7 Loan Things That Don’t Tell You Around

When a customer searches for a loan at Fundico, they receive all the information about the product they are about to contract. Our intention is always to make everything very transparent to our customers, but not everywhere.

Understand Your Loan

Understand Your Loan

We often hear the question “what is Fundico’s interest rate?” But the truth is that besides the interest rate it is very important to know the total effective cost of your loan. This is because there are financial institutions that charge various fees and, therefore, the comparison is not fair.

With that in mind, we have separated some very important loan information that is often not told to consumers.


1. Always Compare CET

The CET, or Total Effective Cost, is the rate that already considers all loan costs. This means that by knowing him you can know exactly how much you are paying for that credit. We even explain here on the blog how to calculate the CET of the loan.

The fact is that there are institutions that charge different rates of the consumer who is seeking credit and if he compares only the interest, may end up choosing an offer that will be more expensive in the end.


2. Online loan is reliable

Online loan

Yes, taking out a loan online is a safe and reliable option, as well as seeking credit from a bank. All it takes is for the consumer to beware of potential fraudulent websites.

One of the main tips is never to make advance deposit for loan release. If a company has asked for this, be careful as this practice is illegal. It is essential to notify the competent bodies if this happens.


3. Customer has the right to regret

According to the Consumer Protection Code, the customer is entitled to repentance of the loan taken off the premises. However, it is very important to respect the deadline for withdrawal.


4. Advance of installments generates discount

3. Customer has the right to regret

When you take out a loan or finance it is natural to pay interest, after all you are taking credit to anticipate money you do not have. The fact is that the total time for repayment of the installments is considered in the loan agreement and when the customer anticipates them, he is entitled to a discount.

It is worth noting, however, that it may be the generation of a new billet.


5. Overdraft is also a type of loan.

Yes, overdraft is a type of loan. In this case, the customer has a pre-approved credit amount in his checking account which when used generates high costs. That is, overdraft is not a smart type of credit. It is not worth paying this interest considering there are other loan options that are cheaper.


6. You can compare the average bank interest rate on the CBB website.

bank interest

If you want to know where to find the cheapest interest loan, and always check your rate at Fundico, it is worth checking the Central Bank website.

There is a list of the average interest rate applied by banks over a given period of time. With this information in hand it is easier to make comparisons. Just don’t forget to always look at CET as well.


7. Loan is not always the best option.

As we have said many times, we value transparency for our customers. In fact, the loan is not always the best option, especially if the consumer has a saved money that can move. This is because it is very difficult for an application to earn more interest than would be paid on the credit taken.

Still, there is smart loan and it is quite valid especially if you are changing debt. Trading a more expensive debt for a cheaper one is a great way to reduce your debt and not lose money.

If you have questions, talk to our team of advisors who will ask you questions about lending and when is the best decision.

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