Loan with or without guarantee.Full Guide!

Check out all the key points to better understand about guaranteed and unsecured loans in that complete article ..

“One of the reasons for the personal loan being a popular way of getting borrowed money is because the credit is unsecured. On the other hand, what do you think of the secured loan, would it be a good idea to cut interest rates? “

Well, that depends. Whether an unsecured or unsecured personal loan is ideal or not depends on several factors including your financial budget, your income and your current financial situation.

We will discuss here the benefits of “unsecured and guaranteed” modalities to reach a verdict before making the final decision to request one of the modalities.

What is secured loan?

A secured loan is a type of credit that requires a guarantee to be given to collect the loan amount in the event of default by the borrower. This type of loan will always have an asset, asset or property that represents the collateral for the lender.

What does it mean? If you fail to pay some installments consecutively, ie end up failing to fully comply with repayment repayments of the loan for at least three months, the lender or bank is able to collect the collateral you have placed by using all legal means applicable .

What is unsecured loan?

Unsecured loan is an approved line of credit without the need to offer any collateral. Instead of pledging assets, borrowers qualify based on score, rating, credit history and especially income.

In this line of loan, lenders do not have the right to take any physical asset like (a property or vehicle), when the contractors fail to make payments, lenders have to turn around to get the money back.

How important is your CPF and income on a loan?

Your credit: Lenders notably check your CPF at Serasa, SPC and other agencies to find out if you are up to date with other creditors. Based on the information contained in your credit reports, an intelligent system creates a credit score, which is one of the factors in assessing your eligibility and reputation as a consumer.

To get an unsecured loan , you will need to have the name clean and income compatible. If a person is coming out of a bad financial recovery and left many negative entries in the past, it may take a while to rebuild good credit and have full access to financial products and services from banks and credit institutions.

Your Income: The vast majority of lenders want to make sure you have a salary or income sufficient to pay any new loan they decide to approve on your behalf. When you apply for a personal loan ( unsecured or secured ), lenders ask for proof of income, regardless of your score or score.

Income is one of the most important factors in approving a personal loan, payroll or financing.

To prove proof of your income, you must submit:

  • Holerites
  • Counter-checks
  • Payment Receipts
  • Tax returns, IRPF or Decore
  • Bank statements and / or rental agreements

Probably one or the other proof may not be accepted by some financiers, however, all will provide a proof of income sufficient to be accepted your request. But, do not end there, then lenders will evaluate and calculate your (debt to income ratio), to decide if you are able to repay the installments without difficulty or not.

Now let’s see what benefits each type of loan – with and without collateral, can not affect.

Benefits of a secured personal loan

Positive side : Generally, any secured loan tends to lower interest rates to below 2%. Similarly, payroll loans, including for salaried employees.

This is because the risk of default is reduced to the lender when a borrower delivers a guarantee, whether immovable or movable, bonds, gold, jewelry, valuables or valuables.

Personal loans with collateral, secured loans or even (home equity), known as ” secured loan of .. “, the of .. can be anything in the case of home equity is a property but can be a vehicle as well.

Can we talk about payroll? In this modality, the guarantee is the salary, counter-check or benefit of the applicant. The most interesting thing about secured loans, with the exception of mortgage, is that the credit line can be a good option for people with a restriction on the name and a negative CPF.

By providing a guarantee to obtain the loan, the contractor reduces the possibility of the lender to deny the claim, obtains good interest rates, below 2%, and the lender is insured in case of default of the contract.

Bottom line : Not everything is flowers, therefore, in a secured personal loan , in cases of default, the borrower will lose the collateral (asset, asset or property), whatever it may be. There is only an exception in the payroll that does not have as the contractor to lose the salary or the benefit, rsss.

Whether it be fixed deposits, tangible assets, property, real estate, land or other, you can lose them if you can not repay the loan.

fazer empréstimo pessoal com garantia ou sem garantia

Benefits of unsecured personal loan

The main benefit of an unsecured personal loan is that you do not need to put any of your assets, property or properties at risk. In case of non-payment, ie default, the lender will simply take legal action to recover your loaned money.

Even not paying, this will not affect or put at risk on property titles or personal property.

