Cash loans allow you to face urgent situations, take advantage of an investment opportunity or satisfy a desire. If you use them productively, they can help you in an emergency or boost your personal development. In this article, you will know how this type of personal credit works.
What are cash loans?
Cash loans are personal loans that grant you freedom in the use of the requested money. That is, the financier does not grant you these loans with a particular objective, as in the case of mortgage credit. In this way, you can use the money from these loans to cover any need, opportunity or desire you have.
A feature of these loans is that they are granted expeditiously and without the application of many requirements.
Once the loan approval occurs, immediately the credit money is deposited into your account.
What are the requirements of cash loans?
The requirements vary from one institution to another, with a general rule: the less requirements, the higher the interest rate. The common requirements of this type of loan; that is, those required by all financial institutions are the following:
- Be of age.
- Reside in Colombia
- Receive income stably.
- If you are married, count on your spouse’s endorsement.
- Have an account at the institution where the loan is requested.
Each financial institution may add additional requirements, consistent with its own risk assessment policy. For example, they may require:
- A fixed or variable minimum net income.
- A minimum working age.
- Do not present adverse information in the credit history.
How to get a cash loan?
The important thing, in any case, is to make accounts. Be very clear about the concept of rate, the value of money over time. Ask, compare, find out a little more if you really need the money.
The easiest way to make a decision is:
- It quotes with several entities. Here you can do it
- Ask to be told what the monthly fee would be.
- If you want to know how much the credit would cost you, do this operation: multiply the value of the fee by the number of months:
Value of the installment x the term = total value of the loan (interest capital)
- Ask about other expenses, such as commissions for handling, sending the account, advancing fees, etc.
- Consider home equity loans. They have lower interest rates.
This information will allow you to make a better decision. In general, banks offer better rates than other institutions. Although, financial companies are doing well. An advisor will help you identify the best offer in the market.