Along with credit cards, personal loans are the most common form of financing for families, since they are easy to manage through the banks’ digital channels. In banks there are a lot of variety of rates and terms, Two key factors in choosing a loan: for example, a 60-month loan ranges from 74.5% at Banco Nación to 110% at Supervielle.
In the scenario, a report from Banco Provincia recommends looking at the Total Financial Cost (CFT), which in addition to the rate includes commissions, expenses, taxes and other related products. In that sense, he recommended targeting those with a fixed rate instead of variable rates, such as UVA credits that adjust for inflation.
“Many people focus only on the rate, that is, on the cost of money. However, it is also important to consider that there are commissions, expenses, taxes and other related products. In this case, Banco Provincia always recommends verifying the Total Financial Cost (CFT), which, unlike the Annual Nominal Rate (TNA), incorporates the other costs, ”said the entity.
Regarding the terms, the Bank recommends “considering the effects of inflation over time, taking into account the possibility in the future of encountering an unforeseen need for funds or the possibility of paying your loan early and even without surcharges, all factors that may recommend extending the term ”.
Regarding the amounts, the advice is “do not ask for more than what is needed to avoid unnecessary interest payments.” Most entities offer the possibility of simulating a loan on their pages and facilitate the comparison of different amounts and terms .
Consider the effects of inflation over time, take into account the future possibility of encountering an unforeseen need for funds or the possibility of canceling early
“As in the case of the term, when the amount is calculated it is necessary to evaluate the fee / income ratio to see the availability of payment. Even if the person believes that he will need more money in the future, he can then renew the previous loan or take out an additional loan, depending on the convenience, “said the entity.
The bank also advises, before proceeding with a loan, “take advantage of virtual simulators, since most entities offer the possibility of simulating a loan on their pages and thus facilitate the comparison of different amounts and terms”.
On the other hand, the entity also highlights that if a user regrets having taken a credit, they have the right to revoke the acceptance of the product within 10 business days. “If the user of financial services rushed to make the decision and feels regretful, he has the right to revoke the acceptance of the product within a period of 10 business days from the date of receipt of the contract or the effective availability of the same. , whatever happens last. This option has no cost or responsibility as long as you have not made use of it. If once the loan is taken, the person decides to cancel the debt, there is the possibility of doing so at no cost: there are no commissions for paying off the debt if at least a quarter of the original term of the financing has passed or 180 calendar days from its granting, of both the greater ”, maintained.