Payday Loans

Personal payday loan for property purchase

Faced with the long and tedious procedures of the banks for the mortgage, many borrowers are tempted to circumvent this financing by using the personal payday loan which does not require him to provide supporting documents on the use of the sums.

A mortgage loan application will require a long study, the sending of numerous documents, and necessary proof of purchase concerning the property, whether it be a house, an apartment or a piece of land. The personal payday loan will go much faster, especially since the online simulators clearly facilitate the process and it will be possible to add the amount of work to be done if there is one.

The use of personal payday loans can allow a borrower to finance his real estate project but in certain measures. First of all, the amount of credit cannot exceed 75,000 dollars because the consumer credits affected or are not capped. Another specific point, the repayment duration of a personal payday loan may not exceed 7 years, which means that the monthly payments will be significant, not counting the borrower insurance.


Buying a property with a personal payday loan: the guarantees

Buying a property with a personal loan: the guarantees

A home purchase is certainly easier with a personal payday loan but insofar as the price of the property is relatively affordable. However, there are guarantees with the home loan for the borrower that the personal payday loan cannot provide, starting with the assignment. A personal payday loan is an unrestricted consumer credit, which means that obtaining it is not linked to any act of purchase. For the mortgage, if the purchase is canceled at the last moment, the mortgage will not be triggered, unlike the personal payday loan which will still have to be reimbursed.

Another important element, borrower insurance is very important in the context of a home loan and the offers associated with mortgage loans provide important guarantees such as temporary or permanent incapacity to work, death or even a period of unemployment. These guarantees can be added but will generally be less than for a mortgage. Finally, the rate will necessarily be higher on a personal payday loan than for a home loan, which can be more expensive.


Simulate a personal payday loan for your home purchase

Simulate a personal loan for your home purchase

Are you planning to buy a house, land or construction? It is possible to simulate a personal payday loan from the moment the amount is less than 75,000 dollars. The amount may include the purchase price, the costs and any work to finance to renovate the home.

The simulator will allow you to offer the best personal credit offers on the market, taking into account your situation and your need. It is a free and non-binding process.


The best loans for September 2019

The real new year begins in September, a decisive month to summarize all types of school or work activities and bring projects to fruition.

If you too have postponed an important expense after the summer, know that now the loan rates are truly at historic lows, even more if you choose an online loan.

What could make the further difference is the lending time, most of the strategic time for those who decide to take out a loan.


How important is the time for a loan


As we also report in Loans: the time to get them and the straight to reduce them, the fastest solution is a loan on the web. Digital signature, online documents and any other step necessary to complete the request, if made online, it will shorten the time of the procedure up to just 48 hours. But be careful, because time is always counted from the moment you attach and send the signed documentation.


The most convenient financing by purpose and time to obtain it

Choosing a loan on a comparator can therefore help to greatly reduce the time needed to obtain it. For example, Good Lenders provides in a few seconds the list of the best offers on the net depending on the purpose and clear and transparent information on how to proceed.


Best used car loan

car loan

If you request 10,000 dollars in the city of Milan for the duration of 90 months, Cream Bank ‘s Auto Credit has the best rate: 138.01 dollars , Tan 5.95%, Taeg 6.11%.

100% digital, it allows you to submit your request by signing online, while the management can take place from home via the web, telephone or agency. Once the ok has been obtained from the finance company, the bank transfer will be sent or the check will be sent within 2 days of receipt of the contract signed and accompanied by the required documents.


Best home renovation loan

Still the sum of 10,000 dollars but to be returned in 84 months has Younited Personal Loan as the best solution. The installment is $ 145.35 per Tan of 4.77% and Taeg of 6.01%.

Younited is a Digital Credit Platform made up of a community of private investors that lends directly to the community of applicants. The necessary investigation costs are in this case higher and this explains the slightly higher Taeg, in addition to the time required for disbursement: at the latest, within the fifteenth day following the communication confirming the granting of the credit.


Best liquidity loan

The most convenient financing by purpose and time to obtain it

Younited is still the best offer. For 10,000 dollars at 84 months the monthly payment is 148.58 dollars , Tan 4.77%, Taeg 6.72%. For the request it will be necessary to provide the personal recognition documents and those relating to the income received (paycheck, pension slip, or single complete PF model, in addition to the reference bank document that certifies the IBAN and BIC code.


Best decor loan

The same sum for the same period will have as the best answer again that of the Younited Digital Platform at a cost of 145.35 dollars , Tan 4.77% and Taeg 6.01%. The first installment will be paid no later than the second month following the date of making the total amount available to the customer.


Best Debt Consolidation Loan

Best home renovation loan

A sum of 5,000 dollars to be repaid in 60 months has Lite Lenders Personal Credit as its best loan. The installment is 97.07 dollars , Tan 4.90%, Taeg 6.55%. Debt consolidation allows you to group the loans previously requested from one or more banks into a single loan, with easier monthly installments than the sum of all loans that had been contracted at the time, but with longer times. In this case, the transfer arrangement is contextual to the definitive communication of a positive outcome and following the receipt of the contract, duly signed and complete with the required documentation.


How can avail a condominium loan?

