New loan modality uses a good, in this case the smartphone, as a guarantee. This was a way that insurers found to ensure the release of credit, reducing chances of being harmed, since non-payment of installments will result in blocking the device.
To learn more about this news, check out the full article and see how to take out a loan using your cell phone as collateral.
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First, this is a much simpler type of loan to apply for than others on the market. In this case, financial institutions only require that the person be over 18 years old, as well as possess a bank account and can prove income of at least one minimum wage to guarantee payment of the loan.
Another important factor, but already expected: it is necessary that the cell phone is in full operation. Having fulfilled the aforementioned requirements, it is possible to apply for the loan.
As the cell phone itself already works as collateral, the chances that the loan will be released are much greater. Another positive point, in this case, are the interest rates. Compared to other credits, this modality usually has a much lower interest rate.
However, you need to keep payments up to date. The contract for this service is very explicit and makes it clear: in the event of a delay in the installment, one of the contractual clauses provides that the smartphone will be blocked. In this way, the device becomes unusable, making only emergency calls.
This factor is due to the type of software that contractors must install. This program turns out to be Compatible with Android system only. iOS, on the other hand, makes the iPhone incompatible to be used as guarantee for the loan.
Some institutions only accept Samsung-branded devices as collateral. Others, however, are more inclusive and also accept Motorola, Xiaomi and LG devices. For this reason, try to be informed about this factor in advance, so as not to have problems when applying for your loan.
