Discounted personal loans: how should they be?
Subsidized personal loans are a sub-category of personal loans, as they have the following characteristics:
- they are personal loans, therefore they are granted to the ‘person’ which makes them a little more flexible for the type of use;
- they are facilitated, but the concession is not intended only as non-repayable loans (so the sums obtained in whole or in part must not be returned).
Being with a subsidized rate indicates that the rate obtained is favorable, or lower than the market average. An example can be represented by the Social Institute loans, or those affiliated with banks and financial institutions that guarantee subsidized rates for Social Institute pensioners.
However, the facilitations must also include credit access facilities as happens for example with microcredit and the various guarantee funds, intended above all for small entrepreneurs. In reality, at least as far as today is concerned, for entrepreneurs a personal loan with a subsidized rate is difficult to find in the strict sense of the terms.
The allocation of funds to which they can draw are in fact almost always granted by virtue of calls. These also specify the expenses that can be financed (therefore the characteristic of ‘personal loans at a subsidized rate’ being finalized is lost).
Discounted personal loans: how to apply for them?
The subsidized rate personal loans can be requested only by those who have the characteristics, or the minimum requirements, to be able to access them.
If you have the necessary minimum requirements, then you need to turn to those banks and financial institutions that have one or more subsidized personal loans in their offer. Among the easiest examples to find, which are almost always proposed at least by the big banks, we can mention:
- Social Institute loan agreement for pensioners (in the form of assignment of the fifth of the pension). These are loans with subsidized rates and which often involve the elimination of accessory costs;
- personal loans for young people : here, in addition to slightly lower rates, we can find facilities linked to linked current accounts (often at zero fees) and some facilities for accessing credit;
- loan of honor : it is a classic personal loan, as it is granted to the ‘person’ but which is mainly granted to students. To access it, you need to be part of universities that have agreements in progress or contact banks that provide it. This is almost always linked to an excellent school curriculum (we can find UniCredit and BNL among banks).
Discounted personal loans: do they always agree?
Sometimes personal loans are offered with preferential conditions, and not with a subsidized rate, where more flexible financing to manage is offered. For example, there is the possibility to skip the installment, to change the amounts to be repaid by varying the duration of the amortization plan, etc.
In these cases, it must be ensured that these concessions do not entail costs, that they are easy to use, and that, on the whole, the loan does not end up costing more also in terms of ancillary costs.
In fact, it is not enough to look at the Tan but one must concentrate above all on the Taeg which also includes secondary expenses (not strictly linked to rates).
The subsidized personal loans can also be linked to special offers made by credit institutions. In this case it is essential to keep up to date in order to seize the opportunities that the financing market frequently offers today.
Logically there are banks or finance companies that report themselves as more dynamic in this regard and for this reason they must be monitored more constantly. One example is Across Lender which often offers reward rates that come very close to the 0 rate with a Taeg o, o1 (Promo valid until 27 November 2019)