Finance for dummies
Summer vacations are ending, and the purpose of them is that the education expenses that many of us have to bear come. Among these expenses are tuition, school supplies, pensions, among others. One way to pay them is through prior savings or financing thereof. If we are thinking about the second option, the word “loan” immediately comes to mind. So, we wonder what type of loan would be appropriate, in what term, currency, etc. The purpose of this post is to answer those questions in a simple and detailed way.
A payday loan
Would be adequate because it is freely available and can be used for any purpose, whose share is suggested not to exceed 40% of your net salary and in the same currency. This loan is provided by almost all financial institutions, being able to pay in simple installments, that is, 12 installments per year; or in extraordinary installments, that is, 14 installments per year (double in July and December for the payment of bonuses). We must not forget that, prepayments or early cancellations can be made without penalty in any financial entity. Mainly, there are three types of payday loans: unsecured, with liquid guarantee and with mortgage guarantee.
1. The unsecured loan is intended for people requesting an average amount, usually less than s /. 100,000 whose maximum term is usually 5 years, with a good credit history and / or income support. This loan is quickly approved and disbursed as it does not require the submission of many documents. In most cases the minimum income required ranges from s /. 700 ys /. 1000
2. The loan with liquid guarantee is directed towards people who do not have income support and / or without credit history leaving in term deposits, mutual funds, or bank certificates in foreign currency of their own or of a third party. The amount to be lent is usually less than that of the guarantee, ranging between 60% and 80% of the guarantee depending on the entity. One of the advantages of this loan is to obtain a good credit history and / or banking; opening the doors to future applications for another type of loan or credit cards.
The mortgage guarantee loan
Is directed towards people requesting amounts greater than s /.100,000 or who wish to extend the term of the loan up to a maximum of 10 years, leaving their property or that of a third party as collateral; and have a good track record and / or income support. It should be noted that in this type of loan amounts between 60% and 95% of the commercial value of the property can be requested according to the respective appraisal. Among the documents required by the financial institution.
In conclusion, there are different types of loans available according to each profile and needs. It is important to evaluate what type of loan is convenient and in which entity it is recommended to compare all possible options. Finally, we must remember that the information provided in this post is general and may vary according to the financial institution.