Payday Loans in Portugal: know all

 

 

 

Whether it is to make your dreams come true by buying a trip , a home remodeling or just to cover an unexpected expense, payday loan in Portugal can be a great help in addition to the monthly budget. Still, there are some cautions that you should keep in mind.

Simulate payday loan quick approval

Whether over the phone or the Internet, it is now possible to apply for funding relatively simply.

Payday loan is included in the consumer credit scheme and therefore, banking and credit institutions must comply with certain standards when it is granted.

Know the main criteria to consider if you are considering applying for a personal loan in Portugal.

What is payday loan in Portugal?

payday loan is a type of loan that allows you to request a specific amount of money and repay it every pay date through fixed installments over a certain period.

One of the criteria for regulating these loans is the value of maximum interest rates. The Annual Effective Charge ( APR ) can not be higher than the current value, set by the Bank of Portugal .

In view of this assumption, you must always inform the institution of the purpose of the claim. If your application is intended to fund studies , pay unexpected health expenses, or place solar panels at home, for example, the maximum fee will be lower than that applicable to other credit purposes.

If you do not inform the bank about the destination of your loan, the maximum rate applied may be higher.

What types of payday loan are there?

Consolidated credit

The consolidated loan is a type of personal loan whose goal is to join the monthly installments of several loans into one.

By aggregating a number of loans, you will get a smaller loan and get better financing terms (this will make your interest rate more accessible and the loan term will be extended). This is a way to avoid over-indebtedness and help manage the family budget better.

Specialized Credit

A specialized credit , whether it is to finance studies, travel or pay for health care, must always be communicated to the bank so that it can obtain the most favorable financing conditions for the purpose it seeks.

Both the APR and the methods of payment and the amount of the monthly installment differ according to the type of credit requested.

Fast credit

The rapid credit is characterized by a process more agile and simplified approval to provide the money in your account. The request is usually made by phone or online and you can expect to get a response from the bank in less than 48 hours.

In addition to speed, this type of financing is distinguished by the ease with which it can be requested, since it does not need to change banks to do so.

What care should you have?

When hiring a personal loan you should measure the impact of the monthly installment on your family budget, since this monthly allowance will be maintained over an extended period of time.

Before making a final decision, we advise you to compare the various options available in the market, making sure that you contract the credit that best suits your possibilities.

As a customer, you have the right to be informed about all the characteristics of the product you are contracting and that must be included in the Normalized Information Sheet (FIN). The financial or credit institution has a duty to help the client to understand this document and to clarify additional doubts.

It is also a right of the consumer, if he wishes, to withdraw from the credit agreement within a maximum period of 14 days from the date of signature, without it being necessary to indicate the reason. By giving up the credit application you will have to repay the loan amount and pay the interest due within 30 days.

You can also proceed to early repayment of the loan amount. To do this, you must inform the credit institution at least 30 working days in advance. If the loan is a variable rate, you will not be charged any early repayment fee.

However, if the contract is fixed rate, the early redemption fee will be charged to you in a percentage of up to 0.5% of the amount of the capital reimbursed, if more than one year is left before the end of the contract, or up to 0.25% if one year or less is missing.