Can I get a same day loan online?
Are you looking for bad credit no credit loan but are afraid to lose yourself in the flood of offers that banks and financial institutions offer you?
The first thing we advise you to do is to look at the TAN, the nominal annual rate. This is the interest rate that banks charge on the loaned capital. As you can imagine, the higher the TAN, the higher the interest you will have to give back to the creditor; conversely, the lower the TAN, the more convenient the loan installment will be.
For the above reasons, we recommend starting with this element. Be careful, though: this is not the only element you will need to examine in order to find the best loan online.
If you want to know what the others are… read a little further!
Loans: get up to € 60,00
Often it happens to be faced with a loan with a very low TAN which, however, is not at all the cheapest and most convenient.
Well, this is certainly not a mystery! The TAN, in fact, does not include ancillary expenses, or those expenses that are linked to the loan, but do not constitute interest.
The ancillary costs are – in other words – those costs related to the services necessary for the management of your loan. As an example, we would like to remind you of the main ones below (but there may be others, be careful!):
- preliminary investigation fees
- installment fees for the installment
- installment management fees
- stamp duty on the contract
- substitute tax on the contract
- closing costs of the case
- cost for periodic communications
- insurance cost.
The list could (unfortunately!) Continue for a long time. For this reason, you must be very careful about the costs and ancillary costs that will be indicated in the contract, asking for detailed information on each of this item.
In short, avoid stopping at the previous paragraph alone. Evaluating which is the lowest TAN is certainly a good starting point to find the most convenient financing, but it is certainly not the only criterion that we advise you to implement and, certainly, not even the best.
Fortunately, to help you compare the best online loans, a helping hand is offered to you by the APR, the Global Effective Annual Rate.
Contrary to what happens with the TAN, which only takes into account the cost of the interests, the APR also includes – that is, in addition to the TAN – the accessory costs. Its value will therefore be the percentage of the cost of a loan on the disbursed capital, on an annual basis.
If, for example, you find a loan that has an APR of 9%, it means that that loan will cost you 9% of the disbursed capital, per year. Therefore, if you have requested a loan of 1,000 euros to be repaid in one year, that loan will cost you 90 euros, between interest and expenses.
Therefore, keep this concept in mind: the TAN is the indicator of the interest you are going to pay, the APR is an indicator of the interest and all the accessory costs that you will have to bear!
Insurance on a loan
Now that you have become a little more experienced in interest and incidental expenses, we can address the rumor that very often it is the “saltiest” one: insurance on a loan.
More and more often, in fact, banks and financial institutions will try to induce you to sign a loan contract that also includes insurance. And more and more often the costs of these insurances are able to represent the most onerous cost item.
But is insurance on a loan like a small loan always mandatory? And do you really need it?
To answer the questions just asked, we immediately tell you that insurance is almost never mandatory. The only cases in which the law requires the loan to be necessarily insured is linked to the calculation of the salary assignment. In all other cases the insurance is always optional, even if the bank may request it as a necessary condition to be able to provide the loan.
However, the fact that insurance is not mandatory does not mean that it is not useful in any case. Keep in mind that thanks to insurance coverage, the company will pay the installments in the event that you cannot do so due – for example – to an illness, an accident or the loss of work.
In short, insurance on a loan is almost never mandatory but it is very useful. It is up to you to assess whether it is worthwhile to bear its costs, which can often exceed 5% of the funding!
Some banks and financial institutions offer better economic conditions if the loan is accompanied by a guarantor. As you should well know if you have read our in-depth analysis, the guarantor (guarantor) is the one who guarantees the regular payment of the installments in the event that you can no longer cope with the commitment made.
The presence of a guarantor is, therefore, a very important safety lever for the bank, since the creditor thus ensures the repayment of the installments in the manner and within the time established in the loan contract. Try to evaluate if it is useful and convenient for you too!
Balance installment and duration
Banks and financial institutions do not want you to get into debt for more than 30-40% of the net salary amount. This means that if you receive a net salary of 1,500 euros, the total amount of installments you should pay each month should not exceed 500-600 euros.
Always try to take this simple calculation into account, as it will save you time, effort and misunderstanding. If you are concerned about the amount of the installments being too high for your creditor’s requirements, extend the repayment plan by 1-2 years.
Finally, keep in mind that the presence of a guarantor in the loan contract could raise the bank’s funding limits.