Personal credit is one of the alternatives that banks offer to those who need money. If approved, you will receive the money in your account or you can withdraw it directly from the cashier. Check out which collateral are required to get personal loan.
Are you thinking about making the trip of your dreams or maybe renovating your home? Getting a loan can be a way out. To reduce the risks of the transaction, banks ask for collateral and you go through a credit analysis to see if you can afford this loan.
Understand How Credit Guarantee Works
Banks or financial institutions require two types of collateral, which may be: Real or Personal (Trustee).
Real guarantees may be subdivided into mortgage, chattel mortgage and pledge. Personal or Fiduciary guarantees are collateral and guarantee. On average, financial institutions request around 130% in collateral for the amount of the loan.
Banks rate the risks of operations, taking into account four aspects:
- Client Risk: Indicates the client’s current borrowing capacity;
- Project Risk: Indicates the projected capacity of the customer.
- Proposal risk: assesses the purpose, purpose, value and term of credit and its appropriateness;
- Weighting of collateral: The quality (value and liquidity) of collateral for collateral purposes.
Personal credit is one of the alternatives that banks offer to those who need money.
Difficulties in meeting warranties
If you are a microenterprise that has no collateral or collateral and is having difficulty meeting the collateral required by financial institutions, then you can use supplemental collateral mechanisms, increasing your chances of approving credit applications.
How to get personal loan?
To apply for a loan, you need to go to a bank or financial agency with the following documents:
- Official ID with photo and social security number
- Proof of Income
- Proof of address
- Work card or other proof of employment (employment contract, company social contract, proof of MEI or self-employed, etc.).
- Latest Income Tax Return
- Credit information (usually obtained by the bank or financial institution itself)
You do not have to be a bank account holder to apply for the loan, but the bank requires opening a checking account, but only when it releases the funds in order to move the amounts through the customer’s account. But you are not required to buy bank products to receive financing.
Remember if! Personal loans tend to have higher interest rates as they present higher risk to the lender.
Personal credit for negative
Not all banks agree to release personal credit for negatives and when they do, it can be very expensive. Usually, it is the lenders who lend the money to those who are negative as long as you get a guarantee from a third party, such as a guarantor who has a clear name.
Before contracting a loan, research and compare Bank and financial conditions and plan to know if you will be able to repay the loan!
Want to know other interesting proposals to improve your business? Be sure to check out the Low Interest tips!