Who can apply for a loan?
March 6, 2020
Those who are over 18 years old, are born in Brazil, have an active CPF, hold a bank account and are able to prove income can apply for a loan. On the other hand, the country banks, financial institutions and regulatory authorities are not so clear about the age limit for accessing credit.
Relationship between loan and age
Most institutions that offer personal or collateralized credit usually set an age limit for releasing money. Generally, deals are more easily closed with people up to 70 years old.
The main argument used to limit this release is that the older you are, the greater the risk of not paying off the debt. And the last thing that institutions want is someone who will not pay.
But in times of greater competition and the entry of other representatives (such as fintechs and digital banks), it is possible to have access to credit even at an older age. The only problem is that interest rates may be higher because of the risks involved in the transaction.
As for the payroll loan (with the installments discounted directly from the payroll of the civil servant or the benefit of the retiree), one of the conditions to release the money is to be less than 80 years old.
Why does it take 18 years and active CPF to apply for a loan?
Before hitting the hammer and authorizing the loan, companies usually check the applicant’s background. This consultation would be a kind of protection, to avoid losses if the customer does not pay.
The risk is usually less when the client does not have a dirty name and when he honors the financial commitments made.
But, as this possibility can be broken at some point, it is important to guard against it. One of these guarantees is to select the people who can be found easily, the ones who really are who they say they are and still manage to provide sufficient financial conditions to repay the loan.
That’s when the client’s requirements are to be over 18, have a CPF active and be Brazilian. This facilitates the execution of extreme actions, such as suing you in court in case of non-payment. Have you thought about the difficulty of doing this if the person did not have the document or was a foreigner? The headache could be greater than the return.
Documents for applying for a loan
This fine-tooth comb in the life of those applying for a loan continues with a list of documents requested (such as ID, proof of residence and proof of income) by companies. These papers help to confirm who is asking for the credit, where it can be found and what the real ability to pay is.
In a few days – in some cases, in hours -, the company grants an answer and releases or not the requested money. The transfer is usually made in a checking account pre-indicated by the client. Depending on the company conducting the process, it may suggest that the destination indicated is an account at the institution itself. This can help you increase the bond with the borrower.
In some situations it is possible to try to earn more by ensuring that you receive an account maintenance fee. Another source of income may be the payment of bank fees to move the borrowed money.
And what are the precautions when applying for a loan?
With the increase in the total number of companies offering personal credit and other types of loans, it is important to compare prices and always seek the best offer. Another facility with the modernization of systems is the possibility to make these consultations without leaving your home.
Almost everywhere you can apply for a loan usually has online platforms. In them, it is possible not only to send documents and negotiate the contract, but also to make simulations of interest, amounts that can be taken and the total amount.
In addition, it is important to be aware of the interest that is charged and if the company is usually transparent in this matter. By law, it cannot hide what the Total Effective Cost of the loan will be (interest plus all other expenses involved in the process, such as fees and operating costs), but we know that some of them make it difficult to access this information. in a confused way. This means that when the parcel arrives, the customer gets scared.
This behavior also applies to those who have already closed a loan. It is possible to renegotiate terms with the manager, even more if there is a more advantageous offer. Most importantly, it is possible to port the loan between institutions. The process is very similar to what happens in the telephone system.
And a golden tip: as Good Lenders is very familiar with the users’ earnings and expenses routine, it usually offers the best conditions for that specific moment. This is also true for the loan, with partners who are on the application’s online credit platform and usually offer better terms than those of the users’ home bank.