Although the recent aggravation of the international economic situation and geopolitical tensions have increased uncertainty and risks to financial stability, the sharp drop in interest rates globally ensures greater debt sustainability. It follows that the financial conditions of households remain solid. Indeed, over the year, the decrease in interest rates has resulted in an increase in the value of assets in portfolios and a reduction in debt costs. Based on this data, loan applications have increased thanks to low rates. The increase in financing for the purchase of goods and services, detected by some recent research, confirms that people wish to quickly put the pandemic issue behind them.
One of the most requested loans during this particular period is the personal loan.
The personal loan is a form of financing provided to individuals by a bank or an accredited financial institution. It falls under the category of loans not linked to the purchase of a specific good or service, and offers special guarantees when granted to consumers. With the personal loan, the client receives a sum of money, committing to repay it in several installments within a predetermined period. It is important to carefully assess the new “debt” within the framework of your family’s expense budget and your monthly income, taking into account both the total cost of the loan and the monthly payment to be committed: the monthly payment will indeed be added to other monthly payment commitments such as rent, utility bills, and installments of other loans.
What to do before applying for a personal loan?
Before signing a personal loan application, it is wise to evaluate different offers and wisely choose the most convenient one that meets your needs. Current consumer credit and banking transparency legislation requires the bank or financial institution to provide a set of information enabling the interested party to make an informed and convenient choice.
In the loan negotiation phase — that is, before signing the application — the bank or financial institution is required to deliver the “European Standard Information on Consumer Credit.” This document contains clear and comprehensive information on the main conditions applied, customized with the applicant’s data and useful for assessing the convenience of the loan. It is therefore always necessary to request that this information be provided before concluding the contract, as required by law.
How to choose an affordable loan?
Choosing the right loan is a difficult decision, but with Matchbanker, the choice can become simple. It is an online tool that assists users in selecting an online loan offer. Through this platform, we can easily compare numerous loan offers without leaving our personal computer. In addition to offering the loan comparison feature, Matchbanker supports the conclusion of online loan contracts by redirecting to the lenders’ websites. Matchbanker is really easy to use, and choosing the most convenient loan becomes simple and just a click away.
