Loan or financing: what is better and what is the difference?

If you are looking for sources of credit, there are two ways to get money in the square, you can opt for loan or financing. The two modes have advantages and disadvantages. Therefore, we separate some information on which is the best option. Check out the article below and see which one best suits your situation.

Loans x Financing

What is loan?

What is loan?

The loan is a form of credit that has no restrictions on its use, ie it can be used for anything. In this mode, the only rule is to pay the amount with interest that is accounted for according to the way it was successful.

You can borrow from banks and financial institutions. Because it is a popular mode and easier to obtain, the interest rates applied are higher than in a financing. This is because the credit analysis is exempt, the only concern being that the customer will pay the lender.

There are several loan and financing options available in the market.

What can I do with a loan?

As the loan does not need to have a single purpose, you can use it to:

  • Pay the credit card;
  • Pay the overdraft;
  • Remove debts;
  • Buy goods;

What is financing?

What is financing?

Financing is the type of credit most chosen for those who want to buy a property or car, but it is more bureaucratic. Because it has a single purpose, credit analysis and the justification of the use of money are analyzed with great caution. Banks and financiers also function as lenders for financing.

Also, pay close attention to CET (Total Cost of Credit). This index will show all fees charged on the financing and other charges charged that vary from bank to bank.

What is the best option?

To decide which mode is best for you, it is important to keep in mind what the purpose of the credit will be. After that, check the interest rate. According to the 2016 data of the credit report of the Central Bank of Brazil, the average interest rates for auto financing and payroll loan were:

  • Financing : 26%;
  • Paycheck-deductible personal loans for civil servants : 27.3%.

Remember that they are average values, that is, they are variants and close to the values ​​made available.

Therefore, applying for a loan or financing depends on your need. If you want to request a more flexible mode and use the money without having to justify to the bank, the loan is the best option.

However, if you want a broader and faster mode, without having to justify borrowing money, financing is the best option. But, it is necessary to organize and control your parcels, because in this modality your property, as a property or car can stay for the bank, if you do not pay the parcels correctly.

To decide which one is the best option for you, evaluate what the terms of payment are and what purpose you will use.

How to request the modalities?

Loan

Loan

It is possible to take out loans without leaving home, but before that, make sure the company is reliable, look for referrals and testimonials from those who hired your services. After that, evaluate how much you really need and whether you will be able to pay the amount.

Preferably, search in more than one location for the credit amount, the interest rates, and the term to pay. Thus, you will have a wide range and will choose the best shape for you.

If you are interested, you can consult the loans of the companies:

Moneyman

Moneyman is an online fintech that carries out the whole loan process via the web. The company functions as a correspondent banking, playing the intermediary role between the users who access your site and the banks that offer loans.

At Moneyman’s website, the user can simulate the value and term of the loans quickly and see which is the best option for him among the banks that offer the credit. After the loan application, the data is sent to the chosen financial institution.

The approval is made within 2 hours, and after that the credit is sent to the account of the applicant. There is no need to send documents in the request by the site, in MoneyMan there is no paperwork.

One of its advantages is that it offers a loyalty program, which by adding points, you can get a loan with discount on the interest rate.

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