What loan can you take with your salary?

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There come situations in life where asking for a loan is not only a great help but also a way to achieve certain goals. Buying a home, financing a master’s degree, investing in materials to grow the business… are just a few examples. “However, before asking for it, it’s important to ask yourself: Can I afford this loan?I have the financial capacity To face installments or am I being too fair?”, insists financial buyer’s personal finance experts HelpMyCash.com

According to experts, there are five key factors to be kept in mind before requesting a loan. And that is, if banks take into account the loan ratio of the customer while giving the loan, then the logical thing would be that whoever asks also knows whether their financial condition is adequate or not.

bank customer signing the mortgage

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“Being heavily indebted is a risk that should not be taken. If an unforeseen event occurs, it will not be possible to continue to meet the obligations and this includes late fees, sanctions, list of defaulters…”, he tells HelpMyCash insist from .com

According to finance experts, ideal is Don’t dedicate more than 35% towards payment of the total of loans. “We refer to mortgages, personal loans, cards and any other debt that we have,” he says. And if you don’t have a mortgage, your debt ratio should be 20%.

Five Keys to Keep in Mind

1. Loan Amount

The first question the borrower should ask is how much money do you need? You need to be able to clearly describe the purpose of the loan in order to answer. Lending to satisfy a whim or whims is not a good reason.

2. Can you afford the monthly payment?

This is undoubtedly the most important question. If the monthly payment of the loan exceeds the amount managed or allowed, penalties and late fees can accumulate quickly.

It is important to know the debt-to-income rule before taking out a loan. It is nothing more than the amount owed in respect of the amount earned or recorded. Ideally, the loan does not exceed 35% of the income.

3. Loan Type

After deciding on the amount of loan required, the next step is to assess what type of loan would be most suitable for your situation. whereas a personal loan Can be used for anything from home repairs to consolidating high-interest credit card debt, a student may be best suited for recording a master’s degree—plus, interest rates are usually low. Huh.

From the comparator, three of the most attractive personal loans on the market stand out: “orange loan from ING, fast online loan without documents from BBVA and Cofidis Personal Loan They are what they offer with the lowest interest rates and low commissions. In this sense, Cofidis stands out for its competitive interest rate from 4.95% NIR (5.06% APR), also has no opening commission and can be requested 100% online and without paperwork. Nor does it require direct debit of payroll nor does the entity have to have an account. The minimum amount is EUR 6,000 and the maximum is EUR 60,000 which is to be repaid over a maximum of 10 years.

4. Interest Rate and APR

A loan has two interest rates. On the one hand, there is interest which is calculated as a percentage of the outstanding amount of the loan and included in the amount of the monthly payment, this is known as TIN (nominal interest rate). On the other hand, there is the equivalent annual rate (APR), a percentage that is calculated in accordance with the guidelines of the Bank of Spain and which takes into account additional costs that the bank may charge, for example, for commissions or insurance. .

“In other words, the TIN is the interest rate you’re going to pay each month—which is why it’s most important—while the APR only matters to you if it’s very different-higher than the TIN. If the percentage is very different, it’s a clear wake-up call. Read the small print carefully dividing the additional costs involved in the loan. We always recommend negotiating with the unit, perhaps you’ll want additional insurance or less Can avoid getting commission”, he tells HelpMyCash.

5. Advance Payment

Some loans have what is known as a prepayment fee (or penalty), which means that if you decide to pay off the loan early, the bank will charge you a fee for it.


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