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What to do to get a loan?

With loans for the home (renovation and furniture) and for the purchase of a car (both new and used) and in Italy they are the masters (representing about 60% of total requests and 80% of the disbursed ), and not forgetting that with the crisis more and more people are resorting to the liquidity loan to get to the end of the month, it is useful to know what the requirements are to obtain a loan.
First of all, it is necessary to know which bodies are responsible for providing the loan, what the purposes are covered and what guarantees are required for the disbursement of the loan itself.
In Italy, banks and financial intermediaries registered in the appropriate registers are the subjects authorized to grant and disburse consumer credit, the main types of which include:

  • the Credit Card, a consumer credit instrument with which it is possible to make purchases at participating establishments, and whose payment takes place at a predefined rate, usually monthly, in a single solution (balance credit card), or in installments with the addition of the payment of interest accrued (revolving credit);
  • the finalized Loan, a form of financing closely linked to the purchased asset, which can be requested and obtained directly from the point of sale of the asset and / or service (for example, financing for household appliances and electronic devices);
  • Personal Loan, the most common form of financing in Italy, which provides for the loan of a pre-established amount, at a fixed interest rate, repayable in constant installments; has the advantage of being a non-finalized loan, therefore its disbursement is not subordinated to the purchase of a specific good or service (unlike the finalized loan);
  • the Transfer of the fifth, type of loan that provides for the payment of the debt through deductions from the paycheck or pension, up to a maximum of one fifth of the emolument itself, net of the deductions;

Requirements for obtaining a loan

The requirements for obtaining a loan depend on the type of loan requested.
In general, the minimum requirements for all loans are:

  • in most cases, an age between 18 and 70 years (some banks and financial companies also have an offer for people of greater age);
  • demonstrable income;
  • residence in Italian territory;
  • be a bank account holder.

Secondly, the bank will evaluate the granting of the loan on the basis of its risk policies and the creditworthiness of the applicant. In the first case, each institution applies its own risk policy based on statistical data in its possession (credit scoring) in order to keep the insolvencies below a certain level. As regards the creditworthiness of the applicant, on the other hand, an assessment is made that takes into account the relationship between the repayment installment and the applicant’s income which, in general, must not exceed 30%; in addition, the reports provided by the Central Credit Register (CRIF) are consulted, which record any missed payments or delays in the repayments of previous loans.

As an alternative to the traditional loan types, in cases where the applicant is registered in the CRIF lists, it is possible for him to resort to the request for the transfer of the fifth which, proposing the appropriate guarantees of the employer for the employees (or of the INPS for pensioners), allows you to receive a loan even in the event of a bad credit history. However, it is important to remember that the reimbursement rates of the transfer of the fifth are higher than those provided for by other forms of financing.

In addition to the minimum requirements, the financial company may ask for ancillary guarantees. While usually the granting of a loan is not subordinated to the provision of collateral (for example, a mortgage), to limit the risk of insolvency, credit institutions often require the presence of other subjects, the so-called co-obliged, who assume responsibility for returning the credit in the event of customer default.
A further form of guarantee to protect creditors is the presence of insurance coverage, mandatory in the case of assignment of the fifth (life risk and employment risk coverage of the applicant) and lifetime loan (coverage of fire damage and outbreak of the property), optional in all other cases.

How to evaluate a loan

To choose the most convenient loan it is necessary to make an assessment of the economic conditions, considering the overall cost. However, this is not a very simple operation; the following are the two main elements that should be considered before taking out a loan:

  • the Nominal Annual Rate (TAN) : is the interest rate, expressed as a percentage and on an annual basis, applied to the financed capital which determines the interest portion which, together with the monthly principal portion, will determine the repayment installment;
  • the Annual Global Effective Rate (APR) : is a measure, expressed as a percentage and on an annual basis, of the total cost of the loan. In fact, unlike the TAN, the APR is inclusive of any additional charges to be borne by the customer (for example, the preliminary costs). Calculate the APR of your loan thanks to our calculation tool.

Therefore, in the comparison of two or more offers, the APR is the best comparison element, since it takes into consideration the total cost of a loan, including all those accessory costs usually excluded from the calculation of the TAN. However, it is necessary to remember that the comparison of the APR between two or more loans is possible only on equal terms (amount financed and duration).
In fact, it is useful to remember that, for the same amount financed, the APR decreases as the duration of the loan increases, while, for the same duration, the APR decreases as the loan amount increases.
In any case, if you want to find the most convenient loan in a simple and fast way, make a quote on Segugio.it and you will have a list of all the loans with the most advantageous conditions.