Everyone has already experienced that things will get tight financially. In such a case, the relatives or the circle of friends are generally happy to help out. However, for many it is not feasible to ask relatives or friends for an appropriate amount of money. And a normal bank would immediately reject any loan application due to poor credit rating or a Credit Bureau entry. But that does not have to be the end of your financing wishes. A borrower has a good chance of getting a loan even with an unfavorable credit rating and without Credit Bureau information.

What do you need to take into account with a condominium loan?

As a borrower, make sure that the monthly repayment amounts of the loan are as small as possible. You shouldn’t put up with more than you can actually wear. Last but not least, good financing depends on low interest rates and good conditions. Many customers want a loan that is as adaptable as possible. This includes installment breaks for one or more months as well as special repayments without additional costs. All of this should provide good finance for condominium loans.

However, there are a few points that you should take into account so that nothing is put in your way as a student, self-employed, pensioner, unemployed, employee or trainee:

1. Only set the loan amount as high as absolutely necessary

In principle, the following applies: Anyone who has considered the subject of credit for condominiums should measure the funds required as precisely as possible right from the start. Anyone planning such a project must make a list of all expenses beforehand in order to always have an overview of their finances. Without a doubt, it would not be wrong to plan a small financial cushion, whereby the emphasis is on “small”, because if this buffer is too large, this would lead to high liabilities. For this reason, it is reasonable not to raise more money than is needed. It is better to compensate for the undersized needs by means of follow-up or top-up financing.

2. Draw up and structure a financial plan

If you want to take out a loan, you should realistically assess your financial situation and keep a close eye on income and expenses – also when it comes to credit for condominiums. For example, recording your own costs exactly every week is excellent: How much money is spent per day on what things? In fact, every single expenditure that has been made should be taken into account in order to really record all amounts. This has the advantage that it can be determined on the one hand where there may still be savings potential and on the other hand the optimal loan rate can be estimated quite precisely.

3. Be careful, accurate and absolutely honest

It is important to be careful, accurate and honest with all information about your own financial situation and creditworthiness – especially with regard to the loan for condominium, with all information about your creditworthiness and your own financial situation it is important to be accurate, careful and honest. You should allow yourself enough time to put together all the evidence and documents conscientiously. This is the only way to draw a serious, accurate picture of your financial situation, which in turn has a positive effect on the chances for an instant loan or an emergency loan.

What can a good mediator do for you?

The main activity of an intermediary basically includes helping to find a suitable “loan without Credit Bureau” at a German or foreign bank. The assistance extends not only to mediation, but is also often extended to include detailed advice for debtors. A really good broker will give you detailed advice on the financing offer by showing you the advantages and disadvantages. He will also support you in compiling all the necessary documents for the loan despite Credit Bureau application.

Advantages and disadvantages in mediation


  • Obtaining loans even with poor credit ratings
  • Advisory service before submitting the application
  • Assistance in compiling the application documents
  • Connections to lesser known banks and financial institutions
  • Reasoning aid for difficult personal circumstances or large amounts of funding
  • Good chances of cheap lending rates
  • Mediation of loans even with poor creditworthiness


  • Doubtful offers are not always immediately recognizable
  • Risk of obtaining overpriced loans
  • Possible fees for obtaining credit

Since many intermediaries have good contacts with lesser known financial institutions, there is a high probability of negotiating more favorable terms for condominium loans. Even negotiations in difficult conditions are easily possible. In the case of small banks, the applicant’s creditworthiness check is still largely carried out manually, so that the intermediary can credibly justify a negative entry in the Credit Bureau, for example.

Therefore, such an entry in the credit check is not as important as in a large bank, where such a procedure is largely automated. In contrast, with normal banks, a request for a loan for a condominium is usually hopeless right from the start.

This is how serious creditors differ from dubious credit brokers

This is how serious creditors differ from dubious credit brokers

An intermediary who is reputable will invariably act in your best interest when it comes to condominium credit. Since the agent receives his commission from the bank, you generally do not incur any expenses or other payments.

Reputable intermediaries can be recognized by the following features:

  • When you call, you can actually reach someone who gives a competent impression
  • You will receive specific information on target and effective interest rates, terms and loan amount
  • You do not pay any funding fees
  • The company has a website with address, imprint and contact options

The factors of a dubious mediator

  • Cash on delivery of the documents
  • Offers in the form of a financial restructuring
  • Unsolicited home visit
  • Costs are raised for the consultation and regardless of the conclusion of the contract
  • You will be promised a 100 percent loan approval
  • Financing depends on taking out residual debt insurance
  • Calculation of expenses or additional costs
  • The broker only takes action if you sign a brokerage contract

The Advantages of Foreign Banks on Condominium Loans

The Advantages of Foreign Banks on Condominium Loans

The financing of larger projects via foreign financial institutions is becoming more and more popular. This is not just a new car or a planned vacation trip, but also {the strong capital for opening your own business}. In addition to the normal route to a house bank, consumers have now discovered the Internet to take out a loan from a foreign bank that exactly meets their needs. Choosing a credit institution abroad has the advantage that the lending guidelines there are considerably easier than with us in Germany.

For credit for condominiums, an insufficient credit rating or a negative Credit Bureau entry are therefore not so important. Such online loans are generally granted by Infra Bank. This situation could be particularly interesting for borrowers who have been rejected by Cream Bank and who quickly need an injection of money. These include, for example, the unemployed, trainees, the self-employed. Students, probationary workers or retirees. These people in particular find it difficult to get a loan when it comes to condominium loans.

