Taking out a loan is often the financial answer some people need to improve their budget.

The funds can also be used to invest in a small business, pay creditors and workers and settle larger obligations.

Want to find out which bank offers the best loans? Comparing interest rates is the first step. See our assessment below!

Which are the best credit institutions?

It's important to note that taking out a loan is also a kind of debt assumption. Until the total amount borrowed is repaid, you will be obliged to make monthly payments deducted from your salary.

In any case, these benefits are a must, and extreme caution is needed to ensure that they do more good than harm.

One suggestion is to look for a bank that offers more flexible payment options and also more favourable interest rates. These rates represent the amount of interest that will be added to the amount borrowed and must be paid by the consumer.

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The next step is to define, based on your profile, the type of credit line you want to apply for.

There are options for personal loans, payroll loans that deduct the instalments from the citizen's salary and secured loans that put an asset as a condition of payment. For each credit option, there is a different type of charge.

Discover the main lenders by type of loan

Now that you know the main low-interest loan possibilities, choose which bank offers the best credit options.

To compile this list, we analysed the rates reported to the Central Bank, as well as those of the most prominent institutions (which are accessible to the general public).

Best financial institution for personal loans

Caixa Econômica is the best bank for personal loans, as it offers the lowest interest rate for this type of loan. According to a report by the Central Bank, the annual interest rate starts at 29.54%.

The maximum payment period is 48 months and the bank offers four payment plan options (with pre- and post-fixed interest).

More options:

• Caixa Econômica: From 29.54% per year
• Banco BTG Pactual: From 38.74% per year
• Banco do Nordeste: From 42.42% per year
• Banco Pan: From 43.20% per year

INSS payroll loans

Banco Sicoob is the best bank for INSS salary loans. The best annual interest rate is 17.68%. However, it's important to remember that in order to apply for any line of credit, you need to be a member of the bank.

If you want to find out more about alternatives to this type of credit, here they are:

• Cetelem: From 18.33% per year
• Sicredi: From 18.37% per year
• Daycoval: from 19.39% per year

Best public payroll loans

Banco Inter is the largest bank for low-interest loans for civil servants. It offers financing with rates starting at 12.68% per year.

Based on the credit and payment period agreed, it is possible to generate an online quote and simulate the amount of the instalments.

What's more, you can sign up online and the bank says the money will be available within three days.

Consider the alternatives:

• Sicredi: From 14.32% per year
• Banco Sicoob: From 14.80% per year
• Banco Itaú: From 16.69% per year

Best private payroll loans

Banco Sicoob is the best bank for private payroll loans, with annual interest rates starting at 13.53%. Remember that membership is required to access this line of credit.

If you'd like to find out about the alternatives, take a look at the list below:

• BMG: From 19.30% per year
• Caixa Econômica: From 19.75% per year
• Banco Daycoval: From 20.50% per year

Best option for secured loans

The best bank to get a secured loan is Itaú, which charges an annual interest rate of around 10.30% for loans secured by property.

Take a look at the alternative options:

• BMG: From 10.60% p.a.
• Banco Inter: From 13.25% per year

Bradesco Payroll Loan - With the lowest rates, check it out!

Where can I simulate the best bank loans?

If you were interested in our study, already know which is the best bank to get a loan and want to simulate the loan with the bank, the best thing to do is go to the financial institution's website. Check them out:

• Caixa Econômica;
• Banco Inter;
• Sicoob;
• Itaú.