How to get a personal loan

The personal loan in a brief

The personal loan in a brief

Check it out

if all the requirements to apply for funding are met

Contact

banks or financial companies and ask for quotes

Compare

read and compare financing offers

Ask

if you have any doubts or if something is unclear

You choose

the best personal loan for your budget

Signature

the loan agreement at the branch or do everything online

To make some necessary expenses for the home and family, there may be no immediate availability, or that you prefer not to draw directly from savings.

 For this, there are personal loans, a form of a credit to consumers with which a bank or an authorized financial company pays you in a single solution a sum to be repaid in installments. The personal loan is a non-finalized loan, that is, not linked to the purchase of something specific. The finalized loan, on the other hand, is the type of loan that you can obtain from the seller of the good or service you buy a bond, for example at a dealership when you buy a car.

You can apply for a personal loan for home and family needs, but not for what concerns the professional activity: with a personal loan you cannot buy the equipment for your office or shop. Instead, a personal loan can be used to carry out small renovations at home, change appliances and furniture, face medical expenses, finance studies, go on vacation, but also to have more liquidity at hand.

How to get a personal loan, then? What are the requirements? Generally, you must be between 18 and 70 years old and demonstrate a certain income that covers the monthly installments to repay it: the proportion between installment and income must not exceed one-third. Therefore it is necessary to submit documents to the bank: for example, the payslip if you work as an employee or the tax return if you are self-employed. If you also have other loans in progress, the documentation must be presented.

When you ask for a personal loan, the bank evaluates your ” creditworthiness “, that is the reliability in repaying the loaned amount by paying all the installments on time. In addition to the certainty of income, this information is obtained from some databases. Such as the Central Credit Register and SIC, private credit information systems, in which data on loans obtained by individuals are stored, including delays and non-repayments of installments.

Furthermore, to obtain a personal loan, the bank may ask you for a guarantor, that is, a third person, with documented creditworthiness, who can pay in case you are unable to repay the loan. Another form of money-back guarantee that the bank may want is life insurance.

How much does a loan cost?

personal loan has a costinterest must be calculated, commissions such as the costs of opening the file and managing the loan, finally other expenses, such as taxes and any insurance. Some fees and expenses are fixed, so they weigh more on small loans.

The rates applied on the loan give you the measure of these costs. The TAN (nominal annual rate) is the interest rate net of commissions and expenses, while the APR (annual percentage rate) expresses the total cost of the loan, taking into account all costs. Be careful, therefore, when you hear about a ” zero-interest loan “: even if the TAN is zero, in reality, it is the APR that tells you if the loan is convenient.

The APR is therefore the parameter with which you evaluate more personal loan offers: you will always find it indicated in advertisements, in information material, and, of course, in the loan agreement. When you compare multiple quotes, they must refer to personal loans with the same characteristics: amount requested, duration, and several repayment installments. All these conditions being equal, the best personal loan is the one with the lowest APR.

Consult the personal loan proposals and make an appointment with our specialists to find the perfect loan together.