Personal Loan for Construction Projects

The Purposes of Housing Credit may be Acquisition, Construction, and Exchange of House for use as permanent or secondary residence.

You can choose between 2 types of interest rates: 1 - Variable Interest Rate: it is an interest rate indexed to the Euribor (reference interbank interest rate, calculated daily, based on the arithmetic mean of the interbank rates in the Eurozone). 2 - Fixed Interest Rate: corresponds to a fixed interest rate agreed upon with the Financial Institution for a specific period of time. After the fixed rate period, the variable interest rate, indexed to the Euribor, applies.

You can choose from 3 types of installments: 1 - Constant Installments: the installment amount remains constant as long as there are no changes in the interest rate (for loans indexed to the Euribor). The installment is constant, but the interest and principal components to be paid are not necessarily equal. In the first installments, the interest component is higher, but over time the principal component increases. 2 - Fixed Installments: the installment amount is fixed during the agreed period, even if the interest rate varies or market conditions change (for loans indexed to the Fixed Interest Rate). 3 - Installments with Capital Grace Period: during an agreed initial period, only interest is paid, with no amortization of the loan principal. For this reason, the installment with a capital grace period is lower in the initial phase of the loan. After the grace period, the installments become principal and interest, which can mean a sharp increase in the installment amount to be paid.

Acronym for Total Amount Charged to the Consumer, which includes the loan amount, but also all other costs associated with home credit (interest, bank fees, taxes, and other charges) that will be paid throughout the loan.

The spread is a component of the loan interest rate. The value of the spread is established by the credit institution, on a case-by-case basis, depending on the credit risk of the clients, the relationship between the loan amount and the purchase/evaluation value of the property, and the guarantees presented. The spread is not the only relevant variable for comparing different credit proposals, so you should also compare the value of the APR (Annual Percentage Rate) and the total costs of each proposal.

TAEG means Annual Percentage Rate of Charge. The TAEG should be used to compare different credit proposals that have identical conditions, namely amount, term, payment method, and insurance.

The shorter the loan repayment term, the higher the monthly payment amount; however, since the loan amortization is faster, in the end, the total amount of interest actually paid is lower. In a loan with a longer term, the monthly payments are lower, but since the loan amortization takes more time, the total amount of interest to be paid is higher.

Yes, it is possible. During the term of the loan, total or partial repayment of the loan is allowed. For this, a fee is generally charged: in contracts with a variable interest rate, the fee may be up to 0.5% of the amount repaid. In contracts with a fixed interest rate, the fee may be equivalent to 2% of the capital repaid.

During the term of the loan, the credit institution must provide a monthly statement to track the evolution of the loan, which includes the following information: - Amount of Capital Owed. - Number, due date, amount, and nominal interest rate of the next installment. - Commissions and expenses to be paid in the next installment.