Recently, with the widespread adoption of smartphones, financial institutions have introduced an alternative way of obtaining money on favorable terms for applicants.  

In this article, we'll explore the concept of a smartphone secured loan. 

How does the smartphone guarantee loan work?  

This type of loan is similar to other personal loans.  

The procedure involves making a request, providing personal information, but in this case the collateral is your Android smartphone. 

But how exactly does this work?  

Before you can receive the loan amount, you need to install an app on your smartphone. The smartphone secured loan application allows the institution to temporarily block access to your mobile device.

Increasing security in relation to the payment of installments. 

In the event of default, i.e. if you don't pay back the loan, the cell phone will be blocked and can only be unblocked once the outstanding debt has been settled. 

Requirements for obtaining this loan As usual, the first requirement is to be over 18 to apply for a loan secured by a smartphone, whether it's a Samsung or another brand. 

You also need proof of income, either through a payslip or an employment contract.

If you are an Individual Microentrepreneur (MEI), self-employed or an INSS beneficiary, such as a pensioner. 

Having a current account is also essential for receiving the loan amount. And, of course, it is essential to have an Android smartphone for this purpose.  

Unfortunately, there are currently no options for loans secured by iPhones. 

Other data, such as CPF, ID, and contact information such as e-mail and telephone number, are also required. 

It is worth noting that companies can request additional documentation as necessary. 

Research source: Ikiwi