The Best Payday Loans in Portugal in Just One More Click
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 Payday Loans in Portugal, Everything you need to know.
Our Rating: 9.1/10
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Banco BPI Portugal
Our Rating: 9.5/10
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Novobanco
Our Rating: 8.9/10
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Banco Santander Totta S.A.
Take a free 5-minutes read into the best payday loans to be fully equipped with the knowledge you need before contracting a payday loan in Portugal. We help you make an informed financial decision by marshaling all the necessary information about credits in Portugal and what might be affecting them now.
The Banco de Portugal has outlined several rights and duties of credit consumers before and as they take out loans in Portugal.
Payday loan consumers have the right to access and go through all the information and the details of the contract. This includes all the terms and conditions of the loan (interest rates, amount, repayment terms, and commissions) in the standardized information sheet (SIS). The consumer should get a chance of comparing different loan conditions and proposals to determine the offer that best suits them.
Moreover, the lenders should clear any doubts that consumers develop along the way and evaluate the risks that consumers may face when taking out the loan.
The bank, therefore, should provide a copy of the contract documents before and after the customer signs up for the loan.
The loan consumer has a right to receive periodic updates on any changes that may happen in the course of repayment. While these changes might have been outlined in the contractual documents, the lender is required to notify the borrower periodically about them. The Portuguese government requires that the lender sends a maximum of 6 annual debt statements without charging any fees.
One major consideration the consumer is required to take is their income viz-a-viz the monthly installments they’ll be required to pay upon taking out a loan. The loan should cover between 35-40% of your monthly income to be able to assume repayment of the loan comfortably. A loan eats into your monthly income for a long time, hence be braced to have deductions without straining.
Different lenders have different conditions for their financial products, hence, make a good comparison of loan offers to end up with the best available offer.
Once the consumer receives SIS, they are expected to read through the contract details and compare a few other proposals to get the one that best addresses their financial situation. In this way, the consumer is able to clear all the doubts with the lender before signing up for the loan.
Since the lender takes a risk in giving out a loan, the consumer has a duty to provide genuine information about their financial condition to the lender both during the application process and in case of any changes during repayment.
In this way, the lender can evaluate the consumer’s level of debt, income, and expenses.
Once the borrower has entered into a loan agreement, they are obliged to comply with every single condition of the loan including paying monthly installments and any other commissions.
While the process of applying for a payday loan may vary with different entities, below are the most common steps you’ll take to get financing:
The lender is not in any way obliged to finance you even when you meet all the set-out requirements. However, leaving out a single requirement may have your application dismissed.
So, what requirements will you have to meet?
While some entities will finance you regardless of your level of debt, it’s your duty to maintain a good credit history. Before taking out a loan, use the above parameters to determine whether it suits you.
The entity will require evidence that you meet their set-out requirements. They will, therefore, require you to send supporting documents.
Who grants payday loans in Portugal?
Portugal is far from the era when banks monopolized the lending market. This happened after the 2008 financial crisis when many other lenders got their way into the market.
By now, various lending institutions are trying to catch up with the banks, who still dominate the Portuguese financial markets.
Entities that grant payday loans:
A payday loan is a form of consumer credit that’s designed to address small economic emergencies. The processing of the loan is fast and designed to have short repayment periods because of their small amounts. Moreover, payday loans have high interest rates, hence, are mostly taken out when the lender lacks an alternative source of money. The purpose of taking out a payday loan may be renovating your home, buying electronic appliances, buying a smartphone, and finalizing your project, among others.
While payday loan lenders have fewer eligibility criteria than other loan types, the lender will reject your application if you do not meet their irreducible minimums. For instance, many applications are dismissed because the borrower records a negative credit history, collects a lower income than what is required to give him a loan, lacks a Portuguese residence permit, and may not be of the right age.
Moreover, the lender will also not risk financing you if the data you provided on the application form does not correspond with that in the documents.
A binding offer is a document that your lender sends you before signing up for the loan agreement. The document contains all the clauses and conditions of the credit which you’ll be required to go through in detail for 14 days before finally deciding on whether to settle for the loan or not.
Borrowers are allowed to repay the loan in full or part before the end of the agreed time. However, the loanee is required to notify the lender of this decision and may face some refund charges. The borrower will also be required to pay the whole amount they would have covered by the end of the repayment period – accrued interests, commissions, and other fees.
The Portuguese Law allows consumers to withdraw loans in the first 14 calendar days. Beyond the safe 14 days, the borrower may face some penalties.
A payday loan is designed to address certain economic contingencies that may have the borrower shift the entities. The financing may take time, depending on the entity, hence, the borrower may not mind waiting.
Be sure to try out loans with our above-mentioned entities to enjoy a loan that’s the most suitable for you.
A fast loan is applied for when the borrower needs instant funds. They are mostly taken out during economic emergencies. However, if your need is not urgent, you may consider taking out a different credit.
Before taking out a loan, it’s prudent to assess our financial situation and set out to look for a consumer credit that’s most compatible with us. As you take out a loan, note that the lender is not in any way obliged to grant you finances, even when you meet all the set-out requirements.
Once you take out a loan, you’re obliged to pay it back under the agreed-upon terms and conditions, hence, borrow wisely.
About this page, our methodology
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.