Personal loan installment calculation: how to do?

The installment is the most tangible aspect for those who take out a personal loan. In fact it is with the installment that you will have directly to do in the repayment of the loan. But what does the amount of the installment depend on and how is it possible to calculate the personal loan installments? Let’s find out with the help of a simple example.

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The calculation of the installments: the detail in the amortization plan

Before explaining how the personal loan calculation calculation works, it is good to specify what is meant by amortization plan . In fact, the person who grants the personal loan must provide the subscriber with a document containing the details of the loan repayment plan. This document lists the number of installments to be returned, also indicating the deadline. It is good to know that the calculation of personal or online personal loan payments, as indicated by the amortization plan, takes place in a special way. Usually in Italy the French amortization plan is used, ie there is a constant installment for the entire duration of the personal loan. The calculation of the installment that is used to fill out the amortization plan does not, however, subdivide on all installments the principal amount and the interest portion , which are instead divided into variable proportions. We have explained in detail this subdivision in the schedules relating to amortization plans and installment. Here we recall that the first installments are made up mostly of interest, while as the rate progresses, the latter decreases in favor of the principal amount.

The formula for the calculation of the installment

The calculation of personal loan installments is not easy to carry out independently; however anyone can have an idea of ​​the amount of the loan installment even before signing, making an approximate calculation . Consider that the installment is given by the sum of the loan amount and interest , divided by the duration of the loan. Let’s take an example . Suppose a person has signed a loan of 10,000 euros to be repaid in five years with a monthly payment. Interest amounts to a total of 1,500 euros. The installment will therefore be equal to 10,000 euros + 1,500 euros, divided by 60, ie the number of months equal to five years. The monthly payment will therefore be equal to € 191.67.

From the example made, one understands how in calculating personal loan installments the determining factors are the interest , the amount of the loan and the duration of the loan itself. As the interest increases, so will the amount of the periodic installment, which will decrease with the increase in the repayment time.

Regarding the calculation of the interests, we refer to the specific guide. However, bear in mind that to evaluate this parameter it is always good to consider the interest called TAEG , which is more indicative than the TAN for the convenience of a personal loan.

If it is considered that autonomously calculating personal loan installments is too complex, or a more precise estimate of the real amount of the installment is desired, it is possible to use a personal online loan comparator , an instrument capable of simulating the amount of the installment and the duration of the loan simply by entering the parameters of interest.

 

Financial Personal Loans

What is meant by financial ? How do the loans provided by these subjects work and what are the differences compared to a bank? Let’s find out in this guide.

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What is a financial?

The financial term is commonly used to refer to a financial institution , ie a company whose business is related to financial products, such as loans, loans or intermediation. In order to carry out this type of services in Italy it is necessary for the financial institution to have specific authorizations for each type of product; moreover, it is generally not allowed that the same company carries out different activities that fall outside the scope of services related to the sector.

Bank vs financial: the differences

Image result for financial loanRegarding the scope of personal loans, there is no difference between the products promoted by the financial companies and those issued by the banks . The two subjects, however, are very different from the formal point of view, since as mentioned in the previous paragraph, the financial companies only perform activities related to the financial sector. In contrast, the services that banks can provide are much more extensive and differentiated from one another, even though in recent years even financial companies have increasingly expanded the services available, effectively bringing the field of action of the two types of subjects closer together.

 

How to get a loan from a financial company

With regard to the specific area of personal loans , obtaining a loan is subject to the assessment of the practice by the financial institution itself. At the time of requesting a loan, the financial company requests that the applicant’s identity documents , the last paycheck or pension slip (or the last income tax return) be provided. In addition, the financial institution usually requires the receipt of a paid user , such as an electricity, gas or telephone bill.

These documents are requested both if you are present at a finance office or online personal loans .
Subsequent to the request, the financial assesses the applicant’s profile to understand its reliability from a financial point of view. Once the practice has been assessed, the customer is notified of the disbursement, the rejection of the loan or the request for the presentation of further documents or additional guarantees , such as for example a person who performs the role of guarantor . In principle, obtaining a personal loan from the financial institutions is no different from what happens with loans granted by banks.