Which is why a Swiss loan is a good alternative

Which is why a Swiss loan is a good alternative

It is often difficult for a private individual who is in a tight financial situation to obtain a loan. The reason: The chances of financing are significantly reduced with debt or with poor creditworthiness. In such cases, a so-called “Swiss loan” would be a reasonable option. This means a loan that is approved by a Swiss financial service provider. A negative Credit Bureau entry is irrelevant for these institutes, because there is no such request in general, which makes it extremely easy to find a loan. This is especially ideal when it comes to the loan for condominiums.

Obtaining a loan without checking the creditworthiness as well as various proof of income and collateral is logically not possible even with Swiss financial institutions. If your only concern is the Credit Bureau entry, but your credit rating is okay so far, the Swiss loan for condominium loan would be a realistic option.

This is how credit for condominiums certainly works

Many consumers who are looking for a condominium loan or “despite poor credit rating” generally think of a “loan without Credit Bureau”. Nevertheless, the creditworthiness is checked equally by all renowned financial service providers. Because in addition to Credit Bureau, there are other credit bureaus that offer such a service.

Strictly speaking, everyone has a scoring at the largest credit agency in Germany, Credit Bureau. If you have a credit card or have opened an account with the bank or savings bank, such a value has already been created for you. In this way, you don’t get a “loan without Credit Bureau” from {a bank}. However, what could work is a “loan despite Credit Bureau entry”. Paradoxically, many consumers mistakenly think that they have a “negative Credit Bureau entry”, although the statistics convey something completely different: the {large part} of the entries are positive

It is best to check beforehand whether the Score Index is really so negative that it might be difficult to approve your loan application at a bank. Once a year, Credit Bureau allows companies and private individuals to query the “Credit Bureau Score” free of charge. Since 2010, it has been possible to obtain self-disclosure to see what information is stored at the credit agency.

According to the Federal Data Protection Act (BDSG) § 34, you are in principle entitled to this information free of charge, once a year. You can request your own score (Credit Bureauscore) and information about whether any institute has obtained information about you in the past few months from “MeineCredit Bureau”. Your scoring depends on various “ratings”. These ratings can range from 1 to 100. 100 is the best score anyone can get. In this case, an extremely low probability of failure is assumed. Defaults on the other hand are much more likely to occur if someone only has a score index of 50.

Our tip: This is how you can “delete a negative Credit Bureau entry”

Due invoice not paid – this has happened to everyone. There can be various reasons for this: You were currently in a financial bottleneck, were on vacation at the time or had a new postal address due to a move. An unpaid mobile phone bill can also cause problems. The loan application that was submitted is rejected due to an unfavorable Credit Bureau. It therefore has consequences for applying for a loan if the request for payment leads to a reduction in the score.

On the other hand, as a consumer, you can have a bad entry deleted at Credit Bureau. Enormous amounts of data are stored at the credit agency. As a result, the information provided may often be out of date or incorrect. In any case, as a consumer, you should exercise your right to self-disclosure in order to have old entries removed. You can request such deletion directly from the credit agency. However, the removal will only be implemented on the condition that the claim has been paid within six weeks and does not exceed USD 2,000.

Deletion of Credit Bureau data – your data at Credit Bureau

The Credit Bureau data will be automatically deleted after a certain period of time without any action on your part. For example, this happens with:

  • for information about inquiries after 12 months; This information is only passed on to Credit Bureau contract partners within 10 days
  • for loans to the day, 36 months after the year in which the loan was repaid in full
  • for reports on unpaid claims, each after a period of three full calendar years (that is, at the end of December 31 of the third calendar year following the entry)
  • in the case of claims from mail order companies, if these have now been paid

The advantages of a Swiss loan

Individuals with money problems can often not get a loan. The reason: The chances of financing are significantly reduced with debts or poor credit ratings. A Swiss loan can be a real option in such cases. It means a loan from a Swiss credit bank. Since such banks do not carry out Credit Bureau queries, there is no obstacle to finding credit. When it comes to condominium loans, this is a priceless asset.

Of course, even with Swiss financial institutions, you cannot get a loan without checking the creditworthiness and various collateral and proof of income. If it is an entry in Credit Bureau alone that worries you about financing, Swiss credit could be a realistic option for you, provided your credit rating is so far in the green.

What is the “APR”

In the case of a loan for a condominium, due to the greater risk, the loan costs are sometimes somewhat higher than normal. The “effective annual interest rate” or “effective annual interest rate” plays an important role. The annual cost of a loan related to the nominal loan amount is referred to as the “APR”. It is declared with a certain percentage of the payment amount. For loans whose interest or other price-related factors can change during the term of the loan, this interest rate is referred to as the initial “annual percentage rate”

A fixed borrowing rate is agreed when a loan is taken out for the full term. In plain language, this means that regardless of the numerous fluctuations in interest rates on the capital markets, the nominal interest rate on which the “loan” is based remains stable. If you value planning security, a fixed borrowing rate would be just right for your loan. The interest rate on the “loan amount” therefore remains unchanged throughout the credit period. So you are permanently protected from the unpleasant surprise of a rate hike.

