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Many times it is necessary to finance the purchase of goods or needs such as car, motorcycle, dental expenses, a special trip, etc. .. meet unexpected expenses or unforeseen circumstances. We can use small loans where the bank or intermediary asks the borrower for granting certain requirements: to have payroll, fixed employment, etc. and also people who are committed as guarantors, this is called personal guarantees and may have the same person requesting the loan. These personal loans have interest rates ranging around 9% today, always depending on the characteristics of the loan and the guarantee presented.
But sometimes we find ourselves in certain circumstances in which we are unable to submit signatures. So some banks offer loans without collateral. The loans are usually unsecured loans for small amounts, from 600 to 6,000 euros, but may reach 60,000.
This type of unsecured financing is offered by all financial institutions, from traditional banks to companies that are advertised daily in the press and on TV as well as other small businesses located intermediate throughout Spain. The only thing we have to show is the DNI and the last payroll.
Unless you have some financial literacy, probably every one of us have occasionally confused the terms ‘credit’ and ‘loan’. Surely we will have used without distinction to refer to each other, and we’ve said that about “I have to borrow” or “I will ask for a loan” believing that they mean it. The truth is they are very different, and it should be clear a few concepts on credits and loans:
* The loan the bank makes available to the customer a fixed amount and the customer becomes liable to repay that amount plus a commission and interest on the agreed deadline.
* In the bank credit available to the client in a credit account, the money that is needed to a maximum amount of money.
* The loan is usually an operation in the medium or long term and the amortization is usually done through regular payments, monthly, quarterly or semiannually. Thus, the client has the opportunity to organize themselves better when the payment plan and your personal finances.
* Generally personal loans are granted to individuals for private use, therefore, usually require personal guarantees (guarantees) or collateral (pledges or mortgages).
* The loan amount is usually granted enters the customer’s account and it must pay interest from day one, calculating the interest on the amount that has been granted.