Want to know what consumer credit is and what to look for when applying for it? Keep reading this article and find out the answer to this important question.
Consumer loans are loans designed to meet personal needs. People typically take out consumer loans to finance home furnishings, take a trip, buy household appliances, celebrate a wedding or birthday, among other things.
Do you know what a consumer loan is?
Consumer loans are loans that are designed to meet personal needs. People usually take out these loans to fulfill any personal desires, as mentioned above. They are not loans for a specific purpose.
According to a study by the Consumidor portal, a person can pay up to R$$96,400 reais or more than R$31% to apply for a consumer loan of R$1 million in 24 installments, depending on the bank or financial institution where it is requested. The secret to avoiding unnecessary expenses is to inform yourself and compare the different alternatives, to know which bank or institution is best suited to what you need.
By browsing the internet, you will easily find all the important information about consumer loans from banks such as Santander, Bradesco, Banco do Brasil, Caixa Econômica Federal, Itaú and many others. On these bank websites, you can compare interest rates, APRs and operating expenses.
If you are looking to find out what consumer credit from a compensation fund or cooperative is, these websites can also help you find out the requirements of different entities.
The most important thing you should know about consumer credit is that it is a small amount of money for an immediate expense that you can pay back in a few months.
Main features of consumer loans
When it comes to understanding what a consumer loan is and what it consists of, it is important to review some common characteristics that offers from different financial institutions have, such as:
- It is not always offered by a bank, it can also be a financial institution or an insurance company and the relationship is with a client who receives the money to meet a personal or family need;
- The personal loan is written in a contract and the client takes a copy. It must be signed by both parties, otherwise it is not valid;
- It must contain certain information that ensures that whoever requests it has access to each of the financial data collected in the transaction. Some of these data are: interest rate, number of installments, prepayment conditions, among others.
Important facts to consider in consumer loans
In the contract, some of the personal loan data that must appear are:
- Annual rate: corresponds to the amount borrowed and is the total cost of the loan expressed as a percentage, taking into account commissions, administrative expenses, etc.
- Nominal interest rate: applies only if the annual rate is not set, with the respective expenses.
- Amount: the amount borrowed.
- Number of installments to be paid.
- The amount of the fees (whether they are all the same or vary).
- Payment frequency (weekly, monthly, bimonthly, etc.).
- Establishment of guarantees, penalties and other expenses that may be applied.
Once you are clear about what consumer credit is and how to use it, remember that, when contracting it, there must be no lack of rights for both parties throughout the entire process of granting and paying the loan, general conditions and also defining that this Credit does not have a specific purpose, but the customer can use it for whatever they want, without having to inform the entity lending the money.
Now that you know what consumer credit is and its features, you can go to loan comparison sites, such as Bompracrédito, and quote your loan. Check the interest rate differences and choose the most convenient one. Do it all for free and without leaving home.