What does the loan term mean

A loan can have very different repayment terms, which are essentially defined by the loan term that the borrower chooses. This means that the longer the “loan term” is selected for a loan, the lower the individual installments that the borrower has to repay, and vice versa. It is therefore worth considering the various options with regard to the loan term. Please note that some loans have a limited selection of terms.

What exactly is the term of the loan or loan term? Simply put, this is the time interval from the payment of the loan amount until it is fully repaid. The duration actually depends on the amount of the nominal interest and the repayment. The term is understandably primarily influenced by the repayment rate. With a relatively small repayment amount, it will of course take a comparatively long time to fully pay the loan amount and thus the loan including the processing fees. By the way, there are special loans with very long terms (at least five years). These are known as long-term loans.

What are loan fees

Loan fees are often referred to as a processing commission, closing fee, loan processing fee or processing fee. These fees are usually the costs that the credit institution was allowed to calculate until 2014 for the effort required to process an application for a loan or a credit request. In May 2014 there was a change in the law on this subject. The calculation of the “loan fee” for activities in connection with a loan request was declared unjustified.

Incidentally, this also applies to determining the creditworthiness of the borrower. Currently, processing fees depending on the respective loan may no longer be required since 2014. In general, these costs were approx. 1 – 3 {{percent}} of the loan amount, for example, for a loan of USD 10,000, already USD 150 to 450. Processing fees that have already been paid by borrowers for the loan request or the loan application can therefore in principle be reclaimed.

What is a lender

Lenders, as legal or natural persons, lend money to the borrower or borrower for a certain period of time at an appropriate interest rate. Legislation generally speaks of the “lender”. In this context, however, one often hears the terms “lender” or “creditor”.

For the lender, a loan is associated with a considerable risk of default, which is why a higher interest rate is predominantly required. Lenders can include an insurance company, a credit bank or a building society. Of course, borrowers also have rights and obligations that are laid down in the German Civil Code.

What is the monthly rate

What is the monthly rate

“Loans with poor credit ratings” are also to be repaid in individual monthly installments. For loans, the monthly installment contains a significant component – the interest rate. The bank calculates the interest rate based on the prices currently charged for interest on the capital market. The borrowers later pay this interest plus a corresponding surcharge for their loan.

Another important component in the “monthly installment” of loans is the repayment. The borrower normally determines the size of the repayment rate depending on his income. With {longer-term loan contracts}, the repayment is usually one percent per year. Should the loan amount and thus the loan amount z. B. are repaid in a shorter period of time, the borrower chooses a higher repayment. On the other hand, the monthly charge – depending on the amount of the repayment amount – is then significantly increased.

In particular, it is the interest rate and repayment that mainly result in the monthly installment for loans. In most cases, however, the monthly installment for loans also includes the brokerage commissions from the credit intermediaries and the processing fees charged by the banks. Although these costs are almost always included in the interest, on the other hand they are part of the total monthly loan.

What is a debt rescheduling loan

What is a debt rescheduling loan

When rescheduling, a person tries to obtain a loan to use the money to pay for an existing loan that was taken out at a more expensive rate. This financing model is also called a debt rescheduling loan. Debt restructuring also makes sense if different loans are to be combined into one. You can therefore disclose more than one loan for debt rescheduling. It goes without saying that the “debt rescheduling loan” is not taken out from the same bank, but from another bank. Nevertheless, financing for a debt rescheduling can in turn be taken from the same bank.

You see, debt restructuring has several advantages. The basic purpose is, however, that the debt rescheduling loan means that you will have less financial expense than before after taking up your new loan. It can help you save money if the interest is even marginally cheaper.

What is the total loan amount

What is the total loan amount

The total loan amount includes all fees that the bank additionally charges the borrower for an approved loan. It is therefore not just the amount of the loan taken out, but the total amount including all ancillary costs that the customer repays to the financial institution within the term of the loan. What exactly are the costs and which are added to the pure loan amount? These are any processing fees or commissions as well as the total interest payable. Since all “fees and expenses” are included in the “total loan amount”, this may be considerably higher than the nominal amount of the loan.

The {costs} for taking out residual debt insurance in the course of borrowing also belong to the total loan amount.

What is the loan amount

What is the loan amount

If the borrower is approved, the loan amount is then paid out net. The payout may be lower because the “loan amount” is not paid out in full as a total. This also applies to a loan or a “Swiss loan”.

When a loan application is made for a loan amount, the bank determines the commercial balance sheet for a commercial applicant and the available income for a private person. A second aspect is the size of the loan amount. The applicant’s income is checked for a loan amount of USD 300.00 in the same way as is usual for a loan amount of USD 100,000.00.

A fixed monthly installment for repayment within a certain period of time is generally agreed for the loan amount. As far as these loan terms are concerned, they are always laid down in the loan agreement. If the borrower has the corresponding monthly income, he can repay the loan amount even before the contract expires. Whether these special repayments are subject to fees or are offered at no charge must be found in the respective financing contract. If the last installment was finally paid, it can generally be assumed that the loan contract will also automatically expire. Approval of a new loan amount must be agreed in writing by the borrower with the bank.

