Sometimes we require extra money to cover a need and this insufficiency of money can be solved through a financial product known as a bank loan, which has interest rates, payment terms and required guarantees that will depend on the financial institution to issue it.
In many cases, the bank can ask the debtor for a guarantee or endorsement in order to access a loan. Banks offer borrowers some ways to cushion the amount of money they have to pay, for this the following methods can be used:
Unique installments: They are made to pay all the capital together with its interest in a single payment.
Variable installments: These are payments whose fluctuation is based on a reference index.
Constant installments: These are quotes that are made with a fixed amount throughout the established term.
Bank loans: what you have to know
Advantages of bank loans:
- Provide the amount of money that is needed.
- It adapts to the financial situation of the borrower.
- It allows you to cover several needs at the same time.
- They are relatively fast.
- You can know the amount owed at all times.
Among the disadvantages we have:
- Demand for payment of interest.
- It requires a guarantee or guarantee.
- You have an established deadline to cancel.
- The guarantees given may be lost.
Alejandro Enrique Esis Urdaneta 