First, it is necessary to consider the cost of the loan. Once you request the capital, you will agree to return an extra amount for interest. These can be of two types: fixed or variable.
Fixed or variable interest
As the name suggests, the fixed ones do not undergo changes throughout the life of the credit, while the variable interests adapt to the market situation during the duration of the commitment. When planning, it is recommended to opt for a fixed rate because it is known with certainty how much money should be counted to meet the fees. However, variable rates sometimes allow for a reduction in debt due to fluctuations in the economy.
Loan repayment conditions
Generally, the lending entities allow the customer to choose the payment times per week, fortnight or month according to their budget. There are also several ways to cancel the fees, for example, by bank account or personally at the window. The total capital to be paid is calculated taking into account the requested timeframe, the opening costs and the interest rate. Normally late payments have late fees and are sometimes recorded in files, which conditions the future granting of credit to a customer.
Credits with variable rate
A question we must answer in this quick guide on personal loans is whether it can be redrawn. This option is only plausible in loans with variable rates; Only the sum of the additional payment can be traced again at a certain time, and generally the minimum to be obtained is around 500 euros. On the other hand, if there is doubt about whether (in the case of debt with a fixed rate) , an early installment must be paid if the debt is paid early, the answer is yes. This fee is used to compensate the profits that are not received when the customer cancels the credit before the stipulated date.
Finally, it is important to keep in mind that personal loans usually include the hiring of insurance, so that someone pays the debt for you in case you cannot meet your obligation at any given time.