With loans for the home (renovation and furnishing) and for the purchase of a car (both new and used) that in Italy are the masters (representing about 60% of the total requests and 80% of the disbursed ), and not forgetting that with the crisis more and more people make use of the liquidity loan to reach the end of the month, it is useful to know what are the necessary requirements to obtain a loan .
First of all, it is necessary to know which bodies are in charge of disbursement of the loan, which are the purposes covered and which guarantees are required for the disbursement of the loan.
In Italy, banks and financial intermediaries registered in the appropriate registers are the subjects authorized to grant and provide consumer credit, whose main types include:
- the credit card , a consumer credit instrument with which it is possible to make purchases from the participating establishments, and whose payment is made on a predefined basis, usually monthly, in a single payment (credit card in full), or in installments with the addition of the payment of accrued interest (revolving credit);
- the Finalized Loan , a form of financing closely linked to the purchased good, which can be requested and obtained directly from the point of sale of the good and / or service (for example, the financing for household appliances and electronic devices);
- the Personal Loan , the most widespread form of financing in Italy, which provides for the loan of a fixed sum, at a fixed interest rate, repayable in constant installments; it has the advantage of being an unfinished loan, so its payment is not subject to the purchase of a specific good or service (unlike the finalized loan);
- the Assignment of the fifth , a type of loan that provides for the payment of the debt through deductions on the payroll or pension, up to a maximum of one fifth of the emolument itself, net of deductions;
Requirements to be able to get 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 institutions have an offer even for older people);
- a demonstrable income;
- residence in the Italian territory;
- be a bank account holder.
Secondly, the bank will evaluate the granting of the loan based on its own 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 insolvencies below a certain level . As regards the creditworthiness of the applicant, instead, an assessment is made which takes into account the relationship between the repayment installment and the income of the applicant which, in general, must not exceed 30%; in addition, the reports provided by the Central Risks (CRIF) are consulted, which record any missed payments or delays in repayments of previous loans.
As an alternative to traditional loan types, in cases where the applicant is registered in the lists of the CRIF, for him it is possible to resort to the request for the transfer of the fifth that, by 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 repayment rates of the salary assignment are higher than those provided by other forms of financing.
In addition to the minimum requirements, the financial company may request additional guarantees . While usually the granting of a loan is not subordinated to the provision of real guarantees (for example, of a mortgage), to limit the risk of insolvency often credit institutions require the presence of other subjects, the so-called co-obliged , who assume responsibility for returning the credit in the event of a customer’s default.
A further form of guarantee to protect creditors is the presence of insurance coverage , which is mandatory in the event of a salary assignment (coverage of the life and risk of the applicant) and of an annuity loan (coverage for damage from fire and explosion 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 simple operation; below are the two main elements you should consider before taking out a loan:
- the Annual Nominal Rate (TAN) : � the interest rate, expressed as a percentage and on an annual basis, applied to the financed capital that determines the interest rate which, together with the monthly principal amount, will determine the repayment rate;
- the Annual Global Effective Rate (APR) : � 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, of the preliminary investigation fees). Calculate the APR of your funding thanks to our calculation tool.
Therefore, in the comparison of two or more offers, the APR is the best element of comparison, since it takes into consideration the total cost of a loan, including all those ancillary 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 is reduced as the duration of the loan increases, while, for the same duration, the APR is reduced as the loan amount increases.
In any case, if you want to find the cheapest loan in a simple and quick way, make a quote on Viola.it and you will have the list of all the loans with the most advantageous conditions.
Delay or non-payment of an installment
Once a loan has been signed, it is important that repayment of the installments is made in a timely manner. In fact, failure to timely pay even a single installment authorizes the credit institution to terminate the contract unilaterally , while the client is required to pay all bank charges, protest charges and charges incurred by the credit institution to recover the sums due, in addition to a possible penalty.
Furthermore, the customer also risks being reported as a bad payer and that his name is included in 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
While previously the customer could withdraw only if the contract had been stipulated at a distance or outside the retailer’s commercial locations, the consumer currently has the right to withdraw within 14 days from the stipulation of the contract , without having to specify the reason , by sending a registered letter with return receipt to the financing institution . In the event that the loan has already been disbursed, the client will have 30 days to repay the capital and the interest accrued, as well as any taxes due. 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 client to settle the loan early with respect to the expected date of conclusion. The same will have to repay the residual capital still due plus a penalty, which cannot exceed 1% of the amount financed.
Is there a better time to pay off the loan? The amortization plan used by the Italian credit system is defined as “French” . This method provides for a constant sum of two components, the interest portion and the principal amount. A fundamental characteristic of French-style depreciation is that the first installments have a preponderant interest component, while in the latter, the weight of the principal amount is predominant. In other words, with the first installments, interest is repaid in particular and, with the latter, capital. This makes it extremely advantageous to pay off a loan at the beginning of the amortization plan compared to the end. The advantage is clearly more sensitive for long-term loans; if a 120 monthly loan can be paid off in the first three years, a very significant savings (in terms of unpaid interest) is achieved.
Moving on to the practical aspects, it should be noted that the termination of the advance loan takes place by sending a specific communication to the Credit Institution which must be sent by registered letter with return receipt. In addition to communicating the request for early repayment, it is necessary to request the so-called ” extinguishing account “, ie the count of the amount that must be paid to obtain the extinction of the loan.
Once this count has been obtained, the financed company proceeds to reclaim the amount communicated to it by the Bank or by the Budget. These, on request, provide a ” release “, or a declaration that certifies the termination of the loan.
Following the extinction of the loan, it is mandatory for the Financial Institutions to notify the various credit data banks and the various bank data providers of the early termination of the loan . This step is essential for the customer who wants to subsequently and again access the credit.
How to apply for a loan
Viola.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 Viola.it it is also possible to find offers for salary and pension assignment .
Thanks to the wide range of financing available on Viola.it, and to the continuous updating of the proposed economic conditions, it is easy to find the most convenient loan suitable for your needs.