What type of personal loan suits me?

May 10, 2023
What type of personal loan suits me?

No matter your plan or project, whether it be going on a family vacation, consolidating debt, or covering back-to-school expenses, there is a personal loan that fits your needs.

What should I consider when selecting a loan?
When selecting a personal loan, you should consider the following:

  • Monthly payment: You must feel comfortable with the monthly payment amount and be sure you can take on this new credit responsibility. You should also consider your other payment commitments and apply for a reasonable amount to cover those needs you have identified in advance.
  • Interest rate: The interest rate assigned to your loan will depend on your credit history and ability to pay, among other things. If you have no credit experience, there are loans that can help you establish it.
  • Type of collateral: Refers to the payment guarantee needed for certain types of loans. Some products require cash or funds from a savings account.
  • Loan term: The amount of time you will pay the loan. This period ranges from one to ten years, depending on the type of loan and the amount you borrowed. Consider how long you will be committed to a monthly payment and how this will impact on your budget.

A type of loan for every need

The personal loan that is right for you will depend on whether you have a credit history, the quality of your credit experience, the amount you want to borrow, the applicable interest rate, and whether a payment guarantee (collateral) is required.

There are secured and unsecured loans.

You may be asking yourself, what is the advantage of one over the other? A loan that requires collateral, be in the form of a savings account or a certificate of deposit (CD), can offer a lower interest rate and covers your debt if you cannot pay. When the loan is paid off, the collateral and the interest earned are released. Loans that do not require collateral usually have a higher interest rate. Now let’s discuss the types of personal loans available:

Unsecured loan

Ideal for consolidating debt, going on vacation, making home improvements, covering back-to-school expenses, celebrating a special event, or paying medical expenses. You can borrow from $2,000 to $75,000 over a term of 12 to 84 months (1 to 7 years), depending on the amount of the loan. This type of loan does not require collateral.

Secured loan

It features a low fixed monthly payment when you provide cash collateral. As an advantage, you continue to earn interest on the loan collateral. If the product selected as collateral is a CD, the collateral and interest will be released when the loan is paid off. However, if a savings account is used as guarantee, the collateral is released while the loan is being paid.

You can apply for a loan ranging from $2,000 to 100% of the account balance offered as collateral over a term of 12 to 120 months (1 to 10 years), depending on the amount of the loan.

CrediSavings loan

If you do not have a credit history and want to establish one, this loan is an option. With this alternative take the approved loan money, places it in a certificate of deposit (CD), and you will pay according to the term you choose. The certificate of deposit becomes the collateral, and it will earn interest during the term of the loan until the last scheduled payment. Once the loan is paid off, the money from the certificate of deposit will be disbursed to you, plus the interest earned. You can apply for a loan ranging from $2,000 to $10,000 over a term of 12 to 72 months (1 to 6 years), depending on the amount of the loan.

Partially secured loan

It offers a lower interest rate than an unsecured personal loan by contributing part of your savings from a certificate of deposit as collateral for the loan, while continuing to generate interest. When you pay off the loan, the collateral is released in addition to the interest earned. You can apply for a loan ranging from $2,000 to $75,000 and pay over a term of 12 to 84 months (1 to 7 years), depending on the amount of the loan.

What are the requirements to apply for a loan with us?

  • Be a resident of Puerto Rico
  • Be 21 years or older. If you are under 21, an emancipation or marriage certificate is required
  • Provide your Social Security number
  • Income information

Loans for every need

At Popular, we help you get the personal loan that suits your financial needs. To compare available personal loans, click here.

For more information, call TelePréstamo Popular® at 787.294.2572 or 1.888.724.3653, Monday through Friday from 8:00 a.m. to 7:00 p.m. and Saturdays from 8:00 a.m. to 5:00 p.m. You can also visit your nearest Popular branch for guidance or click here to apply for a loan.

Loans are subject to credit approval. Certain restrictions and conditions apply.

The information contained herein was prepared for general information and educational purposes only and should not be construed as professional, tax, financial or legal advice or a legal opinion on specific facts or circumstances. Banco Popular de Puerto Rico, subsidiaries and/or affiliates are not engaged in rendering legal, accounting or tax advice. Please consult with your attorney, financial consultant/planner, accountant, and/or tax advisor for advice concerning your circumstances.

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