Can a bank loan help improve personal finances?

There are many goals we want to achievefrom acquiring a property, covering educational expenses, buying a more spacious vehicle or investing in personal businesses, however, many of them cannot see the light due to the lack of liquidity.

In these types of situations, and it depends on personal economic status, a bank loan is one of the first options that comes to mind. This step supposes an economic support, but it is also a decision that must be analyzed from the beginning.

“Aspects such as the source of payment, the personal and real financial budget, job stability, as well as the payment capacity that allows compliance with the acquired obligation. After considering these previous aspects, accessing a loan is an ideal option to improve and strengthen the family economy.”, explains Esteban Correa, Commercial Deputy Manager of Cooperativa Andalucia.

among some of the benefits of accessing a bank loan they find each other:

Strengthen the family budget

Whether the credit is used to pursue a master’s degree and find a better job or to invest, start or expand a business, this financial tool will allow this objective to be met, without postponing it, which will strengthen the applicant’s budget.

Thanks to this type of financing, households can have capital to acquire fixed assetsbuy infrastructure for the business, invest in education and other necessities that are required, in order to fulfill dreams and promote family growth.

Prevent debts from exceeding income

One of the advantages of credits is that they are disbursed and authorized in accordance with the applicant’s ability to pay. This allows adjustment to real needs and avoids situations of non-compliance with obligations. In this sense, Cooperativa Andalucía, for example, provides personalized advice, not only focused on granting money, but also offers clients education, advice, guidelines and help in different ways to boost the finances of Ecuadorian families in a way responsable.

Generate new credit opportunities

Through financing, the person can generate new credit opportunities since a history of their behavior is recorded in the financial institution. Thus, punctual compliance is recommended in order not to affect your rating, since the timely payment of credit obligations generates confidence to request future services.

Increase family income

Access to credit represents an opportunity to achieve family and personal goals, it is an economic boost that can be used, even in the reactivation of businesses or investment in new infrastructure. “Injecting money into the family budget contributes to the economic development of the home, allowing the achievement of goals that translate into profitable investments in the future, as in the case of accessing a better job through a master’s degree or with the expansion and growth of a business that improves sales”, affirms the expert from Cooperativa Andalucía.

Allows to alleviate previously acquired obligations

If a person already has a credit obligation, there is always the option of improving the characteristics of the credit, and in that case it is important to analyze options that suitn either by having a lower rate, or a longer term that allows lowering the monthly fee.

Recommendations before acquiring a bank loan

Before requesting a consumer credit or microcreditit is necessary to take into account the following aspects so that the entire process is carried out safely and without affecting the family budget:

• Define the purpose of the loan.
• To plan the payment of the debt: analyze the current income and expenses to know the capacity to face a new financial commitment.
• Evaluate Interest rates.
• Analyze the different options that exist in the market and verify that they are authorized by the regulatory entity.
• Have financial culture: keep finances in an organized manner, manage a registry to control income and expenses and clearly identify the personal budget, always looking for the best alternatives to avoid falling into arrears. Self-control must prevail. (F)