Personal Loans and Loans: What’s the Difference?
Personal loans are usually distinct from finalized loans: while the first may be required for any motivation, the second is required to settle the purchase of a particular good or service.
Targeted loans are a classic example of consumer credit. This is in fact loans granted to end consumers to encourage their purchases. In finalized loans, the dealer or dealer acts as an intermediary between the consumer and the financial company with which he has entered into an agreement. Financing timing is fast and even cost-oriented loans can be very convenient. It is not uncommon for these loans to be granted at a zero rate, allowing you to rate the purchase without having to worry about higher interest costs.
Targeted loans are the ideal choice when dealing with important expenses such as buying a car, home appliances or smartphones and expensive technology products.
Unredited personal loans are, however, required for a bank or a financial company. They are loans unblocked by purchasing a good or service and you do not have to indicate how the money will be used.
How to Find the Best Personal Loan
Once you find the form of financing that best suits your personal characteristics, it is advisable to compare offers from different lenders to find the most convenient one.
The first item to consider is the interest rate. In particular, attention should be paid to both the TAN, the nominal interest rate and the TAEG, the annual effective annual rate. TAN represents the remuneration payable to the creditor, indicates the interest rate applied to the loan and is fixed throughout the duration of the contract. TAEG expresses the sum of all the costs associated with the loan: in addition to the TAN, it includes the costs of inquiry, commissions, insurance costs and all other cost items provided by the contract.
The higher the APR, the higher the loan burden, so this is the value to be taken when compared to the personal loan offers of different intermediaries. In principle, therefore, it is always preferable to prefer offers that, with the same duration and loan amount, have a lower TAEG.
But beware: The cost of the loan is not the only thing to consider. Also the presence of personal or real guarantees is an element that needs to be carefully evaluated. For example, some people may prefer a slightly more expensive loan but do not require a guarantor while others may prefer the opposite situation and have a guarantor to get the loan shorter or cheaper.
In order to make a quick comparison of all the features of the financing, it is important to request the so-called SECCI form, which contains the basic European consumer credit information. The form lists all the contracted expenses, any insurance cover and the actions that will be taken by the bank or the financial institution in case of non-payment of the installments.
The form must also contain all the information useful to exercise the right of withdrawal and to proceed with the early extinction of the loan.
Facing so many alternatives it is difficult to orient yourself without an expert guide. For this, if you need a personal loan, entrusted to prestitipersonali.com. By comparing bank and financial offers, you can easily find the right funding solution to make your projects realistic.
Look for financing with the cheapest interest rate or the one that will provide you with the most repayable flexibility. There are loans that allow you to skip the payment of one or more installments without any additional charges or loans that allow you to change the duration of your refund.