Essential tips about personal loans: find out more!

If you're in the group that needs help, we at Geniuzz have prepared a short guide with important information you should know before taking out a loan. 

Our mission is to help you make better decisions for your financial life!

What is a personal loan?

A personal loan is a product offered by financial institutions, primarily to those who lend money to the applicant (also called the service recipient), without the need to prove the purpose.

Thus, it is a credit transaction between the institution and the customer, supported by a contract. The customer receives the previously established amount, with an interest rate. The amount must be repaid within the period specified in the contract. 

This product is a practical solution for those who need cash urgently for various purposes. Most often, it's requested to resolve an emergency, pay off debts, or get out of a credit card revolving credit balance or overdraft. 

How to apply for a personal loan?

Furthermore, to apply for a personal loan, the main requirements are to be over 18 and have an active CPF (Brazilian Individual Taxpayer Registry). Additionally, it's necessary to present an identity card (RG) and, in most cases, a bank account. For most options, the applicant must provide proof of income. 

The first step to obtaining a loan is to submit an application to the company you choose. Currently, there are many online loan options, eliminating the need to visit a branch and fill out numerous bureaucratic forms.

After this first step, it's time for the bank or financial institution to evaluate your application and your history to decide on the risk of granting credit. 

What is the credit analysis like?

Upon receiving your personal loan application, the company you choose will perform a credit analysis to better understand your profile. 

After all, since you don't know each other, it's important to establish alternatives to understand your purchasing behavior and market history. 

What you need to know about personal loans

In general, personal credit analysis is divided into five stages:

1. Request for registration data;
2. Analysis of restrictions on your behalf;
3. Credit profile analysis (including score);
4. Analysis of your income commitment;
5. Analysis of documents.

Loan approved, what now?

After the credit analysis, your application will be approved or rejected. If rejected, consider reviewing your expenses and seeking alternatives to earn extra income. 

If approved, you must follow the steps requested by the company granting the loan. In both in-person and online processes, you'll be required to sign the contract.

The document will contain all information regarding the loan agreement. The main contract information will be:

• IOF (Tax on Financial Transactions);
• Number and value of installments and interest rate;
• The amount you will receive;
• Payment method for installments (account debit, bank slip or post-dated check);
• CET (Total Effective Cost), which is the total cost of the loan in annual interest rate format, including all fees, charges and taxes. 

Do I need to make any advance payments?

After all, there is only one answer to this question: NO! 

Never make any type of advance payment to obtain a personal loan. Be wary of advertisements and companies offering "offers you can't refuse." 

The number of fake loan scams is increasing in Brazil, especially with proposals involving very low interest rates and easy conditions for those with bad credit. 

The most common arguments scammers use to obtain advance payment are: IOF (Tax on Financial Transactions), loan insurance, and exchange rate. If you suspect you're being scammed, end the transaction immediately. 

I got the loan, now what?

The most valuable tip is: pay your personal loan installments on time. This way, in addition to honoring the commitment you made to the lending company, you'll establish the image of a "good payer." 

Seen this way, you will have an easier time acquiring credit again, not only in the form of loans, but also in financing, credit cards and even when purchasing your own home. 

If you earn enough money over the course of your loan repayment, you can do so early. This way, you'll be free from this worry and also save a significant amount on the interest that would be charged on future installments. 

So, did you write everything down? 

Now that you're ready to apply for a loan, how about checking out Supersim's personal loan?