Delay or non-payment of an installment

Once a loan has been subscribed, it is important that the repayment of the installments takes place in a timely manner. In fact, failure to timely payment of even a single installment authorizes the credit institution to terminate the contract unilaterally, while the customer is required to pay all bank charges, protests and charges incurred by the credit institution to recover the sums. due, in addition to any penalty.
Furthermore, the customer also risks being reported as a bad payer and that his name is included in the lists of the Central Credit Register, with the consequent worsening of his credit situation and greater difficulty in obtaining future credit.

How to withdraw from the loan agreement

The consumer credit regulation, modified with the d. lgs. n. 141/2010 and entered into force in June 2011, has introduced important news regarding transparency and the right of withdrawal.
While previously the customer could withdraw only if the contract was concluded remotely or outside the retailer’s commercial places, currently the consumer has the right to withdraw within 14 days from the signing of the contract, without having to specify the reason, by sending a registered letter with return receipt to the lender. In the event that the loan has already been disbursed, the customer will have 30 days to be able to return the principal and interest accrued, as well as any fees due. However, no penalty can be applied to the consumer.
The right of withdrawal also applies directly to all ancillary service contracts linked to the loan originally requested (for example, insurance policies taken out to cover the credit).

Early repayment of the loan

According to current legislation, it must always be possible for a customer to pay off the loan in advance of the expected conclusion date. The same will have to repay the residual capital still due plus a penalty, which cannot exceed 1% of the funded amount.

Is there a better time to pay off funding? The amortization plan used by the Italian credit system is called “French”. This method provides for a constant installment of two components, the interest rate and the capital rate. A fundamental characteristic of the French amortization is that the first installments have the interest component as the preponderant component, while in the last installments the weight of the capital quota is predominant. In other words, the first installments mainly repay the interest and, with the latter, the principal. This makes it much more advantageous to pay off a loan at the beginning of the amortization plan than at the end. The advantage is clearly more sensitive for long-term loans; if you manage to pay off a 120 month loan in the first three years, you get a very significant saving (in terms of unpaid interest).

Turning to the practical aspects, it should be remembered that the early loan is canceled by sending a specific communication to the Credit Institute which must be conveyed by a registered letter with return receipt. In addition to communicating the request for early repayment, it is necessary to request the so-called ” extinguishing account “, that is, the calculation of the amount that must be paid to obtain the extinction of the loan.

Once this count has been obtained, the funded person proceeds to reclaim the amount communicated to him by the Bank or the Finance Office. These, upon request, provide a ” release “, or a declaration that certifies the extinction of the loan.

Following the extinction of the loan, it is mandatory for the financial institutions to communicate the early termination of the loan to the various credit databases and to the various bank data providers. This step is essential for the customer who wants to access credit again and again.

How to apply for a loan

Segugio.it the comparator loans, present in Italy for over 10 years, offering the car and motorcycle loans to restructuring loans, up liquidity to finance and debt consolidation. On Segugio.it it is also possible to find offers for the transfer of the fifth of the salary and the pension.
Thanks to the wide range of loans available on PrestitiOnline.it, and to the continuous updating of the proposed economic conditions, it is easy to find the most convenient and appropriate loan for your needs.

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The marriage loan.

The wedding loan allows you to organize an important moment, perhaps the most remembered, in the life of a couple with serenity.

The expenses to be incurred for the organization of a wedding (the purchase of the clothes, the wedding rings, the lunch offered to the guests, the photo album, the honeymoon, etc.) can significantly increase the necessary budget.

The couple facing this expense can be supported by two forms of financing: the targeted loan and the personal loan.

Finalized loan

Finalized loan

The finalized loan is offered directly by the retailer who has entered into a collaboration agreement with a bank or credit institution, and is tied exclusively to a specific product sold (e.g. honeymoon, or favors).

The finalized loan amount is paid directly to the seller, while the user must pay the credit installments in accordance with the amortization plan.

If a finalized loan solution is not available, or if the user needs additional liquidity, an additional form of financing can be used which is presented below.

Considering that the services / goods necessary for the ceremony are difficult to buy from a single store, very often it is necessary to add additional financing alongside the loan or the finalized loans.

In fact, a specific personal loan for the wedding or a transfer of the fifth of the salary can be coupled to the finalized financing. The finalized loan can also be completely replaced by a single personal loan for marriage, or by a single assignment of the fifth.

Personal loan for wedding

Personal loan for wedding

The personal wedding loan can be a valid opportunity, as it allows you to combine different expenses into a single debt, minimizing the costs of the investigation. On the other hand it offers a usually higher rate than the finalized loan.

To find the most convenient and suitable loan for your needs, you can access the online loan comparison section of Segugio.it.

Applying for a wedding financing can be an opportunity to make an unforgettable day. An analysis on the diffusion of this type of loan can be found in this article published by the PrestitiOnline.it Observatory.

