We can define these credits as a deal in which the financial institution grants cash to an individual in exchange for the commitment to pay said sum plus an extra within a certain period.
Among the many products offered by banks and other financial institutions, personal credit is one of the most popular, since they are a way to get money that we will use in our projects. We can define these credits as a deal in which the financial institution grants cash to an individual in exchange for the commitment to pay said sum plus an extra within a certain period. This extra money is for interest and other operating expenses.
Numeral
In its latest analysis of basic indicators of personal loans, the Bank of Mexico reported that in the period from February 2016 to the same month of 2017, a total of 6,310,112 loans were granted, which represented a total of 96,841 million pesos (million pesos). , with an average amount of 18,719. Regarding the amortization period, the average was 20 months to pay, with an average rate of 35.7%.
Factors to consider when requesting a personal loan
There are existing elements in the credits that you should consider before committing to one, since these factors can be the difference between acquiring a very heavy obligation for your payment capacity or keeping one that is more tailored to you and appropriate to your needs. All these elements must be analyzed for you to make a good decision.
Interests
It is the percentage that will be charged for the 대출 of money. This percentage is known as the rate. Another important concept associated with interest is the Total Annual Cost (CAT), which includes all the commissions and expenses associated with the credit and gives us a closer idea of what the real annual cost of the loan will be.
It is essential to keep these two concepts in mind, since we can stay with the idea that a low interest rate means that the monthly amount to be paid will be equally low, but the commissions and other charges can raise these payments significantly.
Commissions
They are a charge independent of the interest rate and are charged as a means of covering operating expenses and other product costs. The most common is the opening commission, but it is not the only one.
Other expenses
There are charges that are made if the applicant incurs in an action previously indicated as worthy of penalty: cancellations and even advance payments are often a reason for extra charges for the client.
Payment deadline
It is the time that the applicant has to settle his debt; it is almost always determined by the applicant. A general rule is that said term should not be longer than the life of the good or service that is acquired with the loan, for this reason it is inconvenient to request credits with long payment terms to finance a vacation or a party, since it will be paying for months or years for a short-term event. The term also influences determining the monthly amount to be paid, since at a longer term the monthly amount to be covered decreases, but not necessarily the total, since interest will continue to be paid for longer.
Monthly payment
It is the total amount to be paid each month. This amount is determined by analyzing three main factors: interest rate, total loan and term. As we mentioned before, the monthly payment is lower if the term is longer, but this affects interest payments: the longer the term, the more interest is paid.