Compare the best options on the market and choose the one which best adapts to your day-to-day needs.
Our Rating: 9.5/10
- Loans available for any purpose
- Friendly interest rates including a 12.1% annual interest rate
- Flexible loan limits of up to €50,000
- Convenient repayment periods of up to 120 months
- Few additional loan fees
- Fast concessions
- Fewer eligibility criteria
Banco BPI Portgual
Our Rating: 9.2/10
- Flexible loan amounts of up to €30,000
- Long repayment terms of up to 72 months
- Available for a variety of purposes
- Attractive interest rates and 11% APR
- Fast approval within 24 hours
- Insurance is optional
- Top loan conditions
Our Rating: 8.9/10
- Flexible loan size of up to €30,000
- Fast approval process within 48 hours
- Hassle-free application through an online platform
- Customizable repayment period of up to 120 months
- Less stringent eligibility criteria
- Prefers funding applicants with an income
- Fixed interest rates on long term loans
Banco Santander Totta S.A.
Personal Loans in Portugal, All You Need To Know:
Take a quick 10-minutes-read to learn about personal loans in Portugal, including what factors to consider before contracting this type of credit and what’s different about Portuguese personal loans. At FUNDGECKO, we collect the most recent news about consumer credits and everything related to them.
The current market for personal loans
- Financial market stability in the Eurozone has been majorly shaken by the ongoing Russia-Ukraine war. While the Eurozone was expecting much post-pandemic growth, many borrowers are now at risk because of the inflation of prices, whereas non-bank lenders may fall prey to credit and liquidity risks.
- According to the May 2022 Financial Stability Review, things might get worse than even strong banks can handle as long as the economy and supply chains are crippled by the ongoing Russia-Ukraine war. These banks may suffer credit risks and reduced profits. These have faltered the pace at which the economy was regaining ground in 2022.
- The EU is hard hit by the Russian invasion. While peace would bring some relief to the financial market bottlenecks, there are still many uncertainties concerning the war and its continued consequences on the global economy.
How to compare between online loan offers?
Taking out a loan is an important financial decision that could affect your financial situation either positively or negatively. It’s, therefore, prudent to be on the safer side and work with only what’s beneficial. If thinking of a personal loan, there are a host of lenders, whose deals may all seem attractive. Hence, it’s good to know how you can best do the sorting as you narrow down to the loan option that best suits you.
The sorting process will require you to use parameters such as the amount of the loan, the interest rates, repayment period, commissions, cost of the links, and any other fees.
For example to buy credit offers and save 600 euros
In the following table, we can see how to compare online personal loan offers taking into account all factors.
By copying this table and performing different simulations according to the project we want to finance and the offer made by each entity, we will be able to know which one will be the best simply by comparing the total cost.
How to use FUNDGECKO to get personal loans
Getting an all-round knowledge about loans and how to get the best options in the market is one huge step that any borrower needs to make. At FUNDGECKO, we are passionate about helping our users through the whole process of acquiring loans including the application process, the required documentation, any policies governing the credit they’re requesting, and any other requirements.
You’ll follow the following steps at our site:
- Compare the different loan options you’re attracted to. This step is free of charge.
- Take an in-depth tour of the contractual terms and conditions of the loan option you choose.
- Our team is always ready to help clear your doubts and answer any questions you develop along the way to boost your confidence as you take out a loan. Clicking on “contract” will lead you to the entity’s website from where you’ll undertake the application process with the help of our team of experts.
- Our website has a comment section where our happy clients may pen down some comments or reviews about our services.
Why do you look for personal loans?
A personal loan is a good source of finance that could help you finish a pending project, make a big purchase, buy a smartphone, and go out for a retreat, among others. For whichever the purpose, it’s important to consult with your lender to determine whether there are loans that are specifically tailored for different purposes and whether they have better conditions than a personal loan.
Personal loans cover different purposes such as:
- Buying a car
- Renovating your home
- Buying kitchenery
- Buying electronics
- Financing your studies
- Financing your vacation
- Clearing medical bills
- Clearing debts
- Making big purchases
Generally, loans designed for a specific purpose tend to have better conditions than generic ones. They tend to provide bigger loans, fewer interest rates, and longer repayment periods than is the case with generic ones.
How to apply for a personal loan?
Generally, the process of applying for a personal loan is the same regardless of the entity you’re getting the funds from. However, it’s noteworthy that you may find a few nuances with some entities. For instance, an entity might require you to make a physical application while another may allow an online application.
What steps are you likely to follow with personal loans in Portugal?
- Select at least three entities that you’re attracted to and consult about their conditions. Compare their terms and conditions to determine which one best suits you.
- The entity will send you the application form either online through their application or they may request you to get to their offices for the physical application. Select your preferred terms – amount, term, and purpose – and fill out all the blank fields with the most accurate personal data before handing the form back to the lender.
- If all goes well, the lender will send you a pre-approval message immediately for the online application and after 24-48 hours for the physical application.
- Be sure to provide all the documents required by the entity either by uploading photos online, scanning, or dropping them at the entity’s office.
- After approving your application, the entity will send you pre-contractual information which you will be required to read through. Reading through will help you know about the terms and conditions of the contract and any future changes. In this way, you’ll be braced for any payments in the future.
- Sign up for the offer if you’re in agreement with everything about the contract. For the online application, you’ll be required to sign through a digital signature.
- Receive the funds. This happens after about 48 hours but may vary with the entity.
