Loans with personal or real guarantees, what are they?

In the market there are different types of loans and each of them has its own characteristics, therefore, when deciding on one or the other we must analyze them to make the right decision. One of the main characteristics of the loans is the guarantee provided, which can be personal or real, depending on the scope of the property liability we assume to ensure payment. Next, we are going to tell you what types of loans we can find in the market and how a personal guarantee loan differs from a real one.

 

What types of loans are there in the market?

money loans

The first thing we should be clear about are the types of loans that we can find in the market today.

There are many ways to catalog loans, but two of the main ones are the following:

Types of loans depending on the type of guarantee

Loans with personal guarantee

They are those in which the debtor responds with all his personal assets, present and future but without affecting any particular asset to the loan. The debtor can continue acting on all his assets without limitation. (eg sell them, tax them, donate them …,). The Bank, in this case, has no preference over the client’s equity, so that, in the event of default, the recovery is more complicated since the debtor, as he can freely dispose of all his assets, may lack equity with the client. to respond at the time of claiming the debt.

This type of guarantee, called universal liability of the debtor, is present in all loans.

Loans with real guarantee

They are those in which, in addition to the personal guarantee, a specific asset, movable (eg shares) or real estate (eg housing in case of mortgage) is affected as an additional guarantee of financing. In this way, this good is “reserved” in guarantee of the loan, so the client has limited disposition (eg, he cannot sell them freely) and the Bank has preference to execute it over other possible creditors, which gives greater security in debt recovery in case of default.

Loan rates based on interest rate

In addition, loans may also be different depending on the interest rate they apply. There are two different typologies:

Fixed rate loans

A fixed interest rate (the same percentage on capital) is applied and the installments will be constant for the entire duration of the loan.

Variable rate loans

In this case, the interest rate will vary based on a benchmark index, which is usually the Capital lender and, therefore, the installments throughout the life of the loan will vary depending on the evolution of that index.

 

Types of loans at Fine bank

money loans

Fine bank offers its clients loans with personal guarantee and real guarantee.

Freedom + loan with personal guarantee

  • Minimum amount: $ 1,800
  • Maximum amount: $ 20,000
  • Interest rate: Capital lender 3 months + 7%
  • Commissions:
    • Opening commission: 1% (minimum $ 50 and maximum $ 200)
    • Study commission: It does not have
    • Cancellation fee: You do not have

Loan with real guarantee from Fine bank

  • Minimum amount: $ 1,800
  • Maximum amount: depending on the amount of the guarantees provided by the client
  • Interest rate: from Capital lender 3 months + 1.95%
  • Commissions:
    • Opening commission: 1% (minimum $ 50)
    • Study commission: It does not have
    • Cancellation fee: You do not have
    • Notary cost: assumed by Fine bank

 

How does the loan with real guarantee from Fine bank work?

credit loan

In this type of loans, the client provides as a guarantee a savings or investment product managed and deposited in Fine bank (for example, an investment fund or savings insurance).

This supposes several advantages for the client among which stand out:

  • In case of needing resources, the client, instead of selling his savings products, can obtain the necessary financing without renouncing the profitability that can be generated (dividends, etc.)
  • The fact of providing these additional guarantees to the Bank in compliance with the loan also allows obtaining financing at more advantageous interest rates (from 3-month Capital lender + 1.95%)