The benefits of the Scotia Plan Loan are:
- Option to choose a loan plan with fixed or variable rates
- The total term of 5 years for payment
- Option to defer a monthly payment per year of contracting the loan
- Early payment does not generate fines or penalties
Why does our team recommend the Scotia Plan Loan to you?
Scotia Bank is the third largest consumer retail bank in the country, being a multinational bank that has branches spread across major countries on five continents.
It is a bank originally belonging to Great Britain and after its expansion found roots in Canada.
Its focus is to meet the needs of customers who are looking for lines of credit, which can be loans or credit cards, where they offer the most diverse products for this purpose.
One of the most popular products is personal loans, which are medium-term credit lines aimed at general consumption that usually do not require guarantees or guarantors to release credit, using your credit history and current income as support.
In this footprint, Scotia Bank offers personal loans with the option of a defined plan for the repayment of your loan, which is called a Scotia Plan Loan.
With the Scotia Plan Loan, you can choose to contract your loan with fixed or variable interest rates and define the repayment term, the due dates, and the total amount of the credit.
To facilitate your understanding, let’s first know what interest rates are and what the difference is between fixed and variable.
The interest rates are an addition to the requested credit amount for the benefit of the creditor bank, as the credit amounts are advances that the bank makes in your favor. Thus, one way to ensure that the bank is not losing money is to apply interest on amounts released to customers. Interest rates have several applicability and generally follow the inflation index of the domestic market. In the case of the Scotia Plan Loan, you can choose between two types of interest rates: fixed or variable.
A fixed interest rate remains constant over the loan repayment period. This means that the interest rate will not be affected by changes in market interest rates. When you get a fixed-interest rate loan, you know exactly how much interest you will pay each period and can plan your payments.
On the other hand, a variable interest rate may change over the loan repayment period. These rates are usually linked to a reference rate, such as the economy’s prime rate. If the benchmark rate increases, the interest rate on the loan will also increase, thus increasing monthly payments. If the benchmark rate goes down, the interest rate on the loan will also go down, which can result in lower monthly payments.
Author’s opinion
It is important to understand the financial system well before contracting a line of credit. In this case, the difference between the choice of the type of rate that will be applied to your loan directly affects the final amount of the debt and therefore must be studied with the maximum possible attention.
More conservative profiles will hardly be attracted to the variable rate modality, as this option’s uncertainty directly hurts your pocket.
In addition, the country’s economic situation speaks volumes at the time of this decision. Be aware of the news and research well before deciding on your loan!
A tip for your pocket
The Scotia Plan Loan is more than a credit product. This characteristic of choosing between interest rates and the freedom of planning the loan is a huge differentiator that only Scotia Bank offers.
Of course, other characteristics must be taken into account when choosing, but know that differentiated service is paramount when it comes to our financial health.
We present you with some of the characteristics of the Scotia Plan Loan, and we want to show you that the loan application process is very simple. Let’s see right now what they are?