What are the credit rating criteria

You cannot get a loan without checking the creditworthiness. The credit rating is based on the result of the credit check and determines the surcharges on the loan. The result depends primarily on the “creditworthiness criteria”. In principle, the credit bank charges lower interest rates with an excellent credit rating. If the credit check gives a good result, it undoubtedly has considerable advantages. Each bank usually has its own credit rating criteria, which often differ significantly from those of other financial institutions. However, there are no differences between the individual banks in the credit rating criteria. All of the factors listed are also the same for every borrower.

  • What is the monthly earnings?
  • What is the employment relationship like?
  • Is the borrower a contract agent, officer or official?
  • Who’s the employer?
  • Where is the borrower’s place of residence?
  • Are there entries at credit agencies such as Credit Bureau etc.?
  • Does the applicant keep a budget book with an input-expenditure account?
  • Are there assets in the form of land or real estate?
  • What is the marital status?
  • Are there any guarantees and loans?

These are the prerequisites for a condominium loan

These are the prerequisites for a condominium loan

For your desired loan, you can influence the decision of the loan broker to your advantage. However, the following preconditions must be met for this:

  • Legal age
  • German address
  • Account with a German financial institution
  • secured monthly income
  • sufficient creditworthiness
  • for earmarked financing, collateral such as a car or property

A so-called private loan or credit private, which various credit intermediaries offer, can usually be obtained despite a poor credit rating. “Lending money without Credit Bureau” does not work through a normal bank. Instead, one or more private individuals appear as lenders in this case.

Notes on condominium credit

Notes on condominium credit

If you want to apply for financing with a bad Credit Bureau score or unfavorable Credit Bureau, then first think about whether you are able to repay the loan without any major difficulties. It is usually not without reason that the bank rejects a loan application.

Please keep the following in mind: It is one of the main business principles of lending banks that as far as possible all loans that {consumers receive} are repaid on time with interest. The financial institutions are clearly very interested in lending. If payment behavior was previously very inadequate, it can be expected that there will still be no timely repayment. Therefore the application will of course be rejected. But even with a positive Credit Bureau, the loan application can be rejected. This is the case if the necessary funds are insufficient or the minimum income is so small that the loan cannot be repaid.

When it comes to applying for funding, such as a “loan without Credit Bureau”, it would be advantageous to compare your income with the monthly expenses as realistically as possible. This procedure makes it easy to check whether there may be difficulties with the repayment later. Unfortunately, very few people initially think that long-term financing can sometimes lead to financial bottlenecks and then it will be difficult to pay the loan on time. This could be, for example, the broken car, a damaged fridge or a high payment request from the tax office.

There is the option of competent advice on a “loan with Credit Bureau entry”, and that from a professional credit advisor. You get exactly the support you need, because on the one hand you get excellent advice on how to really find the right offer and on the other hand you have someone at your side who can assess your financial situation with you if necessary. People who do not inform themselves sufficiently about a carefree “taking out a loan despite Credit Bureau” are often caught in a debt trap – with unforeseeable economic consequences. In addition, the loan broker can provide expert advice on the aggregation of various loans, that is, “debt restructuring despite Credit Bureau”.

If your Credit Bureau score is not sufficient, the financial institution may refuse a “credit with Credit Bureau” or a “credit with Credit Bureau entry”. Definitely call up your Credit Bureau score once a year. It costs nothing and you can be sure that everything is correct. If not, ask for the removal of incorrect or outdated data.


Over-indebtedness: requirements and functioning of law

The difficulties related to over-indebtedness became very evident especially in the years following the crisis that started in 2008. Among the most evident effects there was an increase in suicides that involved entrepreneurs but also private individuals, crushed by the weight of a debt exposure no longer sustainable.

Financial problems are sometimes due to tax issues, such as heavy Nice bank files or simply to a reduction in income due to unemployment or other similar reasons (further information: What to do in case of debts with Nice bank ).

Precisely for this reason, in January 2012, Law No. 3 was approved which became active in February of the same year and which was defined as the Law on over-indebtedness or the Save Suicide Law. Let’s see the main features.

What is it about? – procedure of debt relief accessible

What is it about? - procedure of debt relief accessible

In practice, this law introduced the procedure of debt relief accessible to non-fallible subjects, which allows you to reorder your debts and make them more sustainable. How? By compiling a plan that is feasible and sustainable in certain and defined times. In compiling this plan, some debts can be excluded, obtaining a reduction in their weight, which can go up to 80% less.

However, attention must be paid to the key aspects of this law, which are the sustainability of the repayment plan and above all its feasibility. It is therefore not a possible way to be used to escape the obligation to repay debts or to avoid paying Nice bank bills. Indeed it is necessary that the possibility of a regular repayment of all the debts contracted is objective and that it is evaluated as such by the experts appointed by the court.

Who is it for? consumers and non-fallible subjects can use debt

Who is it for? consumers and non-fallible subjects can use debt

As already mentioned, consumers and non-fallible subjects can use debt. In this sense, those who are not subject to bankruptcy law in carrying out their work are to be understood. For this reason, the law includes two methods:

  • the consumer’s plan : this procedure is aimed at those who are private individuals and have contracted debts for the personal (non-working) sphere. With this procedure and if it is logically approved by the judge there is no need for creditors to give their consent. The judge’s decision makes the plan mandatory for all parties involved. The overdrawn consumer will have to be regular in following the repayment plan. It is also necessary for the latter to have a wealth or income capable of allowing repayment. So the debt cannot be used by those who have no demonstrable income unless they have someone to act as guarantor;
  • the debtor’s agreement : this procedure concerns subjects who are not consumers but at the same time are not subject to bankruptcy law. It must always be approved by the judge but creditors can object here. It is in fact necessary that at least 60% of those who have a credit agree in passing the plan as it was proposed.