Generally, the granting of a marriage loan is not subject to the presentation of collateral (i.e. lien or mortgage on property belonging to the applicant).

However, it may happen that in some cases, in order to limit the risk of insolvency, the lending institutions submit to the applicant a contract that provides for the change of installments, or a single bill, able to guarantee a part or the whole amount disbursed.

The most common form of guarantee is the signature of a co-obligee or a third-party guarantor, who will guarantee the success of the operation. This is a rather common request, in the presence of particular conditions (such as for example an applicant with a recent working seniority or for a particularly high amount).

In any case, it is not possible to establish rules valid a priori since any request for guarantees is at the discretion of the individual Institute which decides on a case-by-case basis, depending on the risk profile of the transaction and the individual applicant.

Marriage loan contract

Marriage loan contract

The law states that a marriage loan contract must contain the following elements:

  • the interest rate applied;
  • any other prices and conditions applied, including higher charges in the event of late payment;
  • the amount and methods of financing;
  • the number, amounts and due dates of the individual installments;
  • the annual percentage rate of charge (APR);
  • the detail of the analytical conditions according to which the APR can be possibly modified;
  • the amount and reason for the charges that are excluded from the calculation of the APR;
  • any guarantees required;
  • any insurance coverage required and not included in the APR calculation.

Failure to pay an installment

Failure to pay an installment

The interruption of the repayment of the loan implies the immediate default towards the lender and the risk of unpleasant consequences:

  • the interest due would be increased, with the application of a late payment;
  • there is a risk that your name will be included in the list of late payers and / or reported to the credit protection bodies (the Central Credit Register), which will share the information with the entire banking and financial system. The result will be a deterioration in the customer’s creditworthiness and a consequent greater difficulty in obtaining credit in the future.

Failure to punctually pay even one installment authorizes the lender to unilaterally terminate the contract. The customer will be required to pay all bank and protest charges as well as all charges incurred by the Institute to recover the sums due, in addition to a possible penalty.

The law states that it is always possible to pay off the loan in advance of the agreed term.

The customer who chooses to exercise this option will be asked to repay the remaining capital still due, plus a penalty which, by law, cannot exceed 1% of the amount financed.

If the contract does not specify the amount of the residual capital after each repayment installment, the sum of the present value of all the installments not yet expired on the date of the early repayment must be understood as residual capital.

Evaluation criteria

Evaluation criteria

Below we schematically illustrate some specific evaluation criteria of the marriage loan.

  • Risk policies : each Institute applies its own risk policy in evaluating requests, based on the statistical data it possesses (credit scoring). These data constitute the tool that allows the Institute to keep insolvencies below a certain level.
  • Income level : the acceptance of requests is normally also subject to the appraisal of the applicant’s income level and the relationship between the latter and any repayment installment.
  • Credit reliability : the creditworthiness of the applicant is of great importance. It is important to stress that this assessment has no “moral” meaning. The Institutes merely estimate the level of risk associated with each request, also on the basis of the credit reports provided by the Risk Centers. If the applicant’s credit history has some “flaws” (delays in repayments of previous loans, outstanding, etc.), the probability that the request will be accepted is obviously lower. In some of these cases, a valid alternative is constituted by the Transfer of the fifth, a solution which, by offering the appropriate guarantees to the lender, allows the adoption of more flexible evaluation criteria.

The economic condition

The economic condition

When choosing between several financing offers, it is good to consider the overall cost of each, without limiting itself to the evaluation of the monthly installment only.

However, this is sometimes not a simple operation, as the expense items of a loan can be numerous (amount disbursed, interest, ancillary charges, any initial expenses, insurance costs) and are not easily measurable immediately.

In general, the elements that should be considered before signing a loan agreement are:

  • TAN (Nominal Annual Rate)
    The TAN represents the interest rate, expressed as a percentage and on an annual basis, applied to the financed capital (sometimes gross of any insurance costs or preliminary costs). It is used to calculate, starting from the amount financed and the duration of the loan, the portion of interest which will be paid to the lending institution and which, added to the share of capital, will determine the repayment installment.
  • APR (Annual Global Effective Rate)
    The APR is a measure, expressed in percentage terms, with two decimal places and on an annual basis, of the total cost of the loan. Unlike the TAN, the APR is inclusive of any ancillary charges, such as preliminary costs and insurance costs, which are charged to the customer.
    However, the Italian legislation allows, under certain conditions, a certain discretion, excluding or including some items in the calculation of the APR: insurance costs, for example, if optional, can be excluded from the calculation.
    So pay attention and carefully consider your total expenditure, analyzing each time the individual items of the offer that is proposed to you.