The personal loan is a loan granted by the contract, by a financial institution or a bank in favor of the client. The agreement governs the repayment period ( amortization plan ), the amount of the installments, the interest rate ( APR ). Unlike the finalized loan, it is not linked to the purchase of a good or service.
1. Personal Loan: What is it?
The personal loan is a loan in which an applicant, a customer, receives a sum of money from a credit institution (bank or financial institution) and undertakes to repay the sum by paying the amount received, plus interest and any incidental expenses. The contractor (as defined by the customer) repays the loan by paying an installment, usually fixed monthly, according to the agreed amortization plan.
The personal loan is a non-finalized loan, as no motivation is required that justifies the loan, and the loan is not connected to a good or service as can be done in the car loan. This characteristic of the personal loan makes it a very widespread product, since the purpose loan is not always allowed.
Unlike a loan or a mortgage, the bank does not have a specific guarantee in case of non-payment. For this reason, as a guarantee, it is possible that the bank requires the signature of a co-obligor (we will see later what it is), or a person who undertakes to pay the credit institution the payments, if the principal debtor (client) is unable to do so.
2. How to request it?
To request a personal loan there are 2 solutions :
- directly through a branch of a bank, financial institution or through a designated agent.
- through the web. In this case the request will be forwarded directly to the financial institution or bank by completing an online form on their site or on a comparator platform.
As an example, to better explain the dynamics in point 2, we report the page of a known financial company, Findomestic accessible directly from here. By accessing the page directly, you can enter your data and wait for the evaluation by the company. NB: in this case you are making a real request for funding and therefore, as we will see later, may cause you penalties.
The comparator, on the other hand, aggregates a series of partner institutions and, based on the characteristics of the client and his request, returns a list of solutions. Once the best offer has been identified, the client, selecting the proposal identified among the list, will be redirected to a new page in which, as in the case previously mentioned, he will have to enter all his data.
Also this type of request, as in the Findomestic case, will generate the sending of all this information to the credit databases. Among the best-known comparators we mention Prestitionline.it
3. Guarantees required
The basis for the success of a request is income stability. Those applying for funding must therefore demonstrate that they will be able to guarantee the regular repayment of the monthly deadlines to the institution. It is therefore necessary to perceive an income that may come from:
- paycheck, if dependent
- tax return, whether freelance or self-employed
Now, even if one of the aforementioned points is met, the bank or financial institution may require an additional guarantee or the involvement of a second signature (a parent or cohabiting person). This second income will reinforce the request and can give the right weight in order to guarantee the approval of the loan.
NB : whoever signs as guarantor or co-ordinate is responsible, as the applicant, for the regular amortization of the loan. Consequently, the payment delay of one or more installments will result in reporting as a bad payer in the credit databases.
4. What are databases.
The most famous of these is the global company, a private company that governs all information related to requests for loan, mortgage or generally for financing. In reality, the activities carried out by this company are many, but if we talk about databases, this is their function. They act as an information container, recording every single credit request made by the customer.
In addition to this, they track the outcome of the requests (if approved or rejected), of the regular amortization of a loan, how many loans have been stipulated, whether individually or with guarantor, and more.
Why do banks and financial companies question these systems? Before entrusting new liquidity, the granting institution wants to be sure whether or not it can trust a potential customer. By accessing this rich data source, the finance company will be able to determine when to approve a personal loan application or not.
For those who are reported, that is, for those who in the past had to pay the installments of a loan late, accessing a new loan will not be easy, but fortunately there are solutions.
5. When is it rejected?
The reasons for refusal are often due to the negative result of a database. In our blog we often read comments from our customers ” the bank has rejected my request because I have paid late for a loan ” or ” I can not make a new loan because everyone refuses the request because of some report “.
Generally the denial of a practice is combined with this cause, but it is not the only motivation. Below we list others, but it is not excluded that a rejection depends on a single case, not present in this short list.
- Uncensored : those who have never made loans
- guarantor for a loan paid in an irregular manner
- other requests made to other institutions
- insufficient income
- too much indebted
- recently has entered into another contract
Personal Loan: Great Offers!
Do you need liquidity to carry out your project ? Do you want to get married, organize a holiday, make an important gift? We are your salvation, always ready to help you!
Choose our company that for nearly fifteen years receives and fulfills numerous personal loan applications, all over the country. Evaluate offers and promotions offered by us and request a consultation and / or a free estimate without obligation.
By filling out the form you find here, we will forward your request. NB: the data will not be sent to the databases, so if you do not want to proceed through our company, you will always be free to rely on another institution, without penalties.