If you plan to take out a loan, it is important that before throwing yourself into the pool, you know the main financial terms surrounding this product. In this way, you will have no doubt and you will know what you are hiring. Take paper and pen, we review the terms you should know when hiring your loan.
Projects in sight? Terms you should know when hiring your loan
You need to apply for a personal loan? Its the first time? In that case, you will see many concepts that may be completely new and unknown to you. But don’t worry, because for everything there is a first time.
When you consider the possibility of applying for a loan and you have no experience, it is normal for you to have doubts or even be afraid. After all, that ignorance is normal, because you are not familiar with it.
Of course, to make it much less effort, you can always try to familiarize yourself with the main terms you’ll hear when you want to apply for a loan. Here are some of the most important:
- Term: period of time to return the loan.
- APR: equivalent annual rate. It is the percentage that tells us what the loan will cost us, since it includes the TIN and commissions. Therefore, the higher the APR, the more we will have to pay for a loan.
- TIN: refers to the nominal interest rate. It is the real price charged by the borrower for leaving us the amount of money requested. It is an interest that is applied on the amount borrowed and depending on the risk of the client. You must also specify your period, annual, monthly, etc.
- Guarantee: guarantees the repayment of the loan money if there is a default. It can be a person or a property (eg a car or a house).
- Capital: the amount borrowed without counting interest and commissions.
- Amortization: cancellation / payment of the part of the capital that we owe.
- Commission: is what the lender charges for leaving your money. There are several commissions: opening, study, early cancellation, etc.
- Fees or letters: periodic amounts of money to be paid to the lender for the requested money.
- Lender: the entity or user that lends the money to another.
- Borrower: entity or user that receives the borrowed money.
Now that you know these financial terms associated with loans, it is important that you apply them at the time of contracting a personal loan, in order to know with which bank or financial entity you will pay less.
The APR is the percentage that tells us what we are going to actually pay for the loan, because it covers all commissions and interest. Therefore, you must take it into account when buying the different loans.
Your personal loan at Astro Finance
If you are looking for a reliable and safe place to borrow money, you can ask for your personal loan at Astro Finance. We are a fintech company of total trust and thousands of users who trust us every day; both when using our app to save and when requesting our financial products.
You can do a simulation from our loan website and then log in with your account to finish the process. From the app, once you connect your accounts you will get a Credit Score. Credit Score is the one who determines your financial capacity. The higher it is, the better your conditions will be.
Only by following these steps you can request the amount you need, up to 50,000 dollars to make any project a reality and return based on your needs, with a fully customized fee adapted to you.