Fast personal loans vs. payroll loans

It is very important before requesting fast personal loans to know what is the option according to our needs. It is generally believed that payroll loans are cheaper than personal loans, however this is not always the case. In the following article we tell you more. The key? Compare the characteristics of both.

If you have been thinking about applying for personal loans fast, you have asked yourself which is the most convenient. The Bank of Mexico has put into operation at the beginning of June a tool that allows a correct decision to be made when comparing payroll and personal loans.

The first ones are granted to those workers who receive their salary through a payroll account in a financial institution. The main advantage is that the entity directly withdraws the amount of the fee when the employer disperses the payment. This type of credit represents a quarter of the total consumer loans in our country.

On the other hand, personal loans can be granted to any person, regardless of whether or not they have a deposit account in the bank where it is requested. The risk in these cases is greater for the financier because it does not have a guarantee to back it up. Likewise, 20% of Mexicans who apply for loans do so through this financing model.

According to the tool created by Banxico called Analysis of Credit Indicators, the average interest rate of personal loans granted by regulated institutions in the country is almost 36%. In some cases the interests are abusive and can reach 102% per year.

At the close of the first semester of 2017 in the country there were 6.3 million personal loans in force (for a balance of approximately 97 billion pesos). On average, each loan is 20 thousand pesos and the repayment period is around two years.

Do we lend personal or fast payroll?

 Do we lend personal or fast payroll?

Regarding payroll loans, Banxico indicates that the average rate in this system is 25%, although there are other more expensive ones that reach 37% and more economical than 10%. In the first two months of 2017, 2.5 million payroll loans were in force, for a balance of 138 billion pesos. The average motorcycle is 65 thousand pesos and the period of almost 4 years (42 months).

This tool helps us make a decision because it provides all the information related to the types of credits available in the market today. Greater transparency, fair competition and more benefits for users are other advantages.

The Analysis allows analyzing different variables related to credits such as interest rates, credit amounts and terms. It also helps us compare the services of different institutions.

It is generally believed that payroll loans are cheaper than personal loans but this is not the case in all cases. In addition to the Banxico tool, the public has at its disposal the Bureau of Financial Institutions.

That a credit has a lower interest rate does not mean that it is paid less when it is finished, since other variables such as commissions, insurance costs, clerk value, etc. must be considered.

Find quick personal loans according to our needs is essential. Maybe when we do not have a lot of time to make the decision we do not analyze all the variables. Therefore it is important to be aware of what happens in the financial world when we are not in economic trouble. Check online credits on our site.