The loan is an advance of money by a creditor (generally a bank or a financial institution) which provides to provide the loan against the payment of an interest. This money can be returned to the creditor in monthly installments or by settling the total amount directly in a single payment. The type of loan most used is that of personal loans.
The personal loans are “loans not finalized” as they are not tied directly to the purchase of certain property but is granted, on the contrary, without specifying the purpose. This type of financing, therefore, can also be requested only for liquidity. Precisely for this reason, the creditor, having a “higher risk” than other forms of credit (for example, there is a property guarantee for mortgages), asks for solid personal guarantees such as a paycheck or a tax return. and in some cases the signature of a guarantor.
Generally the loan can be disbursed for an amount ranging from a few hundred euros to 50,000.00 euros (but it is not excluded that the bank may also grant larger amounts) and can have a variable duration of up to 5 years. The finalized loans , on the other hand, are those loans related to the purchase of a specific good or service which is given as a guarantee to the entity that provides the loan and the amount disbursed cannot be used for any other purpose other than that stated. A clear example of this is the financing for the purchase of the car which is generally paid at the same time as the purchase of the vehicle directly at the dealership. Other examples are funding for the purchase of household appliances and those for the renovation of a property.
As we have said, the loans are granted upon presentation of an income guarantee with which the bank protects itself against non-payment. However, other types of financing have also spread today, including:
1) Loans without paychecks : these are loans granted to those who do not have a normal source of income from work (employee or self-employed) and for which the bank evaluates other forms of guarantees such as, for example, the ownership of a property in rent or signature of a guarantor;
2) Loans for bad payers : these are products designed to give credit to those who have had problems with the payments of previous loans and have been reported in Criff .
Loans and financing estimates
Today the world of finance has undergone a rapid change due to the spread of the internet and all the tools that are easy for people to use. Unlike a few years ago, in fact, today it is possible to search for a banking product directly from the home or office PC and to compare it, in a few minutes, with the other products offered by the various credit institutions. This meant that there was greater competition between banks and a better offer for customers who can now choose by taking advantage of a very wide range of offers and products.