The best known financial institutions for personal loans

Many financial companies operate in Italy for personal loans. Here is a brief overview of the companies operating in Italy:

Agos : financial with offices throughout the national territory, also operates online and by phone. In addition to personal loans, it also offers different products, such as sales of the fifth, credit cards and loans. With regard to personal loans, the products available are different; among the many we point out the possibility of obtaining loans of even high amounts with a duration of up to 10 years.
Cofidis : international finance company specializing in the granting of small personal loans, with extended duration (up to 72 installments). It has no branches in Italy and offers exclusively online loans. In addition to personal loans, targeted loans and lines of credit are available.
Compass : is a company of the Mediobanca group. Widespread throughout Italy, offers the possibility to apply for personal loans online. Among the various products available are loans for the purpose and the assignment of the fifth. As for personal loans, Compass offers several products with different characteristics, such as the flexibility of the installment or the possibility of postponing payments.
Findomestic : part of the BNP Paribas banking group, it is a financial institution with branches all over the national territory that also operates online. It offers personal loans and products of different types, such as assignments of the fifth, mortgages and loans. It offers a wide range of targeted loans, in addition to general loans.

The financial indicated are only four of the best known , but bear in mind that there are many people who provide personal loans. To find the loan that best matches your needs, it is recommended to use a personal online loan comparator , which in addition to the best-known financial institutions, compares the loans offered by banks , including lesser-known (but not for this reason less expensive) or less reliable).

Getting a Personal Loan: How? The Requirements for Having it!

What are the necessary requirements to be able to access a personal loan?

They are of two types: the first is linked to the documents and the presence in Italy, the second concerns the financial profile of the applicant. Let’s find out in the details.

The documents necessary to request a loan

Image result for Getting a Personal LoanThe first step required by all banks and financial institutions is the presentation of documents attesting to their regular presence in Italy. For those who are Italian or of foreign origin, are in possession of the identity card and the tax code , the problem does not arise. The case is different for those who do not hold an identity card; in this case the presentation of a valid residence permit is required or in any case the presentation of a document attesting the legal permanence in Italy. For all Italians and non-Italians, it is often required to present a document that certifies the actual residence , such as a document issued by the municipality or a paid user (for example, an energy bill or a telephone utility) loan to the applicant).

Get a personal loan: the need for a guarantee

Image result for Getting a Personal LoanThe second type of requirements required to obtain a personal loan concerns the possibility of presenting a guarantee that certifies the ability to repay the loan that you intend to request. The guarantee requested may be of different types. The ideal situation for applying for a loan is to be in the condition of an employee , public or private, hired with a permanent contract for a prolonged period of time. However, it is understandable that this requirement is not available to anyone who requires a personal loan. To have a personal loan, however, the presence of a paycheck, or alternatively the pension , replaces a sufficient guarantee even in the case of fixed-term workers, although in this case usually the period of repayment of the loan is also reduced at the duration of the contract.

However, this does not exclude those who are not in possession of these requisites from the possibility of obtaining a personal loan. In fact, as a guarantee, the presence of a guarantor is often required, that is, a person who assumes responsibility for paying the loan if the applicant is unable to meet the agreed installments. In the absence of a guarantor, it is possible for the financial institution to accept movable or immovable property as a guarantee; for this purpose, for example, a limitation on the future pension, on the termination indemnity or on any insurance products already subscribed by the applicant at the time of requesting the personal loan can be requested.

In the absence of these requirements, some financial institutions offer the possibility of signing loans that have been changed , ie loans in which the applicant undertakes to repay the amount due through the signing of bills. It should be noted, however, that this form of payment is not widespread, and that banks and financial institutions prefer to identify alternative forms of guarantee before proposing the signing of bills.

How to have a personal loan if the required requirements are missing

What to do, however, if the requirements explained above are not present? In case of lack of documents that allow legal residence in the national territory, there is no possibility to access the credit.

