Private loan: what it is and how it works
The economic situation in which we currently find ourselves is still strongly influenced, even if there are weak signs of recovery, from the global financial crisis that struck us in 2008. Because of this, more and more families are still forced to deal with economic hardships, which oblige them to tighten their belts to reach the end of the month.
The use of private credit, if previously it was practically only a prerogative of companies or entrepreneurs, who used it to finance their projects, has become an increasingly common practice among families.
The personal loan or personal loan is a type of loan that is paid by a bank or a financial company, from which you receive the required amount of money, which must be repaid in installments according to times and interest rates that vary depending of the institute referred to, the sum earned on credit and other peculiarities that a private credit entails.
The decision to have recourse to private credit must be evaluated carefully, because it is true that it helps in the most difficult moments, but it is necessary to bear in mind that the money that is given to us will have to be repaid, paying an interest rate.
One of the factors to be taken into consideration when requesting a private loan is the interest rate applied to it, which varies from institution to institution. The interest rate is expressed by the Tan (nominal annual rate) and the Taeg (annual percentage rate) which, unlike the Tan, includes additional costs.
For the less accustomed to these terminologies, what is important to know is that the rate of interest is the percentage calculated on the entire sum that is given to you and that you will have to pay in addition when you begin to return the money to the creditor.
There are some rules that must be taken into consideration if you want to request a private credit, first of all, the age limit. The applicant must be aged between 18 and 70 years. As a rule, in fact, the minimum age limit is the same for all institutions, the maximum may vary from agency to agency.
An advice we can give to all those who are thinking of requesting a private credit is not to stop in choosing an agency, evaluating it only on the basis of the interest rates it applies, but to look for agencies that have years of activities and proven experience Italian economy.