5 steps to get a personal loan

Every now and then the financial situation can get tight, right?

What is a personal loan?

This is perhaps the most well-known loan model – along with the payroll loan – among Brazilians.

Personal loans are offered by almost all banks and financial institutions, from the most traditional to so-called fintechs – companies that offer digital financial services – such as Nubank and Inter.

One aspect of personal loans that really attracts attention is their speed.

Depending on the institution you choose, the process from applying for a loan, going through a credit analysis, being approved, and having the money available in your account takes about 24 hours.

This makes the loan model a viable option for those who need to deal with a financial emergency, for example.

How does a personal loan work?

In this credit option, the customer borrows a certain amount and makes payments in installments defined during the loan contracting process.

The interest and fees resulting from the transaction are added to the value of these installments.

Since these rates can vary significantly from one institution to another, it's essential that customers do their research and run simulations before choosing an institution to apply for a loan.

How to get a loan?

With technological advances, applying for a loan has become even easier. In addition to fintechs, many traditional banks are also looking to adapt.

This helped facilitate public access to this type of credit.

Many of these institutions already offer the option to apply for a loan directly through their website or even through an app.

To apply for your loan, the customer can go to their bank branch with their personal documents in hand to learn more about the loan options available to them.

And, in addition to this more traditional option, most institutions also offer the option for customers to complete the entire procedure directly online – either through the website or apps – without having to leave home.

In these cases, it is also necessary to present some documents when applying for the loan.

5 steps to get a personal loan

Even though access to this type of credit line is becoming increasingly easier, it is still necessary to follow some steps to further increase the chances of your loan being approved.

Below, we've listed 5 practices that, when applied, will help you get your dream personal loan.

Research well before choosing

Before choosing the institution where you will apply for your loan, the golden tip is: do your research!

Stay up to date with all the offers available on the market.

By doing this research before applying for a loan, you'll be able to find the best option for you and your budget.

Extra attention with your information

When you apply for your personal loan, you will need to fill out some forms.

They must contain information such as name, address, profession, among others.

In order for your request to be properly analyzed, it is essential that all information contained in the form is correct.

During the internal analysis carried out by institutions, a simple error in filling out the form can make the difference between a loan being approved.

Therefore, the tip is: fill it out very carefully and, if necessary, review the information before submitting your form.

Maintain a good relationship with the institution

Another very important tip for anyone looking for a personal loan is to ensure a good relationship with the institution you'll be applying for the loan from.

By maintaining a good track record, without debts or late payments, the customer's chances of getting a good offer are even greater.

Avoid having previous outstanding debts in your name

Even though access to personal loans is easier, one of the main reasons why requests are denied is the presence of previous debts, the famous "bad credit rating."

People with a negative credit rating, in the vast majority of cases, are unable to obtain success in their application, as the bank understands that the chances of default in such cases are greater.

In cases like these, the solution may be to seek one of the lines of credit available on the market and offered specifically for this audience.

Use and abuse simulations

Another resource – and a valuable tip – that is very useful for those seeking this loan is: simulations.

With this tool, you can perform different types of simulations before closing a deal.

Through simulations, you'll be able to better visualize the various options and paths available to follow, making it easier to choose the best option.

It's important to remember that the tips contained in the texts are practical and will help you successfully apply for a personal loan, but they are not a guarantee.

Each bank/financial institution has its own internal analysis policies, which may or may not make it easier to approve your application.

Conclusion

While a personal loan may seem like a good option for those looking to get out of a tight spot, it's important to carefully consider whether this loan model is ideal for your situation.

Don't forget to carefully analyze the interest rates and payment terms offered by financial institutions.

This is important, as there are some banks that offer very high interest rates and payment terms that may not fit your budget.

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Nathalia P. Silva

November 17, 2021