Requirements for personal loans in Portugal
Personal loan providers in Portugal have common requirements that every borrower will have to meet. It’s not enough to know how to apply for a loan – you have to meet all the requirements that the lender sets to reduce the chances of your application being rejected.
The following are the must-meet requirements:
- Age. While the legal age for applying for a loan in Portugal is 18 years and above, many entities will start funding you at 21 years and below 75 years.
- Regardless of your nationality, entities will require that you have a Portuguese residence permit (whether permanent or temporary).
- Have a positive credit history. While some entities will fund you even with a poor credit history, most entities will automatically reject your application if you are registered with the Portuguese Central Credit Register as a poor borrower.
- Have enough income. The lender will assess your level of income to draw confidence in your ability to repay the loan. Some entities will not fund you if you collect very low income.
Reading the contractual information will help you understand the terms and conditions of the loan in full. For instance, an entity may require you to hold the residence permit for more than 6 months while others may fund you regardless of how old the permit is.
Documentation for applying for a personal loan
Your entity will require documents that verify that you indeed qualify for the loan you’re taking out. The information in the documents and the application form must correspond to have a successful application.
Which documents must you have?
- Copy of your national ID, passport or other forms of identity
- Permanent or temporary residence permit card
- NIF number
- Bank statements showing your recent income and expenses
- The last three payslips or documents showing your income whether as self-employed, retired, etc.
- Documents showing your purpose for taking out the loan or the budget of your project.
Who grants personal loans in Portugal?
Contrary to what it was before the financial crisis in 2008, many non-bank lenders in Portugal got their way into the Portuguese financial market. While banks still hold a tight grip on the lending market in Portugal, many other lenders are catching up with the pace.
Entities that grant personal loans:
- Bank entities
- Credit Financial Institutions (CFE)
- Private Lenders
- P2P Lending Platforms
Loans through bank entities
✔️ Variety of financial products
✔️ Flexible loan amounts
✔️ Long repayment periods
✔️ Low/friendly interest rates
❌ Long application process
❌ Many fees and commissions
❌ Seniority is a determining factor
❌ Many related products
Financing through Credit Financial Institutions (CFE)
✔️ Fast application process
✔️ Friendly interest rates
✔️ Fewer fees and commissions
✔️ Open for a variety of purposes
✔️ Faster concessions
❌ Stringent eligibility criteria as in banks
❌ They can operate only through stores or dealerships
Loans from private companies
✔️ Fast application process
✔️ Lenient requirements
✔️ One can qualify without seniority
❌ Expensive due to high interest rates
❌ Can hurt your credit history if taken out irresponsibly
Personal Loans through P2P Platforms
✔️ Excellent financing conditions
✔️ Fast and 100% online application
✔️ No related products
❌ Slow processing of funds
❌ Strict eligibility requirements
❌ Few platforms that grant payday loans
FAQ: Frequently Asked Questions
What is a personal loan?
A personal loan refers to a type of credit that you take out from a bank or a lending institution to pay back with its interest rates and in the agreed-upon monthly installments and over a set period. You may take it out when in need of completing a project, buying a car, buying a home, renovating your house, overhauling your kitchen, and financing your studies, among others.
Why don’t you give me personal loans?
Personal loans should be a quick form of financing. However, there are a variety of reasons why a lender will reject your loan application. Information in your documents, bank statements, and application form might be conflicting, you might have an unhealthy level of debt, or might not be earning enough salary.
What is the INE form for a loan?
Your lender will give you the Standard European Information (INE) form that contains all the details of the contract including the term of operation and loan conditions – amount, term, interest rate, commissions, and other fees.
What is the binding offer of personal credit?
If the entity grants us a binding offer, it grants us a minimum of 14 calendar days when we can compare other loan offers without losing the current offer. The lender gives you the binding offer, which is a document that contains the clauses and conditions of the loan, which you’re required to go through as you compare other options.
Can personal loans be paid in advance?
By the Portuguese Law on consumer credits, it’s legal to refund the loan in advance either in full or in part. In either of the cases, you’ll be required to repay the loan plus the accrued interests. Moreover, you’ll be required to notify the lender of your decision to repay the loan beforehand. Depending on the entity, you’ll be required to make an early repayment fee.
What if I take out a loan online and then regret it?
The Portuguese Law allows credit consumers to withdraw their loan applications. This only happens during the first 14 days, after which the borrower may face penalties.
What happens if I don’t pay back a personal loan?
Failure to repay a loan is rejecting your responsibility, which has consequences. This starts by hurting your credit history (you’re registered as a poor borrower at the Central Credit Register) and may end you in jail if your lender chooses to file your case. By affecting your credit history, you’ll not be able to access any loans in the future. Hence, it’s advisable to take out a loan that you’ll be sure to repay.
When to Apply for a Personal Loan
A personal loan comes in handy when you’re looking to finance a project but don’t mind waiting or taking it out from a new entity. The above-mentioned entities offer the best personal loans whose websites accommodate English-speaking clients.
Portugal is well-known for granting loans to expats. The application process is seamless, as long as the borrowers meet all the requirements.
When to Apply for a Fast Loan
A fast loan is a type of credit that provides financing during economic emergencies. You may want to clear a medical bill, consolidate debts, or any other instant needs.
However, fast loans can lure you to over-indebtedness because of their easy and fast application process, and their less strict eligibility criteria.
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.