3 Types Of Loans And The Benefits Of Each

Whether because of a job, illness or car or property, at some point in life many people have had to resort to some kind of loan.

There are many types of loans offered by banks and financial institutions, but do you know how they work and the benefits they can provide?

For some of these questions, here are three main types of loans to choose from that best fit your financial situation.


Types of Loans

Payroll Loan

money loan

It can be requested by workers with a formal contract, public servants or INSS beneficiaries (including withdrawals), and is released upon credit review. It works as follows: loan installments The latter are directly discounted from the monthly salary or benefit prior to the receipt of maturities. In this way, financial institutions are assured that they will receive the installments on time, reducing the risk. of default.

Because of this mechanism, the interest rates are much lower when compared to the personal loan, which is the main attraction of this type of loan. Before requesting it, you should consider that the installments will be directly deducted from your salary every month, which causes lower income availability. An outlet to cover unexpected expenses and, being used responsibly, may be a good option.


Pledge loan

money loan

It consists of taking some valuables such as silver and silver jewelry to a regulated pawnshop and receiving cash in return, which can be as much as 85% of the value of the pledged money. Credit analysis is required, but the object is pledged as collateral. It will be recovered after you have paid off. For this reason, its main advantage is the fast access to money, as it does not need guarantors either.

It is one of the fastest and bureaucratic loan alternatives. It is indicated that this option is used to urgently settle debts. And attention! This modality recommends some precautions. Choose a reliable pawnshop and pay in advance not to lose the pledged object. Normally, Savings Bank Federal agencies have their own pledge window in most cities. from the country.


Personal loan

Personal loan

It is common for banks to offer credit lines according to the profile and relationship of each client. The amounts are already pre-approved by the bank and have slightly higher interest rates than the payroll loan, but have minimal paperwork.

The possibility of having extra money falling into your account is tempting, but it’s not worth taking a loan, for example, to buy something superfluous, like a new phone. Since if you have expensive debts (credit card and overdraft), switching to a cheaper one, such as personal credit, is a good option. Opt for low-interest lines, such as the one offered by Just and other Athos partner institutions (you can see several offers in the comparator within the app).

The best types of loans for you will depend on your urgency, condition and financial situation. The most important tips are planning, information and installments that fit your pocket, so that debts do not accumulate and make your financial life unfeasible.

Have you ever needed a loan? What was the chosen type? Share your experience in the comments!

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