The loan without giving any collateral is beneficial to people with poorly defined or well defined financial goals, and especially so that they do not have the amount of cash resources on hand to accomplish one or another purpose.

To start a small business or business?

For example, if a person wants to start a small business or business, but does not have a valid guarantee to present to the lender at the time of applying for the loan, in this scenario, it would be very difficult for him to be able to start his own business.

However, we have a small problem, in unsecured or unsecured loan , interest rates have a tendency to be higher than in a secured loan . This is because of the “non-payment risk” which increases considerably when there is nothing that guarantees the money lent by the lender.

Good payers pay for the bad

Therefore, the higher interest component means that it serves to cover the cost of the loan when there are bad payers. At the tip of the pencil, good payers pay the debtor’s nonpayment price, even so, the lender still manages to make a lot of money.

Also, it is important to know that ” unsecured personal loans ” or ” unsecured loan ” are easier to put the score and credit score into a bottomless hole. Not to forget, having a credit history with spots, is different in the case of secured loans.

Therefore, the decision to take out a personal loan with or without collateral depends on your willingness to honor the loan agreement or not, even if a financial disaster happens.

Increase in the search for unsecured loan in Brazil

In Brazil personal loans are becoming increasingly a popular financing option for all types of consumer credit, and will continue to increase. With so many offers available, we understand that we need to know a little more about the advantages and disadvantages of each option.

Therefore, we will continue with this article for a better idea, when we understand how it works, we can make better choices.

Because a loan may be a good idea

  1. Money released for any use

Among the many advantages when releasing a personal loan, is that the money can be used for all kinds of personal use without having to be accountable to the lender. A personal loan offers the flexibility needed to fulfill personal desires, projects and satisfactions.

  1. Best way to create credit history

A loan of any kind will always be one of the best ways to create history and increase your credit score. Even knowing that credit score depends on many variables and factors distinct from each other, most credit related financial activities play an important role in increasing the score.

  1. Choice of modalities with lower interest rates

The flexibility that the loans have is outstanding, there are many categories, specific segments and lines of credit that they can take from the most affluent, to the lenders with the worst qualifications possible, from very high rates to extremely low rates. Remember that interest depends mainly on the qualification of the contractor and your credit status ex:

  1. Good or bad credit
  2. CPF with or without restriction
  3. As a clean or denied name
  4. Unemployed or salaried
  5. Pensioner, Retired or Public Servant
  6. With warranty or without warranty

That is why it is possible to get an easy personal loan with the minimum of paperwork, provided that the applicant is qualified in some form of loan offered by banks, financial and credit unions.

  1. No warranty is required

A personal loan is the most common way to borrow money without having to give collateral . Approval depends entirely on your credibility and income. This is another important advantage.

Because a loan can be a bad idea

  1. Very high interest rates

Since the approval of a loan is entirely based on the credibility of the contractor, it therefore attracts lower or higher interest rates. However, higher rates can be avoided if the person has good credit in the square, and very high if the person has a restriction and dirty name, that is, negative.

  1. Rigor eligibility criteria

For credit operations involving conventional personal loan, the eligibility criteria are very strict. Generally, a person with no problems in Serasa / SPC / SCPC and with a score above (650/700 or above), and with enough reimbursement capacity, will not encounter difficulties. But contrarily to this, negative people have only two or three alternatives:

  1. Loan for negatives
  2. Loan with guarantee
  3. Payroll-deductible loan

3. High Income Compromise

Just as day-to-day payments on your loan installments help increase your credit score, the default also negatively affects, taking notes as a debtor in one or the three largest national protection agencies – it complicates. In addition, it can cause unpayable debts and the commitment of income to uncontrollable levels.

Always compare personal loan offerings that fit in your pocket and match your monthly income.

The best rates for home equity loans

Many banks and financial institutions in Brazil offer real estate refinancing, which is also known as a ” secured loan “, so that we can get a little idea of ​​this universe, we have listed some lenders who operate in the market because we think it important that you compare the conditions of each one of them.

As with any type of loan, knowing how to choose the right mode and especially the lender with the most appropriate rates and conditions will help you save hundreds or perhaps thousands of dollars saving you with interest.

Check below the best institution and your rates for the secured property loan.

