Do you know what types of loan interest there are? Interest will make all the difference in the final amount of the debt, so it is important to know in order to save money.
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Getting a loan to help you get out of trouble, pay off debts and organize your finances can be great! However, the main disadvantage is the interest.
Interest is income, that is, it is the remuneration charged for lending money.
Of course, it is inevitable in these operations, however, to hire an advantageous option it is important to evaluate the interest rates applied, so you can hire the best alternative for your pocket.
In today's text you will discover the main types of loan interest and which options have the lowest interest rates.
Be sure to check it out! See the text index below:
- What are the main types of loan interest?
- Simple interest;
- Compound interest;
- Payroll loan;
- Loan with collateral;
- Conclusion.
What are the main types of loan interest?
Interest is the remuneration that the company or person who lends the money receives. It serves as the rent for the money.
They make a huge difference in the amount to be paid and can vary depending on different factors, for example, the country's economic situation and the internal policy of each financial institution.
In fact, there are loan models where the interest rate applied is much lower than in others.
Interest also serves as a guarantee for the financial institution that lent the money, because it provides more security in case the applicant does not pay the installments.
When defining the loan interest The company uses 3 main values as a basis, which are:
- Cost of sale;
- Customer acquisition cost;
- Investor's rate of return.
In addition, the institution also considers the risk of default and credit. The Selic rate also influences the cost of the loan, because it is used as a basis for composing interest rates. loan interest.
The interest applied to the loan can also be divided between simple and compound See below the types of loan interest and how it works.
Simple interest
Simple and compound interest form the structure of all financial transactions, so if you are always looking for credit to organize your finances, it is very important that you know the basics about them.
This way, you can choose the most economical alternative and avoid getting into even more debt.
The calculation of simple interest is in fact simple to understand and perform, as the name suggests.
In this option, the defined interest rate is applied monthly to the amount received. An example:
If you apply for a loan worth R$3 thousand with interest of 3% per month, you will always pay 3% of R$3 thousand (R$90) until all installments are paid.
Loan interest types: Compound interest
Compound interest, in turn, is based on the total amount, including the interest that accumulates in each period, that is, it is interest on interest.
The calculation is carried out based on the initial value, that is, the loan value + the interest amount charged in the previous month.
For better understanding, see below an example with the same amount used in the calculation of simple interest.
If you apply for a loan of R$3 thousand with interest of 3% per month, the interest amount for the month will be R$90.
Next month it will be necessary to count on the loan amount + interest, that is, R$3,090.00.
Therefore, the interest amount to be calculated for the second installment is on the amount of R$3,090.00:
- 3% of R$3,090.00 = R$92.70. Next month interest will be charged on the amount of R$3,092.70.
Every month the amount is recalculated according to the interest rates of the previous month. Before applying for a loan you need to check what the types of loan interest and fees that will be applied to the amount requested.
Now, to make your search even easier, you will learn about loan models with the lowest interest rates on the market and easy to apply for, including for those with bad credit.
Payroll loan
The payroll loan has the lowest interest rates on the market. This is because the payment of the installments is automatically discounted from the salary or benefit.
This way, the bank has a guarantee of payment and the risk of default is very small.
Furthermore, the target audience for this loan model are people with a lifetime income, for example, public servants and INSS retirees and pensioners.
However, some companies make this loan available to employees in private networks, that is, those with temporary income.
Certainly, in this case, the rates of types of loan interest are a little bigger.
According to the law, the interest rate ceiling for the INSS loan cannot exceed 2.14% per month.
According to the interest rate table found on the website of BCB, the lowest interest rate applied to the INSS loan is 1.28% per month, from Financeira CCB Brasil.
The most expensive pre-fixed rate is applied from 2.20% per month, for Bank of the Northeast, but it is still much lower than the interest rates on personal loans, for example.
You can check all the interest rates applied by financial institutions to their different credit products and services on the website of the Central Bank of Brazil.
It is worth noting that the tables are updated periodically, so differences may be found in the percentages mentioned above.
Among the companies that offer private payroll loans with the lowest rates on the market, we can highlight, for example:
- Societe Generale Brasil – 1,22% per month.
- BMG Bank – 1.52% per month.
- Sicoob SA – 1.58% per month.
- Banco Seguro SA -1.63% per month.
- Inter – 1,79% per month.
The interest rate percentages are in accordance with the BCB table up to the date of this post.
Loan with guarantee
THE secured credit is another loan model where interest rates are healthier.
In this option, you request the money and leave some asset as collateral, for example, a car, motorcycle, cell phone and house.
The asset left as collateral will be used normally, but cannot be sold, as it remains alienated until the debt is paid off.
Currently, rates for this type of loan vary between 14% and 29% per year. The rate secured by real estate is even lower, and can be charged from 12,55% per year at Creditas.
Apart from that, by leaving the property as a guarantee of payment, you can obtain higher amounts, ideal if your need is much greater.
Among the companies that offer this loan model, we can highlight, for example:
Conclusion
Still talking about the types of loan interest, may apply to this financial product default interest, if you delay payment of installments.
Therefore, in addition to choosing the lowest interest rates, you need to pay the installments on time, only then will you reduce the cost of the service and be able to organize your finances.
It is worth noting that in addition to interest, there are fees that make up the CET on loan amounts.
It is very important to check the values in the contract before finalizing the contract.
Read also🔜 What is the easiest loan for those with bad credit and how do you get approved?
