Do you need personal financing but you have some doubts or you don’t know how it works? Do not worry! We explain step by step how it works and everything you need to know before requesting it.
What is personal loan
The personal loan falls into the category of consumer credit and, specifically, is an unfinished loan . This means that it is not necessary to specify the destination of the credit requested and therefore to link the amount to a specific use.
The personal loan is provided by banks and credit institutions to private citizens.
Who is it for?
To apply for funding, you must have specific requirements , including being at least 18 years of age and having a demonstrable income from work or pension. It can also be requested by foreigners regularly residing in Italy and by the unemployed provided they have guarantees.
In order to apply for a personal loan, certain documents must be submitted. The necessary documentation is not the same for everyone but varies according to the situation of the applicant.
What do lenders evaluate before making a loan?
If the lender does not consider the applicant’s income sufficient, it is likely that he will request additional guarantees such as a guarantor , a mortgage or a joint account holder.
When the funding request is rejected
It may also happen that the lender does not accept the loan request because the applicant’s requirements are not satisfactory or is reported in credit information systems such as the Crif .
The delay in payments
If you have previously paid one or more installments of a loan late or even protested, it becomes really difficult to get a new loan. Why is it better not to delay the payment of the installments of a loan?
In this case, however, it is possible to request the assignment of the fifth of the salary or the assignment of the fifth of the pension because they are also dedicated to bad payers and protests.
The insurance policy
The insurance policy is not mandatory for the personal loan but it is mandatory for the transfer of the fifth . However, it is useful because in the event of job loss, serious economic difficulties, death of the holder, total disability or temporary disability, he reimburses the loan and therefore there is no risk of reporting to databases or protests.
The loan amortization plan
The amortization plan is a document containing all the information regarding the repayment modalities of the loan : the principal, the installments, the number of installments, the repayment modalities , expenses, charges and Tan and Taeg.
The Tan and Taeg rates of financing
The Tan and Taeg rates are important indicators regarding the costs of the financing requested, the expenses to be incurred and the interest due to the credit institution.
Renegotiation and early termination
It is possible to renegotiate an ongoing loan . To do this, it is necessary to re-request and re-submit all the necessary documentation. It will then be necessary to decide whether to repay the current loan and take out a new one, remodel it or request a debt consolidation .
Do you need financing? Request a free online quote now !