To these two methods a third is added in which the debtor makes his assets available to the attorney appointed by the court to provide, through the alienation of a part or all of it, to repay the debts. Only the salaries or wages and pensions, the non-seizable credits and assets, the usufruct rights and the maintenance-related credits are left out of the assets.

How do you access the procedure?

How do you access the procedure?

You must go to the territorially competent court. The law (art. 15) provided for the creation of crisis settlement bodies (OCC), designed to guide anyone wishing to use the debt relief process. In practice, however, only in some cities were these “committees” born.

It is always advisable to ask the registry of your own court (that of the ‘voluntary jurisdiction’) and inquire if there are these bodies or if you have other references, possibly giving a mandate for the appointment of a specialized professional. This figure is essential to solve any small hitch in the preparation of the plan, and to arrive at a reimbursement program that appears to the judge actually feasible and sustainable.

When can a consumer not use the procedure?

When can a consumer not use the procedure?

As already mentioned, a reason for exclusion refers to the lack of the requirements related to one’s own assets or to the possession of a demonstrable income. To these causes are also added:

  • having used the debt in the previous 5 years ;
  • not having complied with the previous repayment plan;
  • have undergone any withdrawal from the procedure;
  • having omitted part of the documentation during the boot process.



Loans between Individuals

The results of the third quarter of 2018 confirm the growing trend of Lite Lending, which consolidates its position as leader in the online private loan market.

Since the beginning of its activity Lite Lending has disbursed 1,663 loans for a total amount of 14.52 million dollars .

Portfolio indices 30+ and 90+ are respectively 1, 04% and 0.47%.


Loans granted in the third quarter by Lite Lending


Also in this quarter the growing trend of loans between private individuals is confirmed. Fewer physical banks and more online solutions, especially if a fintech company provides the personal loan. Loans granted in 2018, up to 30 September, were 457 for a total amount of 5.19 million dollars . In the same period of 2017, 335 loans had been disbursed for a total amount of 3.55 million dollars (In 2017 a total of 469 loans had been disbursed for a total amount of 5.12 million dollars ).

The volume of loans between Italian private individuals disbursed

The third quarter of 2018 confirms the clear improvement in terms of disbursed, compared to the same period of 2017.

The month of March is confirmed to be the one with the most important growth. In fact, it recorded an increase of 145%, going from 269,256 dollars in loans disbursed in 2017 to 658,524 dollars in loans disbursed in March 2018. The growth trend continues also with the following months. In June 2018 the amount disbursed is 920,864 dollars : in June 2017 it had been 462,000 dollars .

Here are some summary graphs of the trend of loans between individuals disbursed through Lite Lending.


Main purposes of applying for loans through Lite Lending


The growth in green loan requests for the installation of photovoltaic systems continues.

While payments for home renovation, the purchase of furniture, debt consolidation, liquidity needs, the purchase of new and used cars and motorcycles are aligned with 2017. It should be noted that, according to Lite Lending data, both the total amount of loans and the number of loans disbursed have increased. In short, the number of people who rely on online loans between private individuals is growing as an alternative to traditional channels.


Distribution of loan applicants by gender and age groups among individuals

loan applicants

Compared to the first half of last year, the distribution by gender has remained practically unchanged. About 30% of women have applied for a private loan through the Lite Lending online platform, compared to 70% of men. As regards the age distribution of the Applicants of Lite Lending, 7% belong to the 18-30 bracket, 46% to the 31-50 bracket, while the remaining 46% fall into the 51-75 bracket.


Loan with the assignment of the fifth: all the useful info

When you need to access credit, and therefore ask for a loan from your bank, the first criterion that you must fulfill is that relating to the sustainability of the debt that you are going to contract, for which the bank asks for certain guarantees, whether they are income or assets. There is, however, also another type of possibility, given by the so-called transfer of the fifth, which makes it possible to obtain a loan to those who can present a paycheck or the pension slip.

The operation of the loan granted with the practice of transferring the fifth is not very complex and is a fairly widespread situation. In the following paragraphs you will find out everything you need to know if you intend to go to the bank to apply for a loan and return the amount with this type of solution.


Repay a loan with the assignment of the fifth

Repay loan with the assignment of the fifth

The same term says it: “transfer of the fifth”. In a nutshell, it is a question of repaying the loan obtained, allowing the financial institution to withdraw the share of a fifth directly from the salary or from the pension.

More generally, the term assignment of the fifth is used to indicate consumer loans, which are granted to private individuals without the need to declare the reason for the request. Here, therefore, that this type of solution is perfect for those who face unexpected expenses, needs to obtain liquidity in a short time and has a regular employment contract or is retired, since this practice has long been dedicated also to this type of clientele.

The maximum percentage that can be withheld from salary or pension is 20%.