On the other hand, it is not the case that one can not present one of the guarantees listed above. In this case, especially if you fall into certain profiles, such as that of protested , housewife , bad payer or student , you can find personal loans designed for your specific situation that most corresponds to the required requirements . Even if a loan is refused , it is always possible to contact a new bank or a different financial institution to explain their personal loan needs. To identify the subject that can meet their needs, it is possible to compare the products available on the market using an online comparator , a tool capable of presenting more financial products that meet the characteristics sought by the applicant.

Depreciation Plan Personal Loan

The choice of a personal loan involves the creation by the bank or financial institution who place the loan on an amortization plan . Let’s find out what is meant by this term, and what are the different types of amortization of a personal loan that can be applied.

What is a loan repayment plan?

The amortization of a personal loan means the pre-established plan that identifies the method and the timing with which the loan received will be returned. The installments identified by the amortization plan are made up of two parts: the interest and the principal shares .
In the amortization plan, in addition to the amount and frequency of the installment, the residual capital to be repaid after each periodic payment is also indicated. Depending on the type of depreciation used (the differences of which will be discussed below), the installment may be constant , ie equal for the entire duration of the loan or variable over time.

The different types of amortization plans

However, there is not only a way to define the amortization plan. The most common are the French , Italian , German and American amortization plan. Let’s analyze the differences between the different plans and find out what is the amortization plan for personal loans most used for loans in Italy.

The Italian amortization plan

The Italian amortization plan is also called amortization with constant capital shares . Its main feature is in fact to have installments made up of a constant share of capital, to which are added the interest calculated on that principal amount. The peculiar characteristic of the Italian amortization plan is that of not having constant installments , but variable over time.

The French amortization plan

Contrary to the Italian amortization plan, the French plan provides for the presence of fixed installments , the amount of which contributes a capital quota that increases with the passage of time and a portion of interest that, on the contrary, decreases over time.

The German amortization plan

The German amortization plan is similar to the French one due to the presence of a constant installment over time but provides for a first installment of a different amount. In the German plan the interest rate is paid in advance ; for this reason the first installment is composed in its value only by the interest due, while the subsequent installments have both components of principal and interest.

The American amortization plan

The last type of amortization plan is the one called to the American one ; this type of amortization plan for personal loans provides for the presence of accumulation shares at two interest rates. In summary, the US plan provides for the presence of a personal loan (or in general a loan) to which a parallel investment is added.

What is the most applied amortization plan in Italy?

Contrary to what might be expected, the type of amortization plan that is most used in our country is that of the French plan, that is, with equal installments. Nothing forbids, however, that in our country too different plans are applied. Questions about this specific feature can be asked to whom proposes the loan. In most cases, however, the presence of a cost installment indicates the application of the French amortization plan. This type is generally preferred precisely because it allows those who subscribe to the loan to be present at the time of subscription the amount of the installment to be paid for the return of the amount received.

However, nothing prevents banks or financial institutions from proposing different amortization plans compared to the French one, even if the application of different methods appears rather rare in the scenario of personal loans available on the market at the moment.

 

Comparing Personal Loans

The offer on personal loans is very diverse . What are the aspects to be assessed in order to identify the personal loan that is better or better suited to one’s own needs? Let’s find out what parameters are not to be overlooked before choosing with the help of this guide.

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What to keep in mind for a truly effective comparison?

The parameters to consider for a truly effective comparison between personal loans are different. They are divided into two main types: the specific characteristics of the personal loan and the methods of disbursement and collection .

The characteristics of the personal loan

The first aspect to keep in mind when comparing personal loans is the interest rate applied. Take care to evaluate both types of interest rate, ie TAN and APR , although the most significant of the two to assess the actual cost of a loan is the second. Even if the differences between one loan and another on the interest rate may seem derisory, the actual calculation of interest (to know how to independently calculate the interest calculation refer to the specific guide), can be of great help for consider the best loan for your needs.

Another aspect connected to the previous one is the amount of the monthly payment . The installment is calculated based on a formula that considers the amount financed and the repayment period ; however, identifying a maximum sustainable installment in advance is a winning strategy for comparing personal loans. In this regard, it is advisable to stay below the maximum sustainable amount for your financial situation, to prevent any unexpected events compromising the possibility of meeting the installment.

