Compare the best options on the market and choose the one which best adapts to your day-to-day needs.
Further Below: Our Guide To Loans in Portugal, covering everything you need to know.
Take a quick read to get a hang of how to employ a loan that’s most consistent with your financial situation. At FUNDGECKO, we take time to marshal the most reliable information and news updates that are relevant to informing your financial decisions. In that way, your loan application process is seamless and time-conscious.
Scroll down to know all it takes to hire a financial product in Portugal and what factors to consider before hiring one.
A loan refers to a resource or a specified amount of money that’s given out to a borrower on an agreement that they will repay later. There are certain set terms and conditions governing the giving and hiring of loans, which vary depending on the country and to some extent, depending on the lender. Loans are affected by different factors and, hence, may have different eligibility criteria. Such factors include the loan size, the cost of the loan, the repayment terms, and added fees, among others.
Hence, before taking out a loan, the lender will send you documents indicating the terms and conditions of the loan. Be sure to note the tiniest of details to be well-braced for any future charges. Different loan types offer different loan sizes. For instance, online mini loans grant small loans that are reimbursed after one month. On the other hand, secured loans mostly grant huge amounts and the payment period is long.
Hence, be sure to familiarize yourself with your financial situation to get a loan that will best suit you.
According to the Banco de Portugal, the average lending rate in Portugal decreased by 0.05% in March 2022 from February’s 2.11%. The country’s banking system is somewhat stable, compared to other countries in the region. Moreover, the country’s banks are known to place few eligibility criteria for expats with a Portugal residence.
What we should know before taking out a loan in Portugal
Online mini-credits are our first option whenever faced with a financial emergency. The loans help us with quick money in a fast, hassle-free, and convenient way. However, this type of credit will only favor you under certain conditions. Hence, it’s important to have a 360-degree knowledge of the loans and when you need them before making any decision.
When is it advisable to apply for online loans?
When should we not apply for online loans?
Using the above-mentioned parameters will help us quickly assess our financial situation to determine which type of loan we need.
Due to their fast nature and fewer eligibility criteria, mini loans come in handy during small economic emergencies. New borrowers will always get small loans at first because their trust level with the lender is still low.
New Clients:
Up to 500 euros
Existing Clients:
Up to 5,000 euros
Older borrowers of online mini loans may enjoy bigger loans with reduced rates because the lender already trusts their repayment ability. These borrowers have taken out a loan before and reimbursed it without problems and under the agreed terms and conditions.
The process of taking out a loan is always successful if only the borrower meets some set requirements. While these requirements may not be so strict for online mini loans, a borrower will still be required to meet each of them. With other loan types, the requirements are more strict because they are associated with bigger loan amounts and longer repayment periods, etc.
So, what requirements must you meet to access a loan in Portugal?
To most entities in Portugal, the above 4 requirements have to be met before qualifying for a loan. Other entities, however, may have more requirements than these. Hence, consult with your lender to know what requirements they’ve placed for their applicants.
It’s not enough to feel like you meet the requirements for accessing loans in Portugal. Your lender will need proof that you actually qualify for the loan. That’s where documentation comes in. For the online mode, these documents are submitted online either by uploading the documents, sending via email, or scanning them. For the physical application, lenders will have you drop the documents at their offices or send them via a courier.
The above requirements are the most common in Portugal. However, some entities tend to have more requirements depending on the loan type and other factors. Most lenders in Portugal have online platforms through which borrowers make their applications. Hence, the process is fast and hassle-free.
Steps to contract a mini loan:
In Portugal, online mini loan providers process the funds fast, in a period not exceeding 20 minutes since every step of the application process happens online including signing the contract. Below are the four steps you’ll be required to follow:
After signing up for the contract, the entity will release the funds to the borrower.
About this page: we are out to help you to get the best financial product that’s consistent with your financial situation. We, therefore, marshal the best available information about consumer credits and what factors to consider as you compare the options so you may end up with the most attractive product at the moment.
Source: the information regarding the main characteristics of loans in Portugal and their current regulation comes from the Banco de Portugal, the Portuguese Consumer Credit Act, among other reference portals.
Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.
About Us: FUNDGECKO is an online comparator website that helps borrowers who are indecisive about consumer loans and what option to hire. We help our users compare the options like pros by providing all the information they need about consumer credits and how to end up with an option that best addresses their situation.
Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.