In Brazil, there are a multitude of personal credit modalities for those who need extra money without having to justify the use of the resource.
These modalities are divided into types, advantages and disadvantages, something that should be researched by each client before hiring a personal loan in Brazil. Not sure which bank to borrow? Read and compare: Personal Loan: Which is the best?
Unlike most lines of credit, personal loans are easier to acquire because they do not require proof of the purpose of the borrowed money, thus reducing paperwork. Will you use to pay bills? Read: Paying Debts With Personal Loan
Interested in online loan? Read about:
- Online Personal Loan, Know the Market and Banks
- How to Make a Personal Loan Simulation on the Internet
Among the modalities that are offered in Brazil, there are types of personal loans that are offered even to those who are negative, as is the case of payroll deductible loans.
How Personal Loan Works in Brazil
Here in Brazil, and even other countries around the world, the interest rate that is charged for a loan, credit card, and other lines of credit is calculated based on the risk factor.
That is, the higher the risk of default by the customer, the higher the interest rate.
However, the reverse also applies when the customer offers lower risk of default, generating a lower interest rate.
And so there are other services besides Personal Loan.
But like many economic algorithms, personal loans also vary in the interest rate that banks and lenders charge. Last year, for example, the average interest rate on personal loans in Brazil declined from 2016. This is because the country’s economy has shown greater purchasing power on the part of Brazilians, and an ongoing economic recovery.
If you are self-employed, ie not registered and self-employed, you have probably had some difficulty with credit and loans.
Thus, to choose a good personal loan you need to check each month the interest rates charged by each bank or lender, as they tend to change constantly.
Remember, when buying a loan always look for lower interest rates as this will mean that your loan will come out cheaper at the end of the payment. The higher the interest rate, the more expensive the borrowed money will come out.
How Payroll Loan Works
This type of credit offers the best interest rate conditions because the risk of default assessed by banks and lenders is lower than ordinary personal loans. This is because the amount of loan installments is automatically deducted from the client’s payroll, which may be: INSS pensioner or retired, private company employee, military, public servant, among others.
This credit line still has the convenience of not requiring credit analysis, because only with the authorization for automatic payment discount, the credit line is granted. That is, the bank or lender understands that the risk of default is reduced without even consulting the credit history of that customer. Thus, payroll-deductible personal loans are usually the least bureaucratic and lowest interest rate loan.
How to get a personal loan in Brazil
To contract this type of credit you must first choose between the common personal loan or the payroll loan.
- In the case of a personal loan with no payroll loan, you need to bring the documentation required by each bank for the credit analysis to be performed.
- In the case of payroll, the customer will need to take their documents in a bank and apply for credit.
They asked you or talked about guarantor? Read: Personal Loan Without Guarantor
And remember: Before making a loan it is very important to compare and evaluate all options in the market. See a demo on our loan simulator!
In addition to simulating the best loan according to its profile and value, we filter by reliable banks and lenders. Excluding all possibilities of fraud.
Personal loan x Financing
While financing is used for specific purposes, such as vehicle or property purchases, personal loans are used to pay bills, settle debts, and travel, education and health.
The Regularization of Credit Fintechs
On April 26, 2018, the National Monetary Council announced the adoption of resolutions allowing new financial technology companies (so-called fintechs) to operate more independently.
It is expected that the regulation will promote an increase in digital credit service offerings and, with increased competition from traditional banks and lenders, a fall in high interest rates on loans and financing in Brazil.
However, this poses the challenge of making the population interact in a healthy way with new finance technologies. We must remember the number of frauds and scams that happen to consumers daily and such an expansion requires extra caution.
Research is very important before making credit transactions and never forget to do simulations before closing deal. And if you want to know more and understand more deeply all the factors and impacts of fintechs, check out this text.