When we want a loan we have to know the financial solutions offered by the market. Below, we show you the loan financiers you can turn to if you need capital and the types of credits they market. Compare among the best products and get the one that best suits your needs.
Banks as financial lending institutions
One of the main sources of financing to which we can turn if we need to raise capital is banking entities. This is usually one of the most common options when we want to finance for any type of project. Generally, banks offer us personal loans of large amounts of money and their characteristics will depend on the purpose of the loan.
The requirements imposed by banks tend to be stricter than those of other financial credit institutions since they are likely to ask for seniority as clients or some type of relationships such as contracting credit cards or insurance. However, if we already have a certain relationship with the entity, we may be able to obtain better loan conditions.
One of the drawbacks of resorting to these financial loans is that among the costs that we will have to assume to obtain the credit, we will find that we have to pay the notary fees. However, this does not happen with personal loans commercialized by financial credit establishments, since it will not be necessary to contract with a professional of this type, which allows us to save some money.
Private lenders are credit financiers
Another possibility available to us when we want to obtain liquidity are private equity companies. These companies have become popular with the passage of time and every day we can find more financial loans of this type in the market. These lenders made themselves known during the economic crisis as a result of the lock-out that banks gave in the granting of loans. In this way, these loan financiers make their way into the Spanish credit sector.
In addition, these lenders have a very wide loan offer, since depending on the amount we can get one type of financing or another. One of the main characteristics of these financial loans is that their requirements are generally more accessible than those of the banks. If we turn to these companies, it is not necessary that we have a link to have access to their credits or that we contract associated products. Regarding the cost, the loans of these financiers do not usually include study or opening fees, so we can save a considerable amount of money.
On the other hand, one of the features that have made these companies so popular is the speed they offer in their service. Depending on the product that we want to obtain, we can get an immediate response to our request and the deposit can occur at a maximum of 48 hours Intermediaries of loans with a mortgage guarantee
If we have a real estate property, we have another solution within our reach and they are the loans with mortgage guarantee. These loan financiers give us access to large amounts of capital that we can return over a long period of time:
Mortgage loan financiers, unlike the other lenders, will ask us to place a home as collateral. However, if we incur defaults, the company will keep the house. This is a risk that we must take into account before resorting to this type of financing.
One of the advantages offered by financial intermediaries is that they accept clients with more problematic profiles such as people who are in a delinquency register. However, if we go to a bank or a credit institution with outstanding debts, we can never obtain financing. In addition, this type of loan financing usually gives us access to 35% of the value of the home in the current market.
Different types of loans from financial institutions
As we have already seen, the financial alternatives of credits that exist in the market are very diverse, but the offer they make is also different. Next, we will see the different products offered by the Spanish credit sector:
- Mini-credits: these online loans are products offered by private-source loans, that is, they are non-bank products. The minicréditos allow us to get up to 750 euros, usually, and return within a maximum period of 30 days. In addition, the payment must be made in a single installment. The average cost is usually around 1.1% per day, so if we ask for 100 euros, 33 euros of interest will be generated. In this case, the total amount owed would amount to 133 euros. These mini-loans are financial solutions to situations in which we face economic setbacks for which we do not have sufficient liquidity to face them at the moment. Therefore, these credits are a possible solution to economic contingencies, since they grant us the money in a maximum of 15 minutes.
- Fast personal loans: these loans are personal and marketed by private lenders, they are characterized by their speed since they allow us to get the money in a maximum of 24 hours. In addition, the response to our request is usually automatic. The amounts to which they give access reach up to 3,000 euros and these loans, like the mini-credits, are aimed at people who need to cover contingencies, but of greater scope. The cost of the quick loans is around 8% TIN monthly and its repayment period usually reaches up to 2 years. This type of loans is also contracted online, through a quick and easy process.
- Personal loans: this type of loans are characterized by having a personal guarantee, which means that in case of default, we will have to respond with our present and future assets. Personal loans are marketed by financial credit institutions and can be hired at the bank’s office or online in the case of online loans. Loans of these characteristics can be used for different purposes, therefore, we can find credits to buy a car, to make a reform or for more generic purposes.
- Loans with mortgage guarantee: in these credits, the main difference is that the guarantee, instead of being personal, is a mortgage. This means that, if we want to opt for capital, it will be necessary to present a real property. In case we incur a non-payment, the company will keep our home, which is a high risk to assume. Mortgage loan companies normally give us access to money representing between 30-40% of the value of the property in the current market. The repayment terms tend to be longer than in personal loans, some of which reach up to 20 years of amortization.
These are the types of loans marketed by the different financial entities and, as we see, they have characteristics that make them more suitable for some situations or others and for different profiles. Therefore, it is important that we know their characteristics and conditions before resorting to their financing.
How do the different loan financiers work?
In the past, if we wanted to get financing, we could only use the offices of the entities that offered this service. However, there are currently many possibilities and financial loans that manage their service completely online. In this way, obtaining a credit today is much more agile and easier than years ago.
The banking entities continue to offer their product in their offices, although, with the appearance of online banking in the financial sector, it is already possible to obtain loans through the Internet. This shift towards the digital terrain is a consequence of the emergence and expansion of online loans and financial loans that have gained a lot of popularity in recent years. One of the advantages of online credits is that they are much faster to obtain and the process of processing is usually easier.
In addition, one of the factors that have undoubtedly fostered its success is that with these loans by Internet it is not necessary that we provide the documentation in person, we can send it by email or even by WhatsApp, through a photo. Anyway, depending on the type of product that we request, the loan financiers will demand a type of procedure or another. For example, mini-loans are much easier to apply for and process than any large personal loan.