advantage and look for recommendations and evaluations. On the website you can find testimonials from people who have negative situations with the company, so it is possible to avoid problems.

It is important to search the company’s social networks or blog and research the registration status. To do this, just take the number, which is usually at the bottom of the site, go to the website and search. If the site is not in agreement, it is interesting to look for other companies.

Review the contract carefully

Review the contract carefully

Having the loan contract in hand is essential, it is your guarantee and can avoid possible problems. Thus, the company must provide the contract with all the correct data, specifying the loan amount, payment term, interest and fees, among other information.

When you receive the contract, read everything carefully and, if possible, take it to a trustworthy lawyer, he will check all the clauses and conditions imposed, if everything is right it is time to sign the contract. If you have doubts about the contract do not hesitate to contact the company and if you do not consider that proposal fair, do not be afraid to look for another company.

Pay attention to the value of the parcel and payment conditions

Pay attention to the value of the parcel and payment conditions

When applying for the loan, a credit analysis will be carried out that helps to better understand the client’s financial situation, allowing the elaboration of the loan components, such as the loaned amount, interest rate, payment term, if the loan will be guaranteed, among others. others.

Be aware of the conditions imposed by the company, if the portion exceeds 30% of the consumer’s income, as this can be considered bad faith by the company. The percentage of the loan installment must be an amount that does not affect household income.

You need to take some precautions and look carefully at loan offers so that everything works safely. So, by following these tips it will be possible to find a quality company and get a secured online loan.

There are currently many online credit companies that are safe and reliable which has been in the market for over 20 years. Know the conditions and possibilities offered here.

Small loan for self-employed

The self-employed are solely responsible for their work. They also bear a certain risk by pursuing their own business model. However, there are some hurdles to be overcome at the beginning, especially if you have little or no start-up capital. After all, for example, office space or a vehicle must be procured and kept.

Then there are the expenses of everyday life. If you still have family and children, the financial situation of the self-employed is often tense. Vacation trips and other luxury items are hardly noticeable, especially in the first years of self-employment. This is a real dilemma, since here too the need exists in principle. But there is a remedy, namely a small loan for the self-employed that banks and credit institutions offer their customers. The following article shows the terms, conditions and conditions for such a loan.

The basis for lending – creditworthiness and clean Credit Bureau

The basis for lending - creditworthiness and clean Credit Bureau

A small loan for the self-employed is very well suited to cover purchases of up to 5,000 USD. For example, you can use this amount to buy office equipment or similar. The loan is usually only granted if the lender has certain collateral. Proof of income is not an option for a self-employed person because there is no regular income at the beginning. With regard to other collateral that ensures the creditworthiness of a lender, ownership of shares or real estate also belongs.

If these are available, a small loan for the self-employed is a very realistic thing. Another basic requirement for a loan of this type is a clean Credit Bureau, which means that there are no negative entries in the nationwide uniform database. Otherwise, the loan was promptly rejected. The conditions and framework conditions for a loan for the self-employed are set out and explained below.

Interest, term and Loan amount – they form the amount of the installment

Interest, term and Loan amount - they form the amount of the installment

In the case of a small loan for the self-employed, maximum loan amounts of up to $ 5,000 apply. As with conventional loans, the term of the loan is between 6 and 60 months. The lender should compare very well when it comes to interest rates. After all, there are big differences between banks. The interest rate range is between 4 and 14 percent.

All of these factors ultimately result in the amount of the monthly repayment. Usually there is a final installment at the end with which the loan term ends. A loan for the self-employed is therefore a very fine and pleasant thing. It benefits the founders of the company, because financial resources are absolutely essential at the beginning.

Mini-credits: A great alternative to consumer credit

 

It is a contract in which a lender grants (or acquires the commitment to grant) to a consumer a credit in the form of deferred payment, or loan or an equivalent financing formula.

In other words, it is a short or medium term loan that is granted to obtain freely available money. It is called consumer credit or consumer credit because it is usually used to invest in consumer goods.

What regulations govern a consumer credit?

What regulations govern a consumer credit?

The rules governing this type of financial product is the Law on credit agreements for the consumer. The consumer may not waive the rights recognized in this Law, said resignation and acts contrary to this law null.

The Law applies to those contracts in which the lender grants or agrees to grant a consumer:

  • Credit in the form of deferred payment
  • Loan
  • Credit opening
  • Any equivalent means of financing

The consideration of consumers is limited to natural persons who act in an area outside their business or professional activity.

For the purposes of this Law, consumer loans are not granted to legal persons in any case. Nor are consumer credits granted to individuals if the purpose is related to their business or professional businesses.

What credits are not governed by the regulations?

  • Those with mortgage guarantee or pledge, although in the case of the pledge only those in which the liability is limited to the good are excluded.
  • Those whose amount is less than 200 dollars.
  • Those discovered less than a month.
  • Those who do not have any cost, or without the return period is less than 3 months, the expenses do not exceed 1% of the nominal.
  • Those that grant companies to their workers in special conditions.
  • Derivatives of judicial transactions or debt refinancing without added costs.

Consumer information

One of the key points of the Law is everything related to information. The Law facilitates the definitions of each of the concepts and includes in its annexes standardized models to supply it.

What is a mini credit?

What is a mini credit?

It is a type of personal loan. The mini-loan is designed for returns in the short term and not very large amounts. The mini-loan amounts can be arranged quickly.

In 2013, with the banking crisis. Banks more focused on capturing liquid than granting credit. It is when private lenders appear who began marketing mini-credits through the Internet. They cover a niche market that traditional banks stopped supplying. Most of these companies operate online and by telephone and their use is intended for the purchase of consumer goods for the provisional coverage of other debts.

What regulations govern a mini-loan?

What regulations govern a mini-loan?

They are not regulated by the bank on distance marketing of financial services for consumers. Its main objective is the regulation of the remote contracting of financial services with consumers and in this concept many types of legal acts and businesses of varied typology enter.

Is it worth a mini credit?

Is it worth a mini credit?

The money is provided in such a way that it tries to prevent the people who receive them from falling into recurring and lasting debts over time. That is, it is about advancing amounts of money small enough to be comfortably reimbursed in short periods of time.

In this way the primary role for which this type of operations was created is fulfilled: to provide individuals with urgent loans especially to be able to meet unexpected expenses.