An additional parameter to consider when comparing personal loans concerns the costs to be incurred for the disbursement and repayment of the loan itself. For this purpose, the initial expenses to be paid for the start of the loan, the costs of preliminary investigation and the eventual periodic expenses , which may concern for example the cost applied for the collection of the monthly payment, must therefore be considered. Often these aspects are not immediately communicated to the loan proposal, but especially for low- cost loans could have a not inconsiderable impact on the final cost of the personal loan.

The methods of evaluation and provision of the loan

Image result for comparing loansLet’s move on to a second type of aspects to be assessed for the comparison between personal loans, that is the aspects related to the methods of evaluation and provision of the practice.
With regard to disbursement, the possibility of fully online lending should be considered in the comparison; in this case, those who sign the personal loan have the possibility to carry out all online transactions, with a considerable saving in terms of time. In addition, this mode allows you to request and send documentation at any time of the day, regardless of the work schedule of those who request and who provides the loan.

A second aspect to evaluate when comparing loans is the time needed for evaluation and issuing of the practice. Usually times are advertised by the lender, but please note that any problems in receiving documents or incomplete data could prolong the evaluation of the practice and the provision of the loan itself.

A last aspect to consider when comparing personal loans is the method of disbursement and repayment of the loan. Please note that in most cases the disbursement and return are made via a bank account . Those who have different needs must therefore carefully evaluate that these methods are not the only ones provided for the provision of the personal loan.

As can be seen from the above, the aspects to keep in mind to compare the various personal loans are varied. For this purpose it may be useful to use an online personal loan comparator , a tool that in a few seconds is able to compare the products offered by different subjects, without the need to enter the required data on the respective websites several times.

In addition to the comparison of personal loan rates , this type of tool allows you to view at a glance the main characteristics of the loans, such as initial expenses and the maximum amounts that can be financed.Before choosing between personal loans, we always recommend carefully evaluate all the aspects that make up the loan, considering in particular the parameters described in this guide.

 

Personal Loans Public Employees

If being employed in the private sector is an advantage for those looking for a convenient personal loan, being hired as a civil servant represents an even more favorable employment situation for those considering the possibility of applying for a personal loan. The advantage derives mainly from the stability offered by the employer.

 

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Working for the state: an extra guarantee for personal loans

As anticipated, working for the state , at any level and at any institution that can be included among the state bodies, represents a significant advantage for the worker. In fact, in assessing the feasibility of a personal loan, the financial institution or bank considers the solidity of the employer as a positive factor that usually makes it more inclined towards the acceptance of the loan application. In fact, those who evaluate the practices for a personal loan to state employees consider the fact of being hired by a public body as a guarantee of greater capacity to repay the loan received, due to the continuity of income that a government agency is able to to guarantee.

A special case of a public employee: INPS employees

Being a worker to the employees of the INPS , the institution that manages the national pension system, represents a further advantage for the worker. In fact, the same institution makes available to its employees loans at a reduced rate, reserved exclusively for those who are in the state employee status INPS. However, this type of loan is usually granted for rather small amounts and also the timing of repayment is often lower than other types of personal loans available on the market. For this reason, even in the case of INPS civil servants, it is recommended to compare the loan facilities offered by the institution with the offer of the market generally aimed at employees or specific for public employees.

Personal loans for fixed-term public employees

However, being a civil servant is not always a guarantee of obtaining a personal loan. In fact, in the case of fixed-term state employees, the characteristics required for the granting of a personal loan are usually more stringent than those required of a colleague working indefinitely. In particular, the employee hired with a contract and term may be required to reach a certain threshold of monthly income . Furthermore, it is quite common to request a minimum seniority threshold at the institution for which you are working or in similar jobs.

The age of the applicant could also be subject to constraints. Another important parameter for fixed-term workers, both public and private, is the duration of the contract, which normally affects the number of installments for the repayment of the loan granted. In fact, in most cases the personal loan is not granted for a period longer than that of the contract, a factor that sometimes precludes precarious public sector loans.

