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Know the types of loans and how to choose the ideal one for you!

In this article, we show the main types of loans available on the market and learn how to choose the ideal one for you. Check out!

What are the main types of loans?

Taking out a loan can be a good option in times of unforeseen financial circumstances. Another interesting moment is when you need extra money to fulfill a dream, such as renovating your house or changing your car. 

In situations like these, access to credit can be a great ally. However, you need to know all the types of loans available and take into account issues such as: 

  • interest rates;
  • payment term;
  • financial institution. 

Below, we have gathered the main types of loans on the market and their characteristics

This article will serve as a guide for you to make the best decision to hire this service, so be sure to read it before signing the contract. 

Personal loan

Also called personal credit, this type of loan is a way to borrow money from banks or financial institutions. The money is returned to the institution through the payment of installments that reach the total amount of the loan plus interest, which varies according to the rules of each institution. 

This modality brings many advantages, among the main ones we can highlight the possibility of paying in installments, the speed to release the money, and lower interest rates than in other lines of credit. 

The monthly installment of the payment can be in the short, medium, or even long term, and, depending on the type of interest, the value of the installments is the same from the first to the last payment. 

This way it is much easier to organize yourself to pay off the loan without going through any financial squeeze. 

The personal loan can also be used to pay off higher-interest debts and to start a business. 

As an investment plan is not necessary, as in financing for companies, this type of loan can help take your entrepreneurial projects off the ground

Despite these benefits, the amount available to those who take out this type of loan is usually lower

So, if you want to make a high-value purchase, such as a property or a car, a personal loan may not be the best option. However, it is a very interesting option for emergencies and to get money quickly.  

Private Payroll Loan

The private payroll loan is an exclusive line of credit for registered workers. In this type of loan, the value of the installments is deducted directly from the payroll of the employee who requested the credit. 

Private consignment works with a guarantee, as the installments are automatically deducted from the customer’s salary. In this way, the employee who requests a payroll loan receives a reduced salary during the period of payment of the installments. 

Because of this operation, the financial institution runs little risk of not having the amount paid.

Due to this guarantee, the advantages of this type of loan are: 

  • lower interest than in other modalities; 
  • possibility of getting credit even if negative;
  • longer payment term, with up to 120 months to pay value. 

The maximum limit of the installment of the payroll loan proceeds cannot exceed 35% of the salary of the person who requested the credit

Also, 5% of the limit can only be used on the payroll card, which works like any other credit card. So, if a worker receives R$2,000 net of salary, the maximum amount of the monthly installment is R$700 and the card limit is R$100.

Now, if an employee has a payroll loan and is fired, the installments can be charged to the worker’s current account or through a bank slip. 

The form of payment may vary according to the conditions set out in the contract, so if the employee is fired, the first thing to do is read the contract to see if there is any advantageous discount to pay off the installments. 

Payroll loan for a public servant, retiree, or INSS pensioner

Like the previous one, this type of loan is characterized by the deduction of installments directly from the payroll or benefit. 

Who are entitled to this credit are: 

  • municipal, state, or federal public servants;
  • military;
  • INSS retirees and pensioners. 

As with the private payroll loan, in this type of loan the maximum installment limit cannot be greater than 35% of the salary or benefit and 5% must be used on the payroll card. 

Due to the stability of civil servants and the guarantee of INSS benefits, the payroll in this category has even lower interest rates, as the risk of default is almost non-existent. 

So, financial companies are able to offer good conditions to customers. Generally, the amount of interest is already determined in the contract itself. 

Despite the advantages such as longer payment terms and ease of contracting, this type of loan is long-term debt. So, you need to organize yourself financially before applying for credit, as the salary or benefit will have a lower value during the time of payment of the installments. 

Student or university credit

This service is exclusive to higher education students. Student or university credit must only be used to pay college tuition and can be contacted privately.

For this type of loan, you can look for banks or specialized companies. Another option is offered by the federal government through the FIES (Student Financing Fund). In FIES, the student only begins to pay the debt after graduating. 

If you want to take a higher education course but cannot afford the monthly fees, research the options available in the market and pay attention to interest, terms, and payment terms.   


Although some people don’t know it, an overdraft is a type of loan. It is a line of credit that banks make available to their users from the moment the account is opened. 

To use the overdraft, you don’t have to do anything, as the amount is available to the customer when he spends more than his account balance.

Using overdraft is very dangerous, as it has one of the highest interest rates on the market, reaching more than 100% per year. This service is often used as a quick fix for times when you need the money right away but know you will replace the amount used in a few days. 

If you are unable to pay the amount you took from the overdraft in a matter of days, it is better to choose another type of loan. 

housing loan

This loan is made available for the purchase of real estate, land, or renovations. Housing credit is financing, and the total amount must be paid in installments. 

Your hiring is done through banks, and to request it is necessary to check the conditions and documents required, which are usually: 

  • ID;
  • CPF;
  • proof of address and income;
  • income tax declaration;
  • joint certificate of debts referring to federal taxes, which can be issued through the Federal Revenue website. 

One of the advantages of housing credit is the possibility of using the FGTS balance to make a down payment, helping to reduce the payment amount. For this, it is necessary to present the original, dated, stamped, and updated FGTS statement, which is issued at any Caixa Econômica Federal branch.

auto loan

This credit, which is also financing, is an option for those who want to buy a vehicle but need financial help

Cars or motorcycles, especially zero kilometers, tend to have high prices and people rarely have this available amount saved, so if you intend to exchange or buy a vehicle, this line of credit is a good option. 

Depending on the financial institution chosen for financing, it is possible to finance the entire value of the vehicle or to make a down payment and finance the rest, which makes the installments even smaller. 

13th salary advance

Some people don’t know, but the anticipation of the 13th salary is also a form of a loan. Normally, this credit is requested by the bank where the customer has an active account. 

It works like this: the bank offers an amount that must be returned during the payment period of the 13th, usually in the months of November and December. That is, the client requests the money and only pays when he receives his 13th salary

This type of loan is only indicated if you are really in need of money right away, as it is not possible to know how your financial situation will be at the time of debt repayment. 

loan by pledge

The pledge is to offer a good as collateral for an agreement. That is, if there is a payment contract, a material guarantee can be offered by the debtor to the creditor. If this contract is not fulfilled, the creditor has the right to keep the pledged asset. 

This type of practice is also a type of loan, and the best known is the pledge of jewelry. In Brazil, only Caixa Econômica can carry out this operation. However, there are other types of pledges such as industrial or commercial, vehicle or rural. 

Financial institutions that work with a pledge of assets usually practice lower interest rates and do not check the status of the CPF of those who are applying for credit. This is because as there is a collateral asset, the finance company runs a lower risk. 

The pledge of assets is an option for people who are negative or who cannot afford higher interest rates. However, when pawning a car, for example, there is a risk of running out of a work tool and, in the case of jewelry, of losing an asset with sentimental value. 

That’s why it‘s important to consult other loan options before pawning an asset


Financing is a line of credit where the customer needs to inform what will be done with the money received. As with other types of loans, the amount must be returned to the financial institution within a certain period, through interest-bearing installments. 

However, when requesting funding, it is necessary to make clear the destination of the money

The advantage of financing is that payments can be made in very long terms and there is the possibility of amortizing the installments when there is little money left. However, interest rates in this category are usually quite high. 

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