There are different types of loans for getting quick cash. In this article, discover what they are, their characteristics, and their purposes. Understand that to best utilize them, you need all the necessary information.
Nowadays, speed is one of the most common advantages sought by many customers seeking financing. Gone are the days of bank lines, thousands of paperwork, and weeks of waiting to obtain a loan.
Nowadays, thanks largely to technological advances in the financial sector, it's possible to obtain between R$50,000 and R$60,000 in a process that takes between 15 minutes and 48 hours. This ranges from small loans from private financial institutions to large personal bank loans to finance projects like buying a car.
Many financial institutions today provide information on the different types of quick loans, their fine print, and how to use each one.
Types of quick loans and their characteristics
There are several types of loans that allow you to obtain quick cash. Each type has its own characteristics, tailored to meet a specific need. Understanding the different types, and especially their fine print, will help you choose the one that best suits your financing needs.
Quick mini-credits
The most common quick loans are mini-loans, which can be deposited into your account in 15 minutes. These are small loans between R$50 and R$300 if you're a new customer, or up to R$1,000 if you've already requested and repaid another loan from the same company. Their main characteristic is that they must be repaid within a maximum of 30 days, and the borrowed money plus any fees are refunded in a single installment. These rates are among the highest on the market, averaging R$1.11 per day.
So, if you borrowed 300 reais at 1.1% to return within 30 days, after a month you'd have to pay 399 reais in one lump sum. These characteristics mean they should only be used for specific emergencies and as long as you're confident you can return the money within 30 days without any problems, if you want to use it responsibly.
Otherwise, you will end up creating an ever-increasing debt and run the risk of your name becoming negative and not being able to get any more loans due to a bad reputation as a payer.
Credit lines
Another well-known type of fast credit is lines of credit. These loans offer loans of between R$300 and R$5,000, repayable over a period of 6 to 36 months. They have an average cost of 23% APR (Annual Percentage Rate), slightly higher than the average credit card (18.3%). They can be granted within 24 hours to have the funds in your account.
They work similarly to credit cards, with the advantage of not having to wait for the card to arrive at home and only paying for the money you use. They can be used to build a nest egg to dip into when needed, for example, to pay a bill. The danger is that you might end up choosing very low installments, meaning you could be paying off the loan for many years, which will result in longer interest accruals and you'll end up paying more than the agreed-upon amount.
Banks also provide quick loans
The third type of quick credit is lifelong bank loans. Consumer loans allow you to obtain between R$1,000 and R$60,000 to finance large projects (cars, renovations, studies, etc.), with a repayment term of up to eight years and an average cost of R$7.781 (Annual Effective Rate).
Granting this type of credit is not usually quick, except in some specific entities that offer quick loans of large amounts, although they are few, and in the case of pre-granted loans, whose revenue is immediate, since the bank has already done so and previously analyzed the customer's situation.
Generally, the bank analyzes your customer profile and, based on this, grants you a loan with a maximum amount that, if you ever need it, you can obtain instantly or within a short period of time.
As you can see, depending on your financing needs, you can access one or another type of quick credit to best suit your needs. Just be sure to get the information you need before doing so.