This derives from the fact that those who make the personal loan need to protect themselves against the actual possibility of payment by the borrower. Although true in principle, these characteristics of personal loans for public sector employees may vary depending on the subject who provides the loan. Therefore, even for this applicant profile, it is recommended to compare different financial products, as the characteristics between one loan and another can sometimes also vary significantly.

Is the personal loan for state employees always guaranteed?

Although as we have been able to specify working for a public body is a greater guarantee for those who provide the personal loan, this does not mean that being a public employee automatically corresponds to the granting of a personal loan. In fact, in addition to the employer and the duration of the contract, the practice of granting the personal loan also takes into consideration many other factors, first and foremost the profile of the applicant. In fact, even for a public employee, a determining factor is financial history .

The greater the repayment capacity of the loans demonstrated by the applicant and proportionally the greater the probability of receiving a loan. This does not mean, however, that if a person has had financial problems in the past or if the credit received has been automatically cut off from the personal loan market. As personal loans to protestants demonstrate, the credit market is increasingly differentiating itself to meet the needs of different types of applicants.

 

Personal Loans For Housewives

Approaching the activity of housewife to the possibility of obtaining a personal loan will seem to many people a practically impossible enterprise. In reality it is not so, as evidenced by the presence of personal loans for housewives available at many financial institutions and lenders.

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Loans for housewives: characteristics, amounts and durations

Personal loans for housewives do not differ in the basic principle from loans not dedicated to a specific category of people. However, even for housewives, it is normal to ask for a guarantee to protect those who issue the credit from any missed payments.

In the case of retired housewives, the presence of a monthly allowance, even if of a minimum amount, could already represent a sufficient guarantee. In this case it is usually proposed a bond on the check received or the signing of a transfer of the fifth, that is a mode of repayment of the personal loan that takes place through the deduction of a quota equal to a maximum of one fifth of the pension. In this case, the retired housewife does not have to do anything because it is the institution that issues the pension to send the quota established to the person who issued the loan.

In the case of the absence of a certain income, such as a pension, the housewife is usually required to present a guarantee of a different type, which in most cases consists of a guarantor , ie a person who signs the personal loan together to the interested party, assuming responsibility in case of non-payment of one or more installments. It is usually required that the guarantor has a certain and demonstrable income and is able to meet additional expenses.

Although it does not represent a valid rule for all financial products, it is worth pointing out that usually personal loans for housewives are offered for rather small amounts, with the most frequent cases that do not exceed a few thousand euros. Also the repayment period of the loan is usually reduced, but the duration as well as the amount of the requested installments vary from product to product.

Personal loans for housewives without paychecks or guarantees

Image result for personal loans for housewivesA separate chapter deserves the treatment of loans for housewives without paychecks or guarantees . In theory, nothing prevents a financial institution from granting credit to a person who is not able to offer guarantees, especially if the financial profile does not present negative aspects, such as a protest or the registration to a central risk as a bad payer .

However, we must point out that the provision of a loan for housewives without guarantees is not easy and that not all financial institutions and banks that provide loans are ready to consider the requests for this type of profile.

It is also worth pointing out that usually loans to housewives, especially if with limited guarantees, have higher average interest rates than those of less risky profiles, such as a permanent employee.

How to find the best loan for housewives

The recommended solution to find the best loan for housewives with or without guarantees, is to contact the largest number of financial and possible banks, perhaps using a loan comparison tool. This type of tool is very useful to evaluate online loans for housewives, as it allows you to identify products that match the characteristics of the housewife who requires the loan and its needs. The comparators are useful bikes even if the housewife does not have difficulty in obtaining credit, as they allow to compare interest rates and return conditions.

 

Personal Loans for Bad Payers?

Being considered a bad payer until a few years ago was equivalent to the impossibility of accessing personal loans and financial products in general. In recent years, however, this situation has changed considerably, as evidenced by the emergence of several personal loans specifically dedicated to bad payers.

Who is a bad payer?

According to the terms commonly used in the financial field, a payer is defined as a subject who in the past has not been able to cope with a financial commitment taken, such as the return of a personal loan or a mortgage. The inclusion of a person in the bad payers’ databases affects the possibility of obtaining additional personal loans, mortgages, credit cards and other similar products.

