Often, applying for a loan is the only way to unburden the financial life and get the accounts back into balance again. A common drawback of this type of request, however, is that most of the loans do not go away for free: in addition to the amount you actually use, you still have to pay an extra amount that comes in the form of interest rates.
Because of this, if you need a loan, it is important to look for low interest options.
One of the big questions among those who hire a loan is if it is possible to get a totally interest-free option. Unless you take the money with relatives and friends and these do not cover interest, there is no interest-free loan, but there are low interest options.
When talking about borrowing with money from banks and financial institutions, however, you can not speak of loan without interest. That’s because when they lend money, institutions take a risk that the payment may not happen.
In addition, there is the so-called opportunity cost: the financial institution will be lending money that it could have invested in some investment and for which it would receive remuneration. So the loan needs to give you a paycheck so it is worthwhile to stop investing the money. Finally, we must remember that there is inflation and today’s money will be worth less tomorrow, and therefore its value needs to be “updated”.
Thinking about these factors, you can understand why it is difficult to get an interest-free loan. Despite this, it is possible to find loans at low or low interest rates, which reduces the total amount to be paid. See below the main options.
The best known loan without high interest is the one made with relatives and friends. This is what happens when you ask for money from someone you know and pay the same amount when you pay. As a moneylender is a crime, this ends up being a form of loan that is normally free of monthly increases.
This type of loan is usually granted to few people, such as civil servants and pensioners or retirees of the INSS, but the modality is already growing in the private sector. Some institutions already work with the option for employees of private companies. With the guarantee of the discount directly on the payroll, the default risk is lower and therefore the interest rates tend to be lower than other options.
Part of the interest charged by banks and institutions in general is due to the fact that they need to shoulder a whole structure. In the case of institutions offering personal credit online this ceases to exist, which lowers costs. The more personalized and rigorous assessment of credit also increases the guarantees for the company and therefore lowers interest even more.
We also evaluated other companies online. In this post, you give other options to have a high interest loan.
Both the refinancing of property and vehicle give the good as collateral for the loan. As the institution has the guarantee that it will not go unpaid if you delay the installments, the interest charged tends to be even lower than the payroll loan.
There are banks, private and private, that offer the use of overdraft without interest charges for 10 to 15 days. This may be an option if you are expecting to receive salary or some income, for example. However, it is important not to exceed the credit deadline because, after the benefit expiration, interest is charged for every day you used the overdraft and, Specially, the Overdraft is one of the most expensive credits in the financial market.
Depending on the point of view, the credit card can also be viewed as a form of high interest loan since you make a purchase today and can pay in a few days without paying fees. However, it is important to take great care when using a credit card. If you fail to pay an invoice or just pay the minimum, the chance to curl up in debt is great because it is the most expensive form of credit in the market, with interest that exceeds 400% per year! Use the card with financial planning, already thinking about ways to save to pay the bill on the right day.
In order for you to have access to a high interest loan you need to take some care with your choice of institution and credit assessment, which can end up being more rigorous. In this sense, it is necessary to choose the institution that offers the line of credit that best fits your financial needs.
For credit assessment, you should consider removing or at least negotiating debts to convey security and reliability to the institution. If this is not possible, then you need to offer a good as collateral so that the financial institution does not get lost if you do not repay the loan – this is the case of refinancing.
Making simulations is also important as well as comparing different conditions. Sometimes a bank offers a lower interest rate, but it is also less time for payment, for example. Depending on your budget, this may not be the best option.
There are several ways to get a loan, such as from banks, financial institutions and other banking intermediaries. First keep in mind clearly the purpose of taking out a loan and make your planning to pay off the debt as soon as possible. Research before hiring a credit to identify the lowest interest rate for you.
Some of the more advantageous options include:
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