In a constantly evolving economy, with changes that are often very sudden, the possibility of accessing immediate liquidity at an affordable cost can be a solution to be able to meet the various needs of life. Not only can access to credit be useful for different purposes, from buying a car or an appliance, to consolidating debts, or making an investment, but also to be able to have cash available to meet the needs of daily life. Personal loans in recent years are a quick and easy way to access a sum of money. There are many offers from banks and financial institutions. Added to this is also a very wide range of online offers. But what are personal loans? How does any request work? Below we will analyze their characteristics in order to be able to better evaluate which loans are.

What is a personal loan: its characteristics

A personal loan is considered a type of loan that falls within the so-called consumer credits and is made by a bank or financial institution directly to the individual subject without a precise finalization. For this reason they are also defined as non-finalized loans. Specifically, it is a concession of an amount of money which must be repaid after a period of time by the debtor according to an amortization plan specified at the time of signing. The debtor will be able to use the sum granted for his own purposes and without having to justify any use of the money.

Accessing a personal loan is quite simple. The offers present are many, but the possibility of actually seeing the loan recognized is different. A series of elements must be taken into consideration in order to be able to obtain it and to make the most advantageous loan:

– documentation and guarantees: personal loans are loans in all respects. As such, a series of vestments are required in order to demonstrate one’s income capacity to the bank or finance company. At the time of applying for the loan, you will therefore be required to present documentation certifying your ability to fulfill the payment of the installments. For payroll or pension holders, there are no major problems in receiving funding. In the event that you do not have a permanent employment contract, as self-employed workers, you will need to submit your last tax return. It is important to consider that the existence of another loan may also affect the application, such as, for example, a salary-backed loan, or failure to pay installments of another loan in the past. Before asking for a personal loan, it is essential to regularize one’s positions;

– amount: the sum of money that will be established is calculated on the basis of the guarantees presented. If you have a pension or a permanent salary, a maximum amount will be calculated to be obtained based on the installments that can be paid by the debtor. The installment can never exceed the value of one fifth of the salary or pension. You can receive personal loans ranging from €1,000 up to €80,000;

– installments: the repayment of the loaned capital takes place on the basis of a number of installments which is established on the basis of the requested amount. It normally starts from 12 months to a maximum of 10 years;

– finalisation: there is no precise reason for requesting the loan, as in the case of a loan for the purchase of an apartment;

– interest rates: compared to other types of financing, personal ones have a slightly higher interest rate, therefore with a higher cost of the loan than other types. The motivation is the fact that they are aimed at the purchase of an unspecified asset;

– issue: a big advantage of personal loans is that of having very short issue times. Once the documentation has been ascertained and verified by a financial institution, 24 to 48 hours will be sufficient to be able to receive the requested sum in your account.

How a personal loan works: what are the ways to receive it

A personal loan request can be made at any time at a financial institution or credit institution. It can be very useful to compare the different types of offers that will be made in order to be able to take out the most convenient loan. Comparing rates such as the TAN and the APR can be very advantageous in order to take out a better loan. Once the bank or financial institution with which to make the loan has been decided, it will be necessary to go to the reference desk with the required documentation. Today it is also possible to make the process faster thanks to online platforms.

There are some finance companies that allow you to make the request directly on the web by sending the required documentation and then only signing up at the office. In any case, you will be asked for an identification document, tax code, any pay slip or pension slip or tax return.

In recent years, thanks to the presence of a greater number of financial institutions, the times for requesting and issuing a financial loan have been greatly reduced. For this reason, once the documents have been verified from the moment of the request, it will be possible to receive the amount within a maximum of one week. The repayment will take place through the established installment plan. Some loans also provide for the possibility of being customized with regard to the payment of installments. For example, it will be possible to skip one or more installments with a prior request, or change their number during the loan period. Before subscribing it is important to consider every aspect concerning the return method in order to be sure and certain of the commitment that you have decided to face. In fact, in some loans it will be possible to pay it off even in advance, while in others the payment of a minimum of installments is required after which it will be possible to close the debt without any penalty.