What are the peculiar characteristics of personal loans? In detail we will see all the aspects that characterize this type of financing. First of all, we reiterate that personal emergency loans are non-finalized loans at a fixed rate and repayable in constant installments, and when the contract is signed between the parties involved, the amortization plan is defined at the same time, i.e.
The total sum to be paid to the credit institution as compensation of the disbursed money plus the interest evaluated on this percentage, comprising ancillary expenditures and tax charges, over a pre-established period of time. Each installment therefore consists of a principal amount and an interest portion.
At any moment, the financed team can agree to discontinue the agreement early, reimbursing the bank or monetary company the percentage however owed, and in this case the sum to be repaid will be equal to the residual deficit implied in the amortization proposal or attained from the analysis of the existing value of coming installments. As we will see in more detail in the dedicated chapter,
In some specific cases it is envisaged that, in the event of early repayment of the personal loan, the credit institution may apply a penalty equal to a maximum of 1 percent of the initial amount financed.
It may happen that at the time the loan is granted, not only personal guarantees are required to protect the bank or financial company in the event of non-repayment, but also the signing of specific insurance policies. Visit This Link for more info.