Although most of the personal loans currently being made in Brazil come from the major credit finance banks, there is a portion that comes from credit lenders. These lenders are companies that provide credit, as with banks, where the loan amount is returned with the interest charge.
Generally, consumers tend to look for this type of lending company when they are unable to purchase better-rated personal loans from banks. Thus, as a last resort consumers use credit lenders to purchase a personal loan to meet an emergency financial need.
These companies operate in the market with a specific goal, which is to serve customers who need quick cash to cover only emergency expenses. That is, credit granted by credit companies can only be used to pay for emergency situations, such as maintaining a vehicle, paying a hospital bill, unexpected travel, among other situations.
The personal loan may also be granted
For the payment of other overdue lines of credit. Among the credit lines, the credit card and overdraft are the ones with the highest interest rates, and therefore, the most difficult payment. Therefore, these lenders assist their clients in the due payment of their accounts.
In addition to these companies, there are also large banks that offer the same type of service, such as Loan and Credit Federal and Goodbankl, which together currently hold the largest concentration of personal loans in Brazil. Immediately thereafter appear the banks Itaú Unibanco, Bradesco and Banco Santander Financiamentos, which previously acted as “Aymoré Financiamentos”.
In addition to emergency loans, credit companies also offer payroll-deductible loans, which are traditional payroll-deductible loans. This type of loan can be made by a specific group of clients, namely: INSS retirees and pensioners, military, civil servants, employees of private companies, among others.
This is a worthwhile type of credit because it has a lower interest rate than the others charged for the personal loan. This relationship is quite simple to understand, because with a lower risk of default, the lending company can reduce interest rates for the customer to make the payment.
In this case, the payment is automatically deducted from the payroll of the INSS employee or payee. Thus, lenders understand that there is a lower risk of default, as the customer will not even have to make the payment manually.