However, there are many products designed specifically for this category of people, as we will see later.
In addition to the inclusion of bad payers, the databases also consider those who, on the contrary, were able to repay a loan in the manner agreed upon. In this case the presence among the subjects deemed reliable has a positive influence on the possibility of obtaining a loan.

Bad payers with reporting to databases

To check the ability to repay a personal loan, finance companies and credit institutions consult some national databases, such as CRIF or CTC notes, from which you can learn about the presence of any non-payments from those who require the personal loan, know additional loans already granted or refused and then evaluate the overall profile of the applicant.

Please note that the registration of a subject in these databases is not however forever; in fact, after a certain period of time, the names of the bad payers are removed , unless in the meantime no further reports of missed payments or similar behavior have occurred. The time spent in bad payers’ databases is variable, but does not normally exceed 36 months .

Personal loans for bad payers: dedicated products

As anticipated, the condition of bad payer does not imply exclusion from any type of financial product. In fact there are numerous personal loans specifically dedicated to bad payers, with differentiations also based on the work and income situation of the applicants.

A first type is that of personal loans for bad employee payers; in this case, the presence of a continuous income is considered an additional guarantee that makes us lean towards the allocation of the loan. In some cases, a loan with a refund through a transfer of the fifth could be advised; in this way the employer returns the agreed installment, which is directly deducted from the employee’s paycheck.
A second type of personal loan concerns the bad self- paying payers, that is those who carry out an independent work activity. In this case the lack of continuity of income could affect the obtaining of a loan. Usually this category of bad payers is required to present the last two income documents (for example the Unico model ), to evaluate the actual income and the ability to repay the loan with respect to the income received.

For self-employed workers, as well as for bad payers who do not have enough pay, sometimes the presence of a guarantor for the loan can be requested. In this case it is requested that a person other than the applicant guarantees the possibility of repayment of the loan in the event that the applicant is no longer able to do so. Normally it is required that the third person is in possession of a paycheck , but the characteristics required vary depending on the type of personal loan required.

From the variety of bad paying profiles and the multiplicity of personal loans available for this category of people, it is clear that in this case too the comparison between different personal loans is the most suitable strategy to find the best product for your needs. Finally, consider that even for bad payers are available many personal online loans , which can be requested in a short time and without the need to go to banks or other subjects that provide loans.

 

Personal Loans for Private Employees

Being an employee , that is, employed by an employer other than himself, is one of the most advantageous conditions for those looking for a personal loan of any entity. However, this does not mean that other categories of people, such as housewives, students, pensioners or self-employed workers can not find a personal loan suited to their characteristics; however the condition of the employee, both private and public, very often facilitates the obtaining of a loan.

For which employees? Attention to the type of contract

Image result for loans for private workersWhen we talk about personal loans for private employees, we tend to refer to a worker hired with a permanent contract or in some cases also to those who have a fixed- term contract. However, this does not mean that all other types of contracts, such as partnerships , exclude the possibility of obtaining a loan; simply, the type of contract affects favorably the possibility of obtaining a loan, especially if for important figures.

However, it is good to consider that the type of contract is not the only parameter considered in the evaluation of a loan; in fact, the presence of further loans , the financial history of the applicant, as well as the amount of the loan requested also have an important impact.

Each personal loan for private employees, as for any other category, represents a specific product, with characteristics that may vary depending on the financial or bank that proposes the loan itself. For this reason, the comparison between different types of products will allow us to understand the specific characteristics of each individual loan proposal.

How to get a loan for private employees: the required documents

Getting a loan for private employees is a very simple operation. In principle, the presentation of an identity document and the last pay slip received is required. Foreign workers are also required to submit an unexpired residence permit. Depending on who issues the loan, other documents may also be required, such as a receipt from a user (such as an electricity, gas or telephone bill) to prove the actual place of residence or more than a paycheck .

Depending on the applicant’s profile, the financial institution or the bank with which the personal loan application is submitted may require additional documentation, although in most cases the necessary documents are the few indicated above.

