Do you need liquidity to buy an asset, but do you not have all the necessary capital available or do you not want to affect your savings? The answer is personal payday loan. A solution that more and more people and families are choosing. The recent surveys of the CRIF Barometer show that the desire to invest and the determination to complete their projects by requiring an extra amount has returned to make room for Italians.
If we look at March 2019, for example, we notice an 8.9% increase in requests for personal payday loans compared to the same month of 2018 and the average amount requested is equivalent to 13,052 dollars. In 2018, the average age of applicants was 42 years and one third of funding applications were from under 35 (29.2%).
The reason for applying for a loan varies according to age, but what encourages every question is the growth of the opportunities made available by the consumer loan. For anyone who needs help to make their dreams or needs come true, here is a list of useful things to know before applying for a personal payday loan.
1) What is a personal payday loan?
It is the disbursement of a quantity of money not tied to a specific purchase (as a mortgage or a lease can be). The personal payday loan, in fact, is a form of non-finalized loan granted by banks or financial companies to individuals, to be repaid in convenient installments, including related interest, by charging SDDs or postal slips, over a specified period of time.
2) What are the requirements to request it?
Each institution adopts its own lending strategy and rules but, in general, personal payday loans can be requested by public, state and private employees, pensioners and self-employed workers, aged between 18 and 75 years (end of funding date).
3) What documents do I have to present to get it?
Nothing could be simpler. To obtain the financing, simply present to the institution: a valid identity card; tax code or health card; last paycheck, single model or single certification or last pension slip.
4) When is the loan refused?
No unequivocal answer can be given to this question but, in general, the loan is denied if there is doubt about the debtor’s actual ability to repay the requested sum. Other elements that can lead to the refusal of the request are: the presence of a large number of outstanding loans; registration in the public register of protesters or the presence of unpaid expired installments and other negativities in private databases (SIC); the excessive impact of outstanding installments on income received.
5) Which items should be paid particular attention to in the contract?
First of all, attention must be paid to the items relating to management costs and interest. Also watch out for the exact amount paid, the amount of each installment, the payment date, and the maturity and termination dates of the loan. Without forgetting to be well informed about the guarantees required.
6) About interests: what are TAN and APR?
These are two calculation parameters that allow you to develop the value of the installments to be repaid, representing the cost indicators of the loan. When a loan is requested, TAN (Nominal Annual Rate) and APR (Global Effective Annual Interest Rate) allow to evaluate its convenience: the first represents the annual interest rate applied on the financed capital; the second is the indicator as a percentage of the overall cost of the loan (includes expenses applied for the purpose of opening and managing the loan).
7) Are there any forms of loan protection?
When signing the personal payday loan contract, it is possible to associate optional insurance policy to protect the credit. This coverage is able to protect the applicant, on the basis of his working status and on the basis of the specific policy conditions, in the event of events that compromise his ability to return the amount due.
8) Once the loan has been obtained, what happens if I skip the payment of one or more installments?
In the event of non-payment, incorrect or delayed payment, the financial institution is obliged to report bad payers in the databases consulted by the same during the evaluation of the customer’s creditworthiness and contributed during the amortization of the loan request. Furthermore, the provider can request reimbursement of expenses incurred for any postal or telephone reminders, any home interventions and / or legal expenses incurred by the same.