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Guide to small loans and alternative guarantees

Guide to small loans and alternative guarantees

Guide to small loans and alternative guarantees

The need for a loan does not always put high sums into play and if we talk about small loans, there is a greater chance that the request will be successful even if the guarantees offered by the client have some weak points, perhaps related to the solidity of the employment contract and therefore of income. Here is a brief guide to small loans and alternative fixed income guarantees.

A small loan can be disbursed in different formulas, a loan aimed at a specific purchase such as computer and technology loans, a small personal loan, to be requested online through 100% digital solutions, with electronic signature, or again with a microcredit or credit line linked to a bank account or a revolving card.

The finalized loans can be exploited by choosing to purchase in shops explicitly affiliated with financial institutions and which guarantee, at generally convenient rates, an installment payment. The offers of small loans online can instead be compared through estimates in digital form filled in independently, by entering the necessary amount, the time required for repayment, personal data relating to income guarantees and the calculation of present and past creditworthiness. Revolving solutions and bank credit lines can also be evaluated online, and the latter in most cases are discussed in the branch after making an appointment. An example of this type is the Cleopor, a financial product that guarantees liquidity up to 1,500 euros in the form of a rechargeable credit line. By reconstituting the available credit in fixed installments of 50 or 100 euros per month, this can be reused for other purchases. The TAN of this operation is 16%, maximum APR, including ancillary expenses, 23.30%. As in the case of revolving cards, this is a formula of continuous financing over time but with higher costs than the average of personal loans.

When it comes to small loans and revolving solutions, banks are easier to show flexibility than the guarantees that the customer can offer. The alternative guarantees to fixed income and fixed-term that can be put in place are the time contracts but of sufficient duration to cover the repayment plan (12-24 months), an external guarantor who undertakes to meet the debt in case of unforeseen events and finally, in the event of unemployment, a different source of income / income, for example a maintenance check or a rent regularly paid by a tenant of a property owned.

Loan estimate of 10000 euros

Loan estimate of 10000 euros

 

Financial: Dimple Loan
Product: Personal Loan
TAN Fixed: 4.25%
APR: 4.44%
Loan duration: 60 months
Amount Financed: € 10,000
Total due: € 11.117

Monthly installment € 185, 28 Feasibility check 

Financial: Ultranix
Product: Personal Loan
TAN Fixed: 5.16%
APR: 6.70%
Loan duration: 60 months
Amount Financed: € 10.146
Total due: € 11.735

Monthly installment € 193, 19 Feasibility check 

Financial: Astrofinance
Product: “Your Projects” Credit
TAN Fixed: 6.01%
APR: 6.18%
Loan duration: 60 months
Amount Financed: € 10,000
Total due: € 11.602