In the event that the applicant’s profile is deemed unsuitable for the loan or at risk, or if the documented receipts are deemed insufficient to meet the payment of the installments , the issuer of the loan may require the submission of a guarantee , as for example a second pay check payable to a different person, who in this case assumes the role of guarantor of the personal loan.

A particular type of loan for employees: the transfer of the fifth

There is a particular type of loan for private employees, called the sale of the fifth . We take care of this type of loan in the dedicated guide; however it is good to know that this method of repayment of the loan received may in some cases prove to be advantageous for the employees. The reason derives from its functioning: in summary the employee receives the periodic salary (usually monthly) reduced by one fifth. This sum is retained by the employer who is responsible for forwarding it to the financial institution or to the borrower, without the employee having to do anything after the return method has been approved.
In the case in which a transfer of the fifth is chosen, it is necessary to present the documentation provided by the issuer of the loan, which requires that the authorization to hold the sum is forwarded and signed also by the employer.

The assignment of the fifth is usually granted to workers with a fixed- term or short-term contract, but the duration required and the possibility of disbursing the assignment of the fifth are variable depending on the financial institution making the personal loan. However, this specific modality is not reserved for employees in the private sector, but it is also extended to those in the public sector and to pensioners , that is to all those who can demonstrate a regular monthly income not deriving from self-employment. To know the specific characteristics of this type of loan, as well as to know the different types of personal loans available, refer to the other cards on the site.

 

Personal Loans For Unemployed!

The need for a personal loan, especially during a period of unemployment , is the most common in the personal loan landscape. However, this requirement often clashes with the element sought by those who offer loans and loans, ie the presence of a guarantee .

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Personal loans for unemployed: what guarantees?

If the guarantee most demanded by those who issue loans is that of a paycheck or a certain income as a pension , it is easy to understand how the unemployment situation can lead to difficulties in obtaining a personal loan. However, personal loans for the unemployed show that in fact obtaining funding is not impossible, provided that we can provide a guarantee of a different type with respect to the salary. The type of guarantee most requested is usually the presence of a guarantor , ie a person other than the applicant who is able to take care of any difficulties in paying the installments of those who have signed the loan.

In the absence of a guarantor, however, different solutions are proposed that vary depending on the financial institution or credit institution that issues the personal loan for the unemployed. Even if not frequently used, in some cases the guarantee required is the signing of bills (exchange guarantee). Some realities that grant credits to this solution prefer the use of a property to guarantee the loan, especially for large amounts or extended repayment periods. Other situations are the constraints on the possible treatment of termination or on life insurance policies already stipulated. In this case, however, it is usually required that the life insurance policy be earlier than a fixed period with respect to the request for a personal loan for the unemployed.

Personal loans for unemployed people without guarantees

A separate discussion deserves personal loans for unemployed people unable to provide a guarantee. Although present, we must point out that this type of personal loan is a minority compared to personal loans, although in some cases there is the possibility of access to low-interest personal loans specially designed for those who must face a period of unemployment. In case of absence of guarantees, or in any case in the event that the unemployment periods follow one another (as happens for example for those who are employed with atypical , occasional or short-term contracts), some financial companies offer insurance linked to personal loans, stipulated to cover any periods of unemployment. In this way both the underwriter and the issuer of the credit have the possibility to protect themselves in the event that the person requesting the loan is unable to meet the subscribed installments.

Periodically, also at the level of local authorities , loans are offered dedicated to the unemployed who reside in a given territory. It would be impossible to consider this type of personal loan here because the conditions and proposals are constantly changing. However, in the event of unemployment it is good to consider this possibility, not to neglect any road for obtaining personal loans.

How to find the loan for unemployed cheaper

From what has been said up to here we understand how the panorama of personal loans for the unemployed, online and through traditional channels, is very varied. As often happens every loan has different characteristics, which vary depending on the company that provides the loan itself and the proposed product . For this reason, a useful tool for identifying the loan for the unemployed is the use of a comparator , the tool that can compare many loans dedicated, selected according to the characteristics and needs of the applicant. Of course, this is not only valid for loans for the unemployed, but also for any other profile, such as retirees , housewives , employees or bad payers .

 

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