Are you in need of quick cash? Personal loan may be the best option. Offered by banks and financial institutions, it can be paid in a pre-established period, with the addition of interest and charges. But, without the need for a specific destination, as in financing.
In addition to this modality, there are other types available in Brazil, but with specific criteria. Research reveals that Brazilians borrow for various purposes, such as taking out more expensive debts, buying appliances, renovating the home, and even paying for day-to-day bills like rent, water and electricity.
We have listed for you the most popular types of loans in Brazil.
With the lowest interest rates on the market, this mode is the safest for banks and financials. Because the installments are debited directly in the INSS payroll or benefit. According to the Brazilian Federation of Banks, this is the most requested type of loan in the country. Data from the My Pocket Happy Portal reveals that 34% of Brazilians have already made payroll loans and most have used the money to pay other debts or credit cards.
In Brazil, there are now almost 52 million credit card users. According to a survey by the Credit Protection Service (SPC Brazil). Of this total, almost half purchase at least once a month. One in five users uses their credit card as an extension of their own income, when they need to buy or pay for something, but they are out of money. Most say they do not know the monthly interest rate as they choose to pay the minimum of the invoice, which can be a risk as it reaches more than 300% per year.
With a specific purpose this type of line of credit is also very popular in Brazil. According to a survey by SPC Brasil in partnership with the National Confederation of Logistic Directors (CNDL), about 10% of Brazilians have made some kind of financing in the last 12 months. In the majority of cases, those who hired this type of credit wanted to buy a new car, to go to college or to realize the dream of own house.
Without the need for a specific purpose for the money, this mode of credit is offered and released by a bank or financial. In Brazil, among all the people who took some type of loan, 62.2% used personal loans at banks. According to a specific research by SPC Brazil, most consumers call for personal loans to pay off debts from other loans, credit cards and installments.
In all, Brazilians owe about R $ 24 billion in overdraft, according to data from the Brazilian Federation of Banks, and almost half of the people who use this line of credit resort to it every month. In most cases the money is used to cover unforeseen illnesses and to repay debts in arrears. Most people are unaware of the value of the interest charged on this type of operation, which offers an easy and unbureaucratic line of credit, which makes it easier to get involved in a snowball and get defaulted.