Some people have doubts when asking for a personal loan because they are afraid that interest will be too high.
In reality, the interest of a personal loan depends largely on who is the one requesting the money. So at present to have an affordable financial cost we must pay attention to other factors, for example the interest rate and the total financial cost.
The total financial cost is the most important of all, because it is, in short, what you are going to pay in total. How is it calculated? The interest rate is added to the charges for the costs of the operation (insurance, commissions, etc.).
Our advice is that you look at this number more than anything else: the financial cost is more important than the interest rate, because it may happen that a loan with a higher interest rate is the one with the best Total Financial Cost .
What exactly is the interest of a personal loan?
As you know, the interest on a personal loan is the money you pay to use a foreign capital. To calculate the interest amount of any loan, the following points must be taken into account:
- The time for which capital is lent
- The interest rate
In general, interest is reflected in percentage form, for example: 3% interest, and is usually presented in daily, monthly or annual terms.
What are the percentages of interest rates in Argentina?
Answering this question is not a simple task. Why? Because the rates vary from bank to bank and are tied to a changing economy like Argentina. The important thing is that, before applying for a loan, you look at the bank that has the lowest interest rate at the term that suits you best.
As you probably know the options are almost innumerable. Let’s see some examples. Suppose we access a loan of half a million pesos. In addition to the rate, we must take into account the cancellation period, if it is flexible, at the customer’s option or not, etc.
Then you have to check if the bank really gives us an extension or not in case we fall behind with the payment of the fee. This is important.
Some banks give up to 90 days without added interest. If you see a bank that offers this, it is a good sign and you should add it to the positive balance.
Now we go to the complicated: the cost of financing. Here are two important points: the annual nominal rate (should be of the order of 45%) and whether or not it is a fixed interest rate. But that’s not all: watch out for the total financial cost. Sometimes, together with all expenses, it reaches 60% per year.
Are you a little dizzy? It happens to all of us. The credits of traditional banks are complex. But take some air because this continues. To everything we told you we must add a commission of 4% in advance. Of course, this is in most banks. If you find one that doesn’t charge you, much better!
If you are a self-employed worker or a monotributista, perhaps at this moment you are wondering what happens to you. In traditional loans, workers in a dependency relationship tend to have more advantages than freelancers. But many banks accept monotributistas as potential clients. In general, you only have to present the latest proof of payment of the monotax, that of the CUIT and an invoice of a public service in your name.
Regarding seniority, for workers in a dependency relationship, it is at least one year, and at least two years for monotributistas.
What are the interests of Money4Keeps?
The amount that our customers are going to pay depends basically on two factors: 1) The amount of money you asked for 2) The time you requested for the money back
Money4Keeps gives you up to 30 days to pay (or a little more if you ask for an extension), but the longer the term, the greater the amount to be returned.
To know what the final amount you will have to pay will be, use the loan calculator that is inside your account once you enter your profile in Money4Keeps. If the final amount does not convince you you can choose not to apply, if it fits your budget the final amount will not change unless you request an extension or delay in payment.
The best thing is that you will not waste time trying the system, because one of the great advantages of these types of credits is that they are fast and zero complicated. You ask what you want, you decide the deadline and send the request.