Loans and financing - understand the difference and which is most recommended for you

Loan and financing services requested by customers from public or private banks are much more common than one imagines. This is because, when wanting to make a dream come true, the person does not always have an amount to cover the expenses.


Therefore, before starting a new project, planning is needed, which means researching and identifying which type of credit is best for you at the moment. But despite being the most common forms of credit release, every applicant undergoes careful credit analysis. 

Before requesting an analysis of this type, you need to keep in mind that all financial institutions ask for a down payment when the loan is granted. So, don't be fooled into thinking that this is not a bureaucratic process, it takes a lot of financial responsibility.

What is a loan?

At the accounting dictionary a loan is a way of granting a certain amount to an applicant that is subject to market rates and payment time. In general, in loan actions, the borrower does not need to inform what purpose he intends to give the money in question. 

Thus, when money is short, people prefer to use the different types of loan options instead of resorting to financing. However, it is necessary to have care when applying for a loan not to be subjected to abusive fees and interest.

Loan Types

A very frequent question among people who want to apply for a loan is to know which option is best for you. So, here is a list with some options to make choosing easier:

  • Payroll loan - It is an exclusive loan modality for INSS retirees and pensioners, military personnel from the armed forces, CLT salaried workers from private companies and public servants. This is because when opting for the payroll loan, the customer allows the discount to be made directly on their payroll.
  • Bank loan - It is a type of credit that consists of a contract where the bank provides an amount to the applicant that will be paid in a certain period with interest and fees. The more often you pay in installments, the more fees and interest the applicant will pay.
  • Personal loan - It is a type of credit for individuals, in a contract signed between a bank and a person with their identification documents. Thus negotiations take place between the two parties. 

What is the difference between a personal loan and a payroll loan?

Personal loans and payroll-deductible loans are usually the credit modalities most used by Brazilians, according to some researchers. But what we can say is that they are totally different modalities from each other.

This is because the payroll is your source of income that defines whether you are able to make a credit analysis request in this modality or not. They need to be INSS retirees and pensioners, military personnel from the armed forces, CLT salaried workers from private companies and public servants, which greatly limits the target audience.

The personal loan option, on the other hand, is a very broad modality, as any individual can make a request and negotiate the credit release contract. But for this you must be aware of the rates and interest allowed by law to not be subject to undue charges.

What is financing?

Therefore, financing is a type of credit intended for people who wish to make a proven purchase, as in this option, in addition to informing the desired amount, you also need to prove the purpose of that amount.

In this format, the applicant undergoes a thorough analysis in which the institution looks at the history and characteristics of the client's financial life, such as:

  • Score;
  • Customer payment history;
  • Income;
  • Financial stability.

Thus, the financing to be released needs guarantees, such as a down payment, and even a guarantor for the credit approval to be carried out.

Types of financing

Unlike a loan, the types of financing depend solely on what the applicant intends to do with the intended amount. Thus, there is a type of financing for each credit purpose. Check out some funding possibilities here:

  • Property Financing - this modality is for people who want to acquire a new house, apartment or even land. The institution pays the property to the owner and the customer pays the installments for the financing.
  • Vehicle Financing - in this option, the financial institution pays off the applicant's car and the applicant cannot transfer ownership of the vehicle until it pays off its financing debt.
  • Asset Financing - good option for companies that are without capital, but need to invest in materials with high market value, an operation that requires CNPJ to be carried out.


The options for loans and financing are vast and it is necessary to be careful to see which option is best for you, as everything will depend on your profile as a client, in addition to the objectives for the requested amount. In any case, it is possible to identify that, due to the high values for acquisition, financing is always more bureaucratic options. See too What is financial mentoring? When is it recommended to do it?


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