Where to apply for a personal loan: advantages and disadvantages

Requesting a personal loan carries an important responsibility.

 Pros and cons of the personal loan

And this is because a debt is contracted with a financial institution, and we must be in a position to face it once the term expires. Therefore, before applying for a personal loan, we must know what are the options we have, and what are its advantages and disadvantages:

Pros and cons of the personal loan

Bank entities

  • Advantages: The best thing about requesting a personal loan from a bank is that we can get much larger amounts of money. We would be talking, for example, mortgages or credits to buy a car.
  • Disadvantages: First, the obstacles and obstacles that hinder obtaining the loan, starting with guarantees such as payroll, endorsements and others and ending with the amount of paperwork that is necessary before the loan is granted.

Public bodies and groups of investors

  • Advantages: In the case of public bodies, they usually offer a somewhat lower interest rate. On the other hand, private entities offer a greater margin of negotiation.
  • Disadvantages: As when applying for a personal loan through a bank, the main drawback is the amount of paperwork to access the credit, which is a great slowness when granting the loan.

Quick personal loan entities

  • Advantages: If what we need are small amounts of money, they have many more advantages than the other options. Among them we find the speed both when granting the credit and when returning it, especially if it is a personal loan over the Internet, or the absence of paperwork, since in the case , no payrolls or endorsements are required, only the DNI .
  • Disadvantages: The main drawback is that the amounts of money in fast personal loans are usually much lower than those offered by a bank.

Now that you know all the pros and cons of the various lenders to apply for a personal loan you will not go wrong in getting your credit.