A banking product that allows individuals to obtain money as a loan in exchange for repayment with interest through agreed-upon installments. This type of loan is intended for financing expenses such as vacations, home appliances, vehicle purchases, home renovations, studies, and other expenses. The financial institution offering the loan does not require a real guarantee for its recovery. When contracting one of these loans, it is important to pay special attention to the interest rate, opening and cancellation fees, repayment periods, and the amount of the monthly installment, determined by the annual equivalent rate (AER) and the term. The loan amount, term, and interest rate determine the monthly installment to be paid. The longer the term, the lower the monthly installment, but the total cost will be higher because interest will be paid for a longer period of time.
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