A financial institution (lender) advances an amount of money to another (borrower), with the obligation to return said advance, as well as the previously agreed interests and possible expenses incurred by said operation. Delivery of a capital to a person with the obligation to return it, together with the agreed interest. Usually this return is made through periodic installments, made up of capital and interest.

Personal loans are those that are also known as consumer loans. These are offered by banks to citizens, the objective of this being to be able to acquire any good or service that may be specified. Personal loans, as we said, advance the capital to the borrower, having the obligation to return said capital to the lender, as well as the interest generated by the loan granted.

Consumer loans, in general, have a higher interest rate, as well as a lower amount.

This is because they are loans that present a higher risk of delinquency.

Personal loans can be requested at any bank. Regardless of whether you are a client or not, a person, who meets the requirements set by the bank, can request a personal loan, as well as delivering the documentation required by the staff who will carry out the study.

However, there are many other companies, which we call financial, that are dedicated to the delivery of personal loans, offering significantly lower requirements than those required by the market. This is due to the fact that these companies charge these clients a much higher interest rate than in a financial company; even without being a customer.

Among the reasons for requesting a personal loan, we could highlight many and very varied.

The application for a personal loan is usually made for the acquisition of a vehicle, a home renovation, the acquisition of a computer, the payment of a son’s communion, as well as a wedding, the payment of the daughter’s studies, among other series of reasons.

In summary, we are talking about a type of loan that is intended to pay for moderate-cost goods and services. In general, the amount of money requested in a personal or bank loan is destined to the purchase of a specific good or service. In the case of companies, perhaps we are more used to talking about credit operations materialized in lines or policies, but as we have already commented on other occasions, credit accounts have to be requested to face temporary periods of lack of liquidity or to cover the expenses of an extraordinary situation related to working capital

With a good use of credit, a significant number of situations of the personal, family and business economy of these times can be solved. A bad use of credit can lead us to have a financial problem. The loan is therefore useful and the problems are caused by us, when we make an inappropriate use, such as: incurring a debt greater than our ability to pay.

A loan can also be taken for the cancellation of debts, in which case the structure of the liability does not undergo any modification or alteration since the money received will be applied in the reduction of another liability, that is, there is an exchange of values ​​between items of the same nature.

A loan is an excellent mechanism to meet personal, family and business needs. Let us always make good use of credit, not exceeding the payment capacity, preferably go into debt for an investment, purchase of an asset or a venture and take care not to incur in default or delay in payment.

A loan can also be taken for the cancellation of debts, in which case the structure of the liability does not undergo any modification or alteration since the money received will be applied in the reduction of another liability, that is, there is an exchange of values ​​between items of the same nature.

A loan is an excellent mechanism to meet personal, family and business needs. Let us always make good use of credit, not exceeding the payment capacity, preferably go into debt for an investment, purchase of an asset or a venture and take care not to incur in default or delay in payment.

Good management of personal loans or any other type of loan is the responsibility of both the one who receives the credit and the one who grants it. Good conduct on the part of both ensures a healthy economy at the micro and macroeconomic level.

There may be different reasons for applying for a bank loan; However, the ideal is that it is for a really necessary cause; after all, we must bear in mind that we will have to pay commissions and interest to the bank for it.

These are some of the most common reasons why people apply for bank loans:

• Pay for your studies or those of your children.
• Buy a movable or immovable property.
• Any medical emergency.
• An unforeseen expense that is considered an emergency.
• To invest in your own business.
• A trip.

The guarantee and the collateral are different terms and both do not apply to all loans. Most personal loans only request a guarantee, that is, a way for the bank to collect the loan in case the client does not comply with them. The guarantees are, for example, the present and future assets of the applicant. In the case of a collateral, this is a person who agrees to take over the loan payment in case the borrower defaults on it.