A money loan is a financial service that is provided by banks, financial institutions, or individuals. Although apparently all money loans offer the same, there are different types, which have different characteristics, requirements and conditions.
When choosing a loan, it is important that, as with other products, you take the time to research and compare the options available in the market. At Volana we want to help you manage your personal finances in a responsible way, that’s why we share information about the main options you have when you need a loan.
This type is known as collateralized loans, that is, the institution you go to will lend you an amount of money in exchange for leaving an item in guarantee, which can be jewelry, household appliances or even automobiles and property deeds. Many people turn to pawn shops because the loan is delivered in cash almost immediately. However, when applying for loans with pawnshops you risk losing your assets if you fail to pay on time.
In this case, it is individuals who offer the loans, or personal loan lenders. Lacking a legal figure before the Condusef, the clients of the lenders cannot request the support of any public institution if a controversy arises in the loan agreement. Although many people see the fact that lenders do not consult the credit bureau as a great advantage, this is an indicator of the irregularity with which these types of money loans are handled.
Depending on the way they are processed, there are two types: traditional and online.
- Traditional loan: it is a much safer option than the previous ones and is usually backed by well-established financial institutions. The problem is that the procedures must be carried out directly at the branch and, generally, take several weeks.
- Online loans: Thanks to advances in technology, fintech companies now offer online loans that can be applied for without leaving home. In addition to being a very safe loan option, it has the great advantage of providing a response in a couple of hours. Depending on the company, clients can receive their loan in less than a day, or even in just a few minutes.