Are you one of those who think that to be granted a loan it is necessary to go through a bank? That we have to present a lot of documentation and that most likely they will tell us no? Or maybe you are one of those who believe that loans are something only for those who are going to buy a house? Don’t you know consumer loans? In this article we tell you all about it!
For starters, the truth is that none of these ideas is true. Consumer loans are becoming more popular among people and, especially, among those who want to renovate the house. But what exactly is a consumer loan and what is it used for? In this article we will tell you carefully and we will also give you examples in which it is very convenient to resort to this type of figure to finance first-order needs.
First, a consumer loan is not granted by a bank, but is usually granted by an entity such as Ikea or Alcampo when you buy a piece of furniture or buy a computer. On these occasions, we can be in front of loans with an interest (which is the most normal) or, even, we can be in front of loans that do not have any type of interest. Well, the advantage for these companies is not so much in the interest they are charged as in the fact that we acquire a product that we could not otherwise acquire. But these are not worth many things we need, such as renovating the house.
The consumer loan and its use
Thus, we can see how the consumer loan is especially used in the cases of department stores that offer expensive products that we can comfortably pay. But this is not the only case. For example, another way we can have a consumer loan is when we buy a car. On this occasion, what we do each time we repay a letter of it is to be repaying this consumer loan.
When making home renovations, for example, it is very useful to take out consumer loans. As they allow us to enjoy the renovated house from the first moment and also allow us to extend the payment during the following months, making our economic situation more comfortable and much more comfortable for all family members living in it.
Among the main advantages of a consumer loan stands out the ability to advance payments. Thus, taking the car as an example, if we do not opt for a loan, we will not be able to pay the car until we have saved enough, so we will be losing even more money – for example, paying for public transport – instead of being able to benefit from it from the first moment
Another advantage of consumer loans is the immediacy with which they are granted. Compared to other financial products such as bank loans, this type of credit does not need any type of check or verification . Paperwork is minimal and much more agile. In fact, it is perfectly possible to get one of these loans on the same day.
Unlike other loans such as mortgages, consumer loans are not taxed with any type of taxes, so their acquisition is much easier and cheaper. This means that more and more people are turning to these types of financial products to make their projects come true.
Reforms and consumer loans
When making home renovations, the bank rarely takes into account the needs of the tenants. Whether we are making reforms more than necessary in our old house or if we need to make them in the house from which we are still paying the mortgage, the truth is that consumer loans can be a very good solution for both situations.
The bank, when it grants us the mortgage, only finances the apartment and its acquisition and in no case imperative needs that we can have such as reforming the kitchen, removing the gotelé or expanding the rooms and changing the distribution of the apartment. Why should a family wait? These types of works can be paid comfortably throughout the months and enjoy them from day one. In this way, by opting for a consumer loan we can benefit from the reform from day one.
Unlike mortgage loans, consumer loans are usually for much smaller amounts. However, these are large enough amounts to finance the most ambitious home renovations: a kitchen, a bathroom, a porch or a complete renovation of the house can be perfectly causes to hire one of these financing products so flexible and tools.