What data should you quote for a loan?
The request for a quote (personal or otherwise), even in the case of a loan, is a form of protection for both parties. On the one hand the applicant verifies exactly the conditions that will be applied to him, knowing the terms of validity, and being able to make a more weighted choice especially on the sustainability of the installment payments.
The proposer loan will guarantee the transparency and clarity that the legal obligations impose on him, protecting himself from legal actions or disputes. However, the procedures required by law must be followed. Among these “obligations” there is first of all respect for the use of the obligatory forms and channels in order to then subsequently be able to access the credit under the conditions provided for and indicated in a clear and transparent manner “in the budget itself (a fundamental aspect for example for the subsidized loans resulting from agreements ).
The form and structure of the estimates
The quotations made ‘by voice’ obviously have no validity whatsoever. If it is correct to assume that a valid quote should be in writing, it is wrong to assume that any quote placed on paper is valid. In order for it to have a series of fundamental data, it must be dated and signed or endorsed.
To avoid difficulties on the part of consumers in identifying valid estimates, with the Secci module a standardized model has been introduced that must be used both in the case of compilation done personally by a consultant or intermediary (valid in this case both manual compilation and with the use of software and subsequent printing) that in the case of online request. In the latter case, the quote will be valid if it is simply saved and kept on the PC memory, which is downloaded and printed provided it is kept.
Fundamental characteristics of the loan loan
Since the entry into force of the European consumer credit directive (June 2011 with the introduction of the “secci” module), there are also some innovations in the matter of estimates for loans and financing.
In particular, the estimate of a loan must contain the necessary and obligatory indications, in such a way as to make the comparison between different proposals easier, in order to be able to identify the cheapest or most suitable to your profile.
- Tan and Taeg for each duration or amount requested;
- total capital returned on maturity (loaned capital plus interest);
- related ancillary costs (reduced collection costs, miscellaneous taxes, etc.);
- penalty of extinction, rate and duration of the pre-amortization if provided;
- duration of validity of the estimate (especially in the case of promotional rates);
- installment amount resulting from the combination of requested amount and repayment plan duration.
These conditions must be respected both in the case of online loan quotes and those made in the traditional way.
Sustainability of the installments
As can be seen, no reference is made to the aspect of ” sustainability “. This is because it is a strictly personal evaluation that every person should carry out, and for which those who simply represent the supply side cannot take charge.
The calculation of the sustainability of the loans is not complicated, as it is obtained simply by comparing the weight of the “installment” that will have to be paid in the event that the loan should be granted, with the outlay that it already supports in a recurring way to face the other items of monthly expenditure (food and bills in the first place, but it would also be good to include what is intended for leisure and entertainment).
If you encounter difficulties in making the calculation you can use free tools. Some financial and online banks present the possibility of use through a link or a reference that allows their connection. If these references are not found then just go to the Monitorata site.
Reliability of the loan quote
Given the characteristics that the estimate must have, the data resulting from the compilation of the tool spaces of the “calculate rate” type (such as for example on Bnl, Agos, Findomestic and for the revolving card also Compass ) are not intended as true estimates but more like a very rough feasibility analysis, and not at all reliable (the loan estimate with Poste Italiane does not include the use of online tools).
Furthermore, in order for a quote to be reliable, it is necessary to have entered exactly the data shown on the pay slip (for online quotes) or to have presented a pay slip to the operator who has dealt with its definition.
Moreover, the budget is not significant for the approval of the loan, so it is preferable to always proceed with the request of two procedures, namely: the compilation of the budget and the realization of a feasibility simulation (which is never definitive, but it can give an important indication on the possibility of approval at a specific bank or financial institution rather than another). To know exactly if you are calculating a quote or you are doing a simple simulation, you will only have to pay attention to the wording on the program or screen you are using. When an estimate is being calculated there must be a specific definition of “preventive calculation” or similar.
Maximum attention to the loan loan request procedure
In some cases, especially in order to be able to access certain conditions, you must make a request for quote by filling in the appropriate forms (normally a photocopy of your pay slip must also be attached). So you have to find out about these compulsory forms, or you risk accessing credit but losing the advantages associated with lighter promotions or discounted rates.
How long are the estimates valid?
Online insurance quotes guarantee the maintenance of the conditions for around 60 days. For the loans it is not possible to maintain the same conditions, due to the fact that the rates are constantly changing. Therefore the bank or the financial company will propose a rate for a much more limited period of time, and that in any case must be specified in the budget itself. For the validity to be maintained for this period of time it is necessary that the estimate:
- has been dated and signed by the operator in the case of request via traditional channels;
- be saved after its calculation by the applicant if it is a request for an online loan quote.
There is one final consideration to make about the estimates. Once we understand that these are always free, they can have a limited duration and in any case must have a content and a form “well defined type, we must also understand its usefulness. When you are looking for a loan through comparators or even directly from banks or financial proposers, you must take advantage of the fact that there is no limit to the number of estimates that can be requested, and that a quote is never binding. So you should not be overcome by ‘shyness’ or ‘laziness’ and make the most of this tool, which is the first step in finding the best financing solution for yourself.