What types of loans can you find in the market?

In the Spanish financial market you can find a wide variety of loans, which are always intended to supply a present or future need.

The types of loans depend directly on the financial company and on the profile of the consumer. What must be clarified is that people usually request loans according to their ability to pay and urgent needs.

Financing options can be classified according to their function, guarantee, expiration date, form of instrumentation, etc. But all the loans are included in two large groups, mortgage loans and personal loans.

Characteristics of personal loans

This type of loan is requested to supply a personal need at a specific time, that is, each client has the ability to choose the personal loan that suits their budget and personalized needs.

Generally, personal loans can be requested to:

  • Buy a vehicle
  • Make improvements to the home
  • Celebrate a wedding
  • Repair any fault in the home, whether to an appliance, car or other tools for personal use
  • Spend family vacations
  • Or cover an unexpected situation

Generally, people apply for loans when they do not have enough financial liquidity to fulfill a purpose. Loans are necessary many times, but it is not advisable to fall into extreme indebtedness due to a bad financial decision.

Personal loans can be classified into:

Consumer loans

They are loans that are offered to supply a need in goods that are durable. For example, loans to buy a car are the most common in the Spanish market. Other people also have the need to purchase personal loans to buy furniture for the home and a variety of important appliances. There are also student loans, which are necessary to finish a university career. Personal loans are often characterized by being of low economic value, but they are always subject to laws that govern loans in terms of interest rate, term of loan payment and other legal conditions that guarantee financing contracts.

Mortgage loans

This type of loans in some cases can be high in terms of the economic amount. These types of loans are acquired for the purpose of buying real estate such as a house or a building to start with the operations of a business. Mortgage loans to be of great value, require certain requirements as collateral In addition, that the customer has the ability to pay a mortgage loan, real estate work as a guarantee to cover the loan acquired in case a person is declared bankrupt or that has monetary liquidity problems that prevent him from continuing paying the loan. The repayment terms for this type of loan are longer, which may cause the debtor to pay more interest. So to speak, there are companies that offer mortgage loans to pay them to 40 years. You should also analyze the variable or fixed interest rates, and not become too indebted when you do not need it. A microloan can help you with any need you may have. Apply for a loan

Categories Uncategorized