The personal loan is a consumer credit product that provides for the disbursement of a pre-established amount repayable according to an amortization plan in constant installments.
It is also called “non-finalized financing”, as it is not necessarily aimed at the purchase of goods and / or services, but is intended to finance a private individual or a company that needs liquidity.
This type of financing is divided into two main categories: Salary Fiscal Assignment and Payment Delegation.
The absence of a purchased good or service, which can be used as a guarantee for a possible insolvency of the debtor, makes this product rather risky for the creditor. In some cases, the provider can ask for particular guarantees such as the signature of a co-obligor, a surety, the change of installments or the authorization to transfer part of their salary in the event of default.
The credit agreement for a personal loan is stipulated between the lender and the client; when the loan request is accepted, the money is granted directly to the contractor, without the intermediary of an agreement (dealer).
The obligation of the written form of the contract, under penalty of nullity, is to protect the consumer, as well as the obligation to indicate in the same the sum established, the methods of financing, the number, the amount and the maturity of installments, the interest rate and any other price and conditions envisaged for the disbursement of the loan, including any additional charges in the event of default.
The interest rate of the personal loan is mostly fixed and remains for the entire duration of the repayment of the money received,
on the basis of an amortization plan in fixed or constant installments.
The beneficiary has the right to extinguish the loan early compared to the agreed term, paying the remaining capital, interest, other charges accrued up to that time and, if provided for in the contract, an additional penalty (normally not exceeding 1% of the sum still to be paid).
In order to be defined as a loan and not a loan, the payable value must not exceed the limit established by law equal to 30,987.41 euros.