The personal loan is a method of loan without purpose , in the sense that, contrary to what happens with the mortgage or with a financial one, the obtaining of the money is not bound to the purchase of a house or a certain good.
This type of loan is the most free of those that the market offers today, and we can use it, as we will see later, for any type of expense , without having to explain anything in advance to the bank.
This mode of credit is the right one to obtain immediate liquidity to cover an old debt, to face a sudden expense or simply to take away that whim that you have been referring for too long.
Let’s see together what the features are , what are the guarantees necessary to obtain a personal loan and how to find the ones that are most suitable for you.
What is a personal loan?
We are talking about a small amount (hardly exceeding 20,000 euros as a granted sum), which you can use to obtain immediate liquidity for any type of expense, without the bank or the financial company placing restrictions on the destination of the money.
To understand, it is extremely different from the mortgage, where the sum that is granted for the purchase is then effectively tied to the purchase of a house.
You can therefore request it for any kind of need , without having to explain anything to anyone, simply by providing guarantees (which can be of different types, as we will see later).
Is personal loan worthwhile?
This type of loan is convenient to the extent that we need liquidity without it being tied to a purchase. This tool is ideal for those who need money quickly , without any demonstrable expenses or to prove to the bank.
It is worth recalling in this circumstance that it is still a relatively expensive method of financing, in the sense that on average higher interest rates must be paid than those of the loan.
This is because, as there is no asset of value to act as a guarantee, the personal loan is more risky for the bank, with the risk that, as an unavoidable law of finance, it becomes a meter to calculate the interest required.
However, by choosing a personal online loan, you can get access to liquidity almost instantly without having to pay very high interest, with a net saving compared to what is offered by the banks of potentially different percentage points.
How long does it take to get it?
The timing is generally very fast. We are not faced with complicated loans as in the case of the mortgage: typically online, these types of loans can be obtained even in less than 48 hours.
Extremely short times, compared to what is offered by banks both in the case of consumer loans , and in the case in which instead we had to request something more complicated, such as a mortgage.
What guarantees do you need?
Personal loans, like all kinds of money given by the bank, need guarantees. Don’t worry though, because you have different types of guarantee available to you that you can offer to the bank or intermediary that will provide us with the loan:
- the pay slip or any other type of provable income is more than enough to obtain it;
- In the event that it is missing, even the guarantee given by a relative or a friend may be sufficient;
- You can also choose to request a personal loan if you have a fixed-term contract : the banks grant it, provided that the repayment plan is shorter than the duration of the contract;
- You can also commit the fifth of the salary , as a further guarantee for the bank, which will receive the installment directly from the employer;
- in the presence of adequate guarantees (on all the assignment of the fifth) it can also be paid to protesters or previously insolvent debtors.
What documents do you need?
The documents needed to apply for a personal loan are few and simple:
- Last Pay envelope and CUD for those who are employed ;
- For those who are self-employed, the final tax return will be valid ;
- For pensioners, the last pension slip is sufficient;
This applies to financial documents. For the rest, a simple identification document and the tax code will suffice.
Personal loans: what does mean?
The TAN and the APR are two indicators of the expense that we will have to face for our loan, both in terms of management and of pure interests.
The TAN indicates the pure interest rate , which is applied to the loan you have requested. Although this is a very important indicator, it is the second of the indexes that we will talk about that should be more interesting for you.
The APR is in fact a summary index of the overall costs that your loan will have, including those of management and opening. You will have to try to compare this value between the different offers to bring home the best that the market can offer.
Is personal loan online worthwhile?
Yes. The offers you find online are extremely advantageous, even when offered by the same banks that you could physically visit.
Moreover, searching for the best personal loan online allows you to really get the most advantageous conditions, because in the digital environment, intermediaries and banks must fight for the lowest interest to grab customers.
Moreover, the time to release this type of personal loans, those that you can get online, are much lower. If you need immediate liquidity, this is really the best way to move.
On our site you will find guides and reviews on all the best loans in this specific sector. Keep following us to learn more and identify the financial product that can finally solve your temporary liquidity problems.