The personal loan is a consumer credit product which provides for the financing of a fixed sum at a fixed interest rate, and repayable according to a repayment plan in constant installments. It represents the most widespread form of financing in Italy and, despite a slight decline, it still resists the consequences of the economic crisis.
The advantage is that it is a non-finalized loan, and therefore it can be requested without having to justify the use that will be made of the loan obtained. Its provision is therefore not subordinate to the purchase of a specific good or service, and the bank gives its availability directly to the customer who requests it, without the intermediation of a contracted seller.
Although it is a non-finalized loan, it is advisable to communicate to the financial institution how the requested amount will be spent (also providing a quote countersigned by the shopkeeper, if possible).
In these cases, there is no relationship between the credit agreement and the purchase and sale agreement nor is there a collaboration relationship between the seller and the lender, but by providing this information it is possible to obtain more advantageous rates from the lender. In this sense, below you can access the detailed guides of the major personal loans declined according to specific purposes:
- Loan furniture
- Renovation loan
- Home purchase loan
- Liquidity loan
- Wedding loan
- Loan medical expenses
- Travel and vacation loan
It is possible to request a personal loan by contacting various distribution channels : banks, financial institutions, the web, where the advantage is that the offers are numerous, more easily comparable and have shorter disbursement times.
If, on the other hand, you decide to turn to traditional channels, it is important to know that a bank often takes longer to disburse the loan than financial intermediaries, but often offers more favorable conditions.
The elements of contract
The loan agreement must be entered into in writing and contain the following information:
- Exact indication of the amount paid
- Interest rate charged
- Specific indication of the annual percentage rate of charge ( APR )
- Any costs and commissions related to the contract
- Preliminary investigation and ancillary costs, such as the periodic reporting costs, any insurance costs and costs related to late payments
- Amount of installments and their due dates
- Indication of any guarantees and insurance required
Type of applicant
Financial institutions adopt their own criteria for the assessment of a personal credit application, within the framework of general directives and rules laid down by the BankItal.
In principle, the loan can be requested by people aged between 18 and 70, with “repayment ability”, who can therefore present the paycheck, the tax return or the pension slip in the case of workers employees, self-employed or retired, respectively.
The amounts that can be requested for a personal loan usually do not exceed 30,000 USD and the repayment of the sum can vary from 12 to 120 months.
Wear rates and Thresholds
Each quarter, the Bank of Italy publishes information relating to the average effective effective interest rates (TEGM) and the maximum rates for usury for each type of financial product (from overdrafts in the current account, to personal loans, up to fixed and variable rate). For personal loans in the quarter of April 1 – June 30, 2013 the average rate of personal loans stands at 12.10%, while the limit for the usury threshold rate is 19.125%.
Based on the ” development decree ” of 2011, the method of calculating the wear rate is determined as follows: TEGM x 1.25 + 4 (where the wear rate minus the average rate is less than 8).
When choosing the loan that best suits your needs, you must consider not only the nominal annual rate (TAN), but also the annual percentage rate of charge (APR), which shows the total effective cost of the loan. It is the indicator which includes, in addition to interest, the costs and accessory charges.
Only by considering the APR is it possible to make a transparent comparison of the products offered, of the same amount and duration.
Generally, the granting of a personal loan is not subject to the presentation of collateral (i.e. lien or mortgage on property belonging to the applicant). However, in order to limit the risk of insolvency on the part of the beneficiary of the loan, the institutions often request the presence of subjects that guarantee the payment of the loan.
This is a particularly widespread practice, especially in the face of a particularly high sum required, or in the presence of a subject with a particularly recent working seniority.
You can therefore opt for a co -debtor, who shares the responsibility of the credit, or for a guarantor, usually a family member of the debtor, who assumes responsibility in case of default.
Preesence of insurance covers
There are other forms of guarantees, such as the authorization to assign a part of one’s salary in the event of late payment, or the taking out of insurance coverage to deal with any unexpected risks such as death, illness, permanent invalidity or loss. temporary work by the applicant. However, these are optional policies, the cost of which must be taken into account, since it contributes to increasing the overall cost of the loan.
In general, the method of disbursement of the personal loan takes place with the introduction of liquidity directly into the applicant’s current account. In the same way, the reimbursement is managed by paying the installments directly from the current account or, in some cases, by issuing postal slips.
It is important to avoid both late payment of an installment and non-payment of an installment. In the first case, the institution warns the consumer, by sending the ” registration notice “, of the risk that his name may be reported to the Risk Centers.
The debtor can therefore provide for immediate payment, to avoid being indicated as a protested subject.
In the event of non-payment of an installment, however, the credit institution may decide to unilaterally withdraw from the contract, requiring the debtor to pay the sums due and the costs incurred for the recovery of the same, plus a possible penalty.
If you are afraid of incurring such consequences, you can apply for a flexible loan, which provides for the possibility of postponing the payment of one or more installments without incurring any penalty, or to take out an insurance that intervenes to settle the loan. in the event of permanent disability, illness or job loss by the contractor.
On Serlend we monitor day by day the conditions applied to all personal loans from affiliated banks and financial institutions and we update daily a table with the best offers of the day. In this way, our customers only need one click to discover the best personal loan today. Alternatively, you can fill in the form and make a quote to compare all the personal loans to each other and find those with the most advantageous conditions: it is simple and fast, and above all free and without obligation.