How the assignment of the fifth works?

credit loans

The repayment of a loan with the assignment of the fifth is very simple. Instead of having to cover the monthly installments agreed upon when entering into a loan agreement with the bank, with payments made by bank transfer or postal bulletins – the most common forms – with this method the employer will retain the same the amount of the installment to be returned in the paycheck.

Since the retention of the fifth of the salary takes place directly in the pay packet, only employees with permanent contracts can ask for this type of solution. Furthermore, only certain types of companies have the option of accepting such an application by an employee: for example, they are large companies, or in any case those that have a certain number of workers or that can declare a share capital of a certain importance .


Who can apply for a loan with the assignment of the fifth: characteristics

apply for a loan

Let’s now pass to the essential characteristics to be able to access credit with the assignment of the fifth, here are what they are:

  • Be 18 years old
  • Not to have passed the age of 85 when the loan expires
  • Being employees with a regular permanent contract
  • Being retired

In the case of retirees, the fifth on the pension will be withheld directly by the social security institution that provides the pension, and the installments will therefore be paid by the institution to the banking institution.

Workers who apply for a loan with the formula of the transfer of the fifth, during the period of repayment of the loan can not ask for advances on the severance pay to the employer.

The reason is very simple: in case of dismissal or termination of the employment relationship, if the worker is still paying the loan installments, these can also be covered by the employer using TFR funds. It is an additional guarantee.


Should I apply for a loan with the transfer of the fifth?

apply for a loan

This solution is certainly suitable for those who need liquidity, and do not want to have the thought of repaying the installments. Or to those who have no other guarantees to propose to the financial institution.

Obviously, the costs of this operation must be considered, which presupposes the preliminary costs, bank commissions, the interest rate and the necessary insurance policy, sums that will affect the monthly installment of the deduction.


The list of things to evaluate before applying for a loan

Loans represent an interesting solution to cope with sudden or substantial expenditure, because they allow you to dilute over time the payment of a sum of money that would otherwise weigh on the family budget.

However, you must always be very careful to evaluate well, reading every note of the loan agreement to try to understand if you are running into too high rates or commitments from which it will be difficult to free yourself.

There are however some general rules to follow, let’s see them here.


Personal or finalized loan?

Personal loan?

There is a substantial difference between the two loan formulas.

The finalized loan is a loan generally obtained from a reseller of goods or services. The disbursement of the amount is made in favor of the operator who sells the good or service, while the customer will have to sign two different contracts: one for purchase with the retailer and one for financing with the financial company.

The cons of the finalized loan are related to the fact that the consumer has no possibility of choosing or customizing the conditions , but will have to submit to those established by the loan connected to the purchased good or service. Watch out for further costs, before making a purchase in installments it is good to inquire about offers.

The personal loan takes place at a bank or financial institution. The amount is paid directly to the applicant, who will be free to dispose of it at his discretion, without providing a specific reason. It will also be possible to establish special conditions by contracting them with the credit institution, without having to specify, among other things, the purpose of the request.


What is the purpose of the loan?

Although there is no obligation for the applicant to specify the purpose of the loan, it is always better to declare it, since requesting a generic liquidity loan, without any asset to guarantee the credit granted, involves higher interest rates.


Watch out for costs

credit loan

The loans are not all the same, because they do not follow the market indices and have a cost that depends very much on the intermediary, who will define the interest rate, the repayment conditions, methods and timing of disbursement, any compensation for early repayment : just know that in the event of early repayment of a loan, any penalties cannot exceed 1% of the amount financed if the residual life of the contract exceeds one year.


Taeg is more important than Tan

When asking for the conditions of the loan, it is necessary to dwell first of all on the APR (Annual Effective Global Interest Rate): it is this value that more than anything else allows you to evaluate its convenience. In fact, if the Tan is only the annual interest rate applied on the financed capital, the Taeg is the indicator as a percentage of the overall cost of the loan, because it includes the expenses incurred by the bank or financial intermediary for opening and managing financing.


Are you sure you have chosen the best loan?

What is the purpose of the loan?

The rule not to make mistakes is to compare the proposals on the market, because it is not easy to find the cheapest loan. For this reason it is worth getting help from a comparator, who in a few minutes is able to provide the best personal loan for each different applicant profile. Lite Lenders Credit does it in a professional, competent and completely free way.


Let’s take an example

For example, if we simulate the request for a liquidity loan of 10,000 dollars for a duration of 84 months on November 22, in the province of Milan the most convenient solution will be that offered by Younited. Personal Loan has a monthly payment of 147.47 dollars, with a Tan of 4.54% and a Taeg of 6.47%.

The initial expenses are for 593.22 dollars, the other expenses are zero. The amount will be paid by bank transfer to the bank account indicated by the applicant, at the latest within the fifteenth day following the communication of confirmation of the granting of the credit.


Loan with Government Agency agreement for civil servants

If you are a civil servant and need more liquidity, the solution to your problems could be an Social Welfare exGovernment Agency loan. If you meet the required requirements, you will be able to access loans that vary in amount and duration depending on your area of ​​use or the reasons for the request. In this article I will show you all the possibilities offered by Social Welfare, the requirements, the request methods and the delivery times.