Key Points to Better Understanding Personal Loans

1. For what purpose can it be used

Personal loans are meant for the usual expenses of the most varied types and personal affinities or to withdraw money when any financial requirement arises. You can also consider a personal loan application to pay for higher value expenses like buying a home or a car. It can be used to consolidate all your debts and debts.

2. Approval criteria and credit policy

Every bank, financial or private lender has their own criteria to approve or disapprove their applicants for the loans offered by them. It will depend on whether you are salaried, self-employed, beneficiary of INSS or public servant etc. However, the general criterion includes the minimum age, functional occupation, income, ability to pay the loan and place of residence.

3. Maximum time to repay the loan

The maximum duration of each type of loan varies according to the category of the customer’s profile of the consumer and the modality chosen to be contracted, in which case we are speaking, the term can extend up to 180 months.

4. Disbursement of loan amount

Once your loan application is approved, you receive the requested money from a bank account deposited automatically, this means that it can take a few minutes, such as hours or days – it depends on the lender and the banking system.

5. How much can someone borrow on a loan?

The amount you can borrow depends on your ability to pay and the amount of debt you have already cashed in your income. Banks check on other creditors’ expenses and ongoing financial commitments.

They will compare your monthly salary to how much you spend on debt repayment, if the ratio vs. debt ratio. income ratio is high, this will indicate that you are already over-indebted and will not be able to afford the burden of further payments.

Your current income level and debts have a direct influence on your ability to pay. Therefore, if you are in a lower income range, it is obvious that a personal loan amount will be approved according to the percentage allowed and which the bank finds most convenient.

6. Which bank or financial institution is best to borrow?

It is good to compare many offers from several different banks before establishing which will be your lender. However, the key key factors to consider choosing the best bank or financial loan, include:

  • Amount of fees and interest charged
  • Period of payment of installments
  • Additional Benefits and Benefits for Granting
  • Additional fees and charges for loan processing
  • Request review, evaluation, and approval time
  • Quality of pre and post sales service

A good way to choose the best bank or financial institution is to apply online for your personal loan , on websites or online applications.

7. Loan interest rate in general

Personal loans are by their own natures different from each other, the vast majority are unsecured therefore they may have up or down interest rate variations. Many of the leading banks provide personal loans from 0.89% to 26% a month.

However, your interest rate depends on several factors directly linked to your credibility and occupation.

How to take out a loan with a guarantee property

# 1 Step . You deliver the required documentation: Talk to a Santander manager to schedule the delivery date of the complete documentation at the agency. The list includes documents of the client, property and the insurer (if it is to be used by the market). And you can ask your manager to follow the progress of your process via email.

# 2 Step . The bank does the credit analysis: After delivering the documents, Santander will analyze its financial capacity. We will contact you to inform the result or need for additional documentation. The analysis of your credit is valid for 120 days. So you have more time and tranquility to choose your property.

# 3 Step . The bank evaluates the property: the inspection and evaluation of its property are made by the engineering company accredited by Santander. This evaluation is for the sole purpose of framing the operation. The exact verification of the location, footage and eventual defects of the property are the responsibility of the proponents.

# 4 Step . You sign the contract: the signature happens at the branch where the process was initiated. At this moment, the assessment fee of guarantee, referring to the evaluation of the property, and the first installment of insurance will be charged.

After signing, it is necessary to register the contract at the Registry of Real Estate. The loan amount will be deposited in your checking account within 5 business days after the return of a contract and the registration of the property to the bank.

Documents to request an unsecured or unsecured loan

Documents to request an unsecured or unsecured loan

Although the required documents vary from one financial institution to another, some of the key documents that you must provide with your personal loan application include:

  • ☛ Check income (payroll, benefit, paycheck, Personal Income Tax, Personal ..
  • ☛ Proof of address and personal contacts
  • ☛ Basic identity documents (RG, CPF, CNH, RNE etc.)

Unsecured or collateralised loan approval process

Unsecured or collateralised loan approval process

The approval of most existing loans including those requiring collateral for those that do not require collateral is in the hands of the lender or the analysis system when automated.

However, the decision is generally based exclusively on the criteria specified by the bank, financial institution or official body governing the financial system. Once all required documents are submitted and the verification process is completed, the loan will either be approved or not.