An unforeseen event, a wedding to be organized, a restructuring. a personal loan can help us in many situations, but choosing the most advantageous can be a difficult task. Comparing interest rates is important, but it is not enough to assess the overall convenience of the transaction. There are indeed many other aspects to consider, for example the credit institution’s reliability, ancillary costs, the transparency of the budget and the presence of insurance coverage. In this article we help you to clarify, offering 5 practical tips to find the financing that best suits your needs quickly and without stress !
1) Contact only qualified entities
Before comparing percentages and clauses it is essential to choose the right interlocutor. The easiest way to avoid running into improvised or not serious operators is to turn to entities registered all’MOOA, the Body of agents and brokers, composed of experts selected by the Ministry of Finance and supervised by the Bank of Italy.
Eye, therefore, the presence of the label MOOA, which certifies agents and reliable brokers, and accession to the MoU Assofin with Consumer Associations, a guarantee of respecting the rules and the dignity of the client.
2) Learn to read and compare interest rates
Once the professionalism of the credit institution has been ascertained, we can evaluate the conditions of the loan, starting from the interest rates. Be careful not to mess with:
- TAN (Annual Monthly Rate) : this is the parameter that indicates the interest to be paid annually on the loan granted, therefore the additional sum that we will pay each year in addition to the one received. It is split and added to monthly installments and does not include ancillary costs related to the loan.
- TAEG (Effective Goods Annual Rate) : from 2003 it must be indicated in all offers of loans and mortgages. Unlike the TAN, it also includes ancillary expenses, for example those related to the management of the file and insurance. It is an extremely useful indicator for assessing the convenience of a loan, because it simplifies the comparison between the different estimates.
3) Analyzes all the conditions, and in particular the insurance coverage
The convenience of a loan must also be measured on the basis of the safeguards it offers in the face of emergencies. With the Cession of the Fourthe, one of the most requested forms of financing and appreciated by Italian workers and retirees, insurance coverage is always included in the price, protecting you and your family from any risk.
4) Early repayment and renewal of the loan
Early repayment and renewal of the loan” />
Always check that the loan includes the possibility of settling the debt ahead of schedule, verifying the amount of any penalties or commissions for early repayment.
5) Is the monthly payment sustainable?
To avoid the risk of insolvency, the loan installment should not exceed 30% of the monthly income. It is no coincidence that the Cession of the Fourthe sets the maximum amount of the installment at one Fourthe of the net salary or net pension, equal to 20%, adding the convenience of the automatic retention in payroll.
Loans & Financing – historical agent – is proud to respect all the parameters we have just seen. Choosing our services means making sure:
- the maximum clarity and transparency with respect to interest rates;
- an insurance coverage complete;
- the possibility of paying off the loan early or renewing it;
- rate always within your reach ;
- a ‘ personalized assistance, even after the signing of the contract.
We have been working for over 20 years in the field of loans with Assignment of the Fourthe for employees and retirees. Contact our consultants to find out which formula best suits your needs, request a free quote now!