Young people who are 18 and up are the earliest group to borrow money from the finance companies. Young people in the start-up phase often have some difficulty getting the economy going every month. It is not uncommon for unforeseen bills or expenses to appear. But don’t worry, many banks and finance companies have long experience of just this and are ready to help you if you feel you are struggling to get your money stretched every month.
What types of loans can you take?
If you are struggling with poor advice at the end of the month, a micro loan may be the solution for you. This is a small loan on which you make a lump sum when you repay it. A fast and efficient loan for those who usually have a stable economy, but may have an unforeseen expense in the mailbox.
However, if you need a little more money to maybe buy your first car or renovate your first apartment, a slightly larger consumer loan solution is for you. You can use this loan as you like and you get longer time on the repayment.
Repayment of the loan
As interest rates are higher than normal on these types of loans, it is always recommended that they be repaid as soon as possible and avoid payment deferral or interest exemption. If you have extra money a month, it is profitable to pay extra on the loan. How much the installment is on a month depends on your personal finances. Different banks have different criteria for granting loans.
The bank will review this with you. A longer repayment period will result in lower repayments, but higher costs over time. A shorter repayment period results in higher installments per month, but lower costs over time. Think carefully about what is best for you.