If you have in mind to buy a house, change your car, pay the higher education of one of your children or go on vacation abroad, many times the savings are not enough and it is necessary to resort to external aid. For these cases, it is more appropriate to request a bank loan. You want to know more?
It is not about adequately or inadequately managing the economy of a home, much less being irresponsible with expenses. On the contrary, a bank loan is the most reasonable option when undertaking a project that entails a high economic impact.
The construction of a house, the purchase of a flat, a change of car?… The reasons for needing bank financing can be innumerable. However, the request for a product of this type can not be made in a hurry.
For this reason, if you are thinking about applying for a bank loan to a financial institution, we advise you to first inform yourself about what types of products the market currently offers and which one is the best for you.
Let’s review the different types of loans offered by different banking entities today:
Undoubtedly, this is one of the most requested types of loans in Spain and the world.
They are requested in order to finance personal projects that are not necessarily tangible, such as a vacation abroad, the beginning of a business or the financing of university or higher education.
Personal loans are fairly easy to obtain and you can even receive a response in less than 48 hours.
In most cases, the deadline for returning the money ranges from one month to 5 or 8 years.
Much like personal loans, consumer loans are often used to finance consumer goods of a lasting nature.
Normally, people who ask for a consumer loan use it to buy a car, renovate household furniture, appliances, etc. It is important to know that both personal loans and consumer loans are loans where the amount is relatively low, so the return period is shorter.
As the name implies, mortgage loans are requested for the purchase of a home, regardless of whether it is a flat, a house, a farm or any other type of construction. They are characterized by being loans of fairly high amounts and with longer repayment terms.
As it can be deduced, the mortgage loans have a maximum limit of funds to be lent, which will depend on the value of the house to be purchased and the income of the applicant. In Spain, according to the Mortgage Market Law, financial institutions can provide between 70 and 80% of the value of the appraisal of the home.
In turn, the monthly loan installment must not exceed 30% or 40% of monthly income.
Do not forget that, unlike a personal or consumer loan, to apply for a real estate loan you must submit a large number of documents and prove to the bank that you are in a position to assume that responsibility.
Although it can also be considered as a personal loan, student loans have gradually created their own space within the banking world. Widely used in the United Kingdom and the United States, student loans are aimed at students who wish to finance university enrollments, postgraduate studies or trips abroad.
They are characterized because they usually have a cheaper interest rate than personal loans.
Loans with endorsement
The loan with endorsement is characterized by including a third person in the contract, which must respond in the same way as the borrower in case of default of the loan repayment installments.
Normally, this type of loan is used when income is not enough. In this way, the bank can be sure that there will be someone behind who will answer for the amount owed. Today, banks offer their clients other types of products such as microcredits or loans at 0%.