Brazil is one of the countries that most consume credit-related activities. Especially when it comes to lending, there are several types of lending and their values and rules vary with financial institutions or banks.
Credit rating – how to check
Loan types work by way of a rating, so each loan modality will have a way of collection, an interest rate, and the way it will be repaid. It is often not necessary to specify how useful it will be for borrowed money.
Therefore, loan types are categorized according to their mode and payment method. Some have higher or lower interest rates. But they all have one, and this is how companies and institutions earn on the amount they borrow.
Knowing all types of loans is very relevant to your financial education.
What types of loans exist?
Granting credit or borrowed money is very common in the financial world and in the credit market.
Bank lending , for example, involves the granting of this money by banks to individuals.
Disposal of property and refinancing of property : The customer disposes of (delivers) a property or as collateral for the loan. The financial institution becomes the property owner and leases it with the opportunity to repurchase at the end of the transaction;
- Pledge loan: is a loan made by the temporary granting of goods, jewelry and the like (other than disposal). The value of the asset is assessed and the loan is granted. Thus, to recover the good one has to pay back the combined amount;
- Overdraft : This is a type of credit that is pre-approved when the checking account goes red. That is, it is a service that happens independently of hiring and is active when the current account does not have sufficient balance to cover a transaction;
- Anticipation of 13th salary: this type seeks to anticipate 13th by offering a credit corresponding to the amount that will be received. When thirteenth salary is granted, it must be used to repay the loan;
- Income Tax Refund Anticipation : This is the credit given for predicting how much the Income Tax (IR) will be refunded. Thus, when the amount is repaid by the IR, should repay the loan;
- Internet Credit Companies: The procedure is very similar to normal personal credit. However, it is made entirely in digital. Lenders operate on the Internet and generally have lower interest rates;
- Credit Card Revolving : This is the type of credit that is granted when you do not pay the full amount on your card statement. Thus, the administrator grants a revolving credit and charges the outstanding amount (which is passed on to the following month).
Remember that, since 2017, both overdraft and revolving checks have had some changes. For example, the minimum amount that could be paid in both and should be paid monthly now only happens in the first month.
In this case, the way out for both of them after the first month is to negotiate, finance or contact what types of renegotiations or forms of payment the companies in question offer.