A personal loan is a type of financing is not finalized by which you get the loan of a certain sum of money to be used for personal purposes (the amount is paid in the contract without being given the purpose for which will be used). The amount borrowed must be returned according to an amortization schedule that also includes regular installment payment of interest (the interest rate remains fixed for the duration of the loan). The personal loan does not include the provision of collateral to protect the loan.
The personal loan belongs to the category of consumer credit is a loan not tied to the purchase of a product or service.
Who can apply for a personal loan?
The personal loan is intended only for consumers. It cannot be required from corporations or individuals who need a loan to fund its work.
Who can provide personal loans?
Personal loans can be provided by banks or finance companies registered with the Italian Exchange Office.
Amount of money may apply for a personal loan
the maximum amount that can be achieved with a personal loan is 31,000. There are also banks and financial institutions that provide small personal loans, are loans of small amount.
Amortization schedule personal loan
the rate at which returns the sum borrowed consist of interest payments and a share capital. The rates are constant that is always of equal value and are paid at intervals.
The cost of personal loans
the costs to be taken into account when considering a personal loan are:
- Expenditure on investigating the expenditure to be incurred after the start of the loan request.
- Insurance costs: Costs for any insurance to be signed to protect the loan.
- Costs of collection rate: In case of complaint with RID of monthly repayment, the consumer must also support the collection of fees.
- APR: The Annual Percentage Rate (APR) is the total cost of the personal loan and includes the cost of inquiries, the opening practice, collection rate and the insurance costs.
- TAN: The annual rate does not include additional charges, but is used to determine the repayment of the loan.
- TEG: The percentage rate is another indicator of the cost of the loan including all charges except the cost of insurance.
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