What are loans at subsidized rates

What are loans at subsidized rates

These are loans at subsidized rates that can be disbursed to civil servants (also retired) either directly from the Social Welfare from the Credit Fund, or from banks and financial institutions affiliated with the guarantee of the Social Welfare Fund.

This Credit Fund is fed by the contribution rate paid by employees of the companies of the Poste Italiane SpA Group, by retired employees and former civil servants registered in the Unitary management of credit and social benefits, or by the Magistral Assistance Management.

They can be both small short-term personal loans, which can be used at the discretion of the applicant, and loans aimed at covering certified and regulated expenses in the health and well-being of the applicant’s family.

Types and requirements

Types and requirements

The different forms of loans offered by Social Welfare are described in the Loan Provision Regulations available on the Social Welfare website. Here are some of the loans available

Small loans

They can be annual, biennial, three-year or four-year and as the duration increases, the amount that can be requested also increases. It is possible to request a loan equal to an average net monthly salary or pension for the annual one, two for the biennial, three for the three-year, four for the four-year. The amount payable can be doubled if the applicant does not already have a transfer of the fifth in progress.

The TAN applied to the gross amount of these loans is 4.25%. At the time of disbursement, a withholding tax of 0.50% of the amount is expected to cover the administrative costs relating to the loan and a further withholding for the contribution from the risk fund, the percentage value of which varies according to the age of the applicant and the duration of the loan (from a minimum of 0.17% for the youngest to 15.39% for the oldest).

These loans will have an installment the amount of which can never exceed one fifth of the salary and the reimbursement will be made by withholding on the paycheck, as is the case for the transfer of the fifth. The possibility of renewing the loan once halfway through its duration is envisaged. It can be requested by public employees registered for the unitary management of credit and social benefits or by employees of the Italian Post Office and associated companies.

For teachers and school directors with permanent contracts in primary state and kindergarten, more than two years after retirement age, enrolled in the Magisterial Assistance Management, there is a reduced form of this type of small loans: not more than two average net monthly payments to be repaid in 24 months. The TAN applied will be 1.50% and interest will be withheld early on when it is disbursed, together with an additional 1% of the gross loan amount for administrative expenses and the guarantee fund. There are limitations in the proven reasons for the request (health, child marriage, birth or adoption of children, death of a family member, purchase of a car).

Anticipation of Old and New Mutuality Fund

Anticipation of Old and New Mutuality Fund

It can be requested by employees and pensioners registered in the Mutual Fund Management who have no disciplinary, revocation or resignation measures in progress. This is a loan that is disbursed by the Social Welfare in the form of an advance on the Fund and only for specified and certified health reasons (specialist visits, hospitalizations in private clinics, prostheses of various types, birth of a child, expenses for the funeral of a dependent family member etc.) in the case of members of the New Fund. No motivation is required for members of the Old Fund. The amount that can be requested is a maximum of 75% of the capital accrued by the members: for example, if the subscribed capital is $ 5,000, the maximum disbursable amount will be $ 3750 to be returned in 24/48 months, with an APR of 5 %.

These multi-year loans (direct or indirect depending on whether they are disbursed directly by the Social Welfare or by affiliated banks) are a strictly regulated type of financing both as regards the requirements to be able to access it, and for the reasons why it is possible to make the request.

First of all, you must be registered in the Unitary Management of credit and social benefits and have at least four years of working seniority and four years of contributions to the aforementioned fund. It is also necessary to have a permanent employment contract. The repayment takes place in 60 months (five-year loan) or 120 months (ten-year loan) and the TAN applied is 3.50% for direct loans (for indirect ones it depends on the institution that proposes it) to which during the disbursement phase there is also a 0.50% withholding tax for administrative expenses and one for the provision for risks, in the same manner and percentage envisaged for Small Loans.

It is possible to renew a loan of this type only after two years of amortization of a five-year loan and four years of amortization of a ten-year loan. This form of financing can be requested only for proven family needs of the member: moving, condominium work, buying a car or first home, marriage of children, illness, etc. For further details, refer to the Regulations.

Simulator of a small loan

Simulator of a small loan

To facilitate the evaluation of a small loan or a multi-year loan, a special simulator is available on the Social Welfare portal, to quantify the amount that can be requested, the duration and the amount of the monthly installments. To access it you need the PIN code issued by the Social Welfare.

How to apply make credit request

How to apply make credit request

In order to make a credit request, if you only have the online PIN, you need to convert it at an Social Welfare office into a device PIN. Once you have entered your reserved area through your login credentials, you will need to follow this click order: By Thematic Area, Credit and select the type of loan you wish to request. At this point it will be necessary to complete the form in its entirety and possibly attach the required documentation. In the same section of the Personal Area it will be possible to follow the process of the request and its outcome. Should the application be rejected, the applicant will receive a communication with the reasons for the refusal. Among the documents to be attached to the application we find:

  • certification of the state of need;
  • estimates and / or invoices of the expenses to be incurred;
  • medical certificate.

Social Welfare will carry out all the necessary checks during the request, disbursement and use of the financed amounts.
A little different is the method for requesting an Old and New Mutuality Fund advance.

As for the timing, these are not indicated on the official website, but looking on the net on some sector forums I noticed that they vary according to the type of loan requested and from region to region. For example, some users have seen the Small Loan being disbursed to their bank account in three / four weeks from submitting the application.