When we look for personal loans we find not only a great variety of offers, but also different types of credits that we can request. Each type of loan is designed for a particular purpose and profile. What is an Online Direct Lender Payday Loan? We Explain.
5 types of personal loans
Below we detail the characteristics of each type of personal loan according to the amount they grant, their speed, which entity grants them, etc., so we can know what type of financing we need according to our profile:
1. “Traditional” personal loans
They are the credits that grant high amounts of financing. They are often used to finance projects such as buying a car, studying or renovating our house. Prices vary greatly depending on the lender, ranging from € 500 to € 100,000 and the repayment terms usually last for years. An example would be the ING Orange Loan, to get up to € 40,000 in financing at 7.18% APR, with no commissions and no need to pay the payroll. Your process is 100% online and in minutes we will get a response with a preapproval.
2. Mini credits
They are granted in just minutes and we can get up to € 800 instantly. They are used for specific liquidity shortages when unforeseen events arise (fines, overdrafts, breakdowns …). They are contracted through the internet with a web form and with hardly any paperwork. Depending on our profile we will have several offers, such as loans that admit people registered in files of defaulters or people without payroll. One of the most attractive offers at the moment is the Vivus mini-loan, which offers up to € 300 free to its new customers, without commissions or fees.
3. Quick credits
These products are very similar to the mini credits in terms of their concession, however, they offer us a financing of up to € 15,000. Like mini loans, they are contracted online through a form and without paperwork and are granted by private equity companies. They are used as personal loans granted by banks, but with a shorter grant time. One of the fastest loans is Zaimo with which we can get up to € 5,000 in 12 minutes, their interests vary between 5% and 12%.
4. Payroll Advances
We can request them from banks and allow us to get up to 3 times our salary. They are of quick concession, but to be able to accede to them we must have a bank account that has the option of the advance of payroll and a minimum of antiquity in the organization. One of the advance offers of the moment is the Payroll Advance Bankinter, with which we can access if we have a Bankinter payroll account and where we will be granted up to € 6,000 at 0% APR to return in 20 days.
5. Consumer loans
These are loans granted by department stores whose purpose is to encourage purchases, which is why they usually do not have commissions or are very low. They are used to buy items within the same establishment. We can buy from an appliance to a computer, through spare parts for the car. A large department store offering this type of financing is Carrefour with its Carrefour Pass Visa credit card, with which we can finance purchases of up to € 2,000 at 0% APR for 3 months.