Are you planning to apply for a personal loan? In summary, the main elements that characterize a personal loan agreement that is stipulated with a credit institution or financial company includes:
- Required amount
- Financed capital
- The installments
- Amortization schedule
- Cost indices
- Preliminary investigation and practice opening costs for emergency loans.
Personal loans: requested amount and financed capital
Regarding the first two items that characterize the loan agreement for a personal loan, there is obviously a difference between the amount requested by the subject, which corresponds to the total sum advanced through the appropriate application to a bank or finance company, and the financed capital. , or the sum requested on loan actually disbursed, including all preliminary investigation costs and any insurance policy. Indeed the lenders mercurynews.
They usually include in the requested amount some or all ancillary costs (such as secretarial expenses, stamps, inquiries, and so on), allowing the customer not to incur any type of upfront expense to be paid to the bank.
APR (Global Effective Annual Rate), is the index, expressed as an annual percentage, referring to the total cost of the loan, including all expenses and ancillary charges provided for in the loan agreement. The calculation of the rate therefore includes preliminary investigation costs, practice opening costs and installment collection costs, repayment of capital, payment of interest, and sometimes (not always) the cost of insurance. The sums that the customer is required to pay in the event of a breach of contract are also excluded from the calculation of the APR.