According to rumors, how to borrow money from a bank is complicated. It’s different from borrowing money from friends who just say. Or go into debt to an online loan with just one-two clicks, upload the required documents, you’re done!
When you need money urgently but your savings are inadequate, looking for a loan is sometimes a way out. For some people, borrowing from the closest person may make them proud. The options are narrowed into two, loans from bank or non-bank financial institutions, such as fintech (financial technology).
For convenience, online fintech loans are thumbs up. However, if you are looking for a loan with the lowest interest rate and are guaranteed to be safe, borrowing money from a bank is the best choice.
Don’t believe right away if someone says that how to borrow money at the bank is a hassle. Better to try it yourself and prove the truth.
Know the types of loans at the bank
Different loan objectives, different loan products at the bank are taken. Therefore, before knowing how to borrow money at a Payday Loans, let’s first identify the type of loan needed.
There are many types of bank loans. However, for products that fall into the cash loan category, there are at least two types of bank loans to choose from, namely unsecured loans and secured loans.
1. Collateralized loans
A secured loan is a loan that can be used for various purposes, provided the debtor provides collateral or guarantee.
Goods or assets that can be used as collateral are quite diverse, ranging from home certificates, motor vehicle ownership books, to investment products, such as deposits and bonds.
With secured loans, the loan amount depends on the collateral provided. The range is from 70-80 percent of the collateral selling value.
2. Credit without collateral
Credit without collateral is not much different from online loans from fintech (financial technology). Both of these loans do not require collateral, making it easier for anyone to submit.
However, bank interest can be three times lower than the interest and fees for online fintech loans. interest ranges from 11.8-24 percent per year.
How to borrow money at the bank easily
From the explanation above, do you know what type of loan is most suitable for your conditions?
For funds that are not too large, bank is a more ideal choice. Because, the process is fast, the ceiling is adequate, with requirements that are easy to fulfill.
Meanwhile, for large funding needs, for example over $10.000 million, you should choose a secured loan. This loan product does have a more complicated process. However, for large-value loans with long tenors, the interest expense charged is much lighter than .
If you already know, the next step is to understand how to borrow money from a bank that is the best and most effective way to accept. Here are the steps.