Bank Financing – What Is It And How Does It Work?



Want to know more about bank financing? How is it done and what are the advantages of doing it? After strengthening the Brazilian economy a few years ago, banks began releasing bank financing. In this sense, banks have offered to offer various types of financing to meet all audiences. Thus, bank financing is when the individual or legal entity receives a certain amount from the bank. This amount can be to buy a property or even a car. In bank financing there will be a contract between the client and the financial institution.

Bank financing can help bank customers manage to put into practice the desire to buy a home, a new car, start a business, or even that long-awaited holiday trip. Today it has become easier to get bank financing compared to 20 years ago.

But to obtain the bank financing some proofs are necessary, like presentation of documents and proof of income, so that the value is released. After the negotiation, both agree on the payment methods, and the client becomes aware and clarified about the interest rates that will pay.

How does bank financing work?


How does bank financing work?

At the time you apply for bank financing, you must tell the bank what the purpose of this funding is. The bank goes in search of information to know if you have sufficient collateral to cover the credit amount and whether they can be converted into features easily. Otherwise, it may not release funding for you.

It is necessary to present valid documents like CPF, proof of income, and even in this the banks have admitted any source of income. Income can still be proven through employment contract, pension benefits, or even other types of income. In case of any financial restrictions (eg name in Serasa), this can be a major obstacle to granting the financing. But this can depend a lot on the Bank, so it’s good to go and negotiate in person.

When a citizen buys a property, vehicle or materials he can finance all or part of the value . Financing is carried out by banks and financiers, who pay the seller the amount that the buyer wants to finance . From there, the buyer will have to pay the bank until repaying the debt.

Bank Financing – What Is It And How Does It Work?

Depending on the type of bank financing, the bank may take a few days to review the submitted documents. But in many cases if the client has sufficient income to secure the financing and has no financial constraint on his behalf, there is no reason for the bank to deny the intended financing. Normally until the same day the bank gives the confirmation response of the bank financing. But depending on the type of situation and the rules of the bank it may end up preventing the release of bank financing.

Financing Simulator

Financing Simulator


Steps to make a bank financing

Usually the following steps are required to achieve bank financing:

● Choose a bank of your choice;

● Verify the documentation required for bank financing and arrange it. This can vary greatly from bank to bank;

● Wait for the approval of the credit limit by the financial institution;

● Provide documentation when necessary and after signing the Financing Agreement;

● Wait for approval and issuance of the Agreement by the bank. After signing the Contract, the customer must collect the Transmission Tax (ISTI) and register the contract at the Registry of Real Estate;

● After registration, the client should contact the Financial Institution and await the release of the appeal with the Merger;

● Upon the release of the appeal by the financial agent, it must be confirmed with the Merger if the amount released removes the entire debtor balance of the unit, and if there is a difference in values, it must be paid by the client.

And is it worth the bank financing?

It is important for you to know how much you need value for what you want, and then know how to manage these financial resources well. Even because depending on the form of contract, this amount will be returned and with interest. So much organization is needed so that bank financing does not become a long-term debt that you can not afford and manage. Funding in general should be a choice you make only because it will help improve your financial situation and not make it worse.

So before you apply for any type of financing, be it bank or private, make sure you really need it, or if you can wait a little longer, or even better, put together more money to buy, negotiate, without relying on bank or financial financing.

Leave a Reply

Your email address will not be published. Required fields are marked *