The types of loans you can find
There are times in life when for lack of liquidity, to be able to buy an expensive good, such as a house or a car, or to face an unforeseen expense, you need to ask for a loan. The most known are the personnel and the mortgage, since who more or less who has requested one of these at some time. However, they are not the only ones that exist, and there are different types of loans depending on what we want the money for and that they may have different interests and conditions. Therefore, before applying for one, it is convenient to continue reading and to know the main types of loans that are available and which one best suits your circumstances.
The most popular types of loans
Mortgage loan. As we said, it is one of the best known. Not in vain is present in the lives of most families for decades. They are granted to buy a house or to build it, and the housing in question is the guarantee, although it is not ruled out that the financial institution also asks for payroll or guarantor. They are medium-long term loans that are paid over several decades through a monthly fee. The interest rate can be fixed, variable or mixed and the main reference index is the Euribor.
Personal loan. They are those who ask to face a specific need at a certain time such as an unforeseen expense, a trip, a wedding, a small repair at home, etc. Sometimes no guarantees are requested, therefore, as the risk assumed by the financial institution is higher, interest rates are higher than in mortgages, where housing is the guarantee. They usually return in a few months or years. There are financial entities that offer pre-granted loans to clients with a good credit history. (We recommend you read the articles here What are the pre-approved credits and what is the credit history ).