Discounted personal loans: banks or Social Institute?

Discounted personal loans: how should they be?

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?

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?

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).

Special offers

Special offers

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)


Instant loan with special repayment

The instant loan is a very good solution when there is an urgent need for money. The advantages of the instant loan lie in the quick processing of the application and the resulting short-term availability of the loan amount for the applicant. Criticism at

Special repayments are a great advantage

Special repayments are a great advantage

However, even if there is an acute need for money, one should not forget that different providers offer different conditions and therefore carry out a thorough comparison of different providers. In addition to total costs and the amount of interest, terms and speeds during the payment are relevant criteria.

But the instant loan with special repayment should also be considered. Many providers have this option ready for their customers. An instant loan with a special repayment can help to repay the loan amount faster.

What is an instant loan with special repayment?

What is an instant loan with special repayment?

Fixed rates and a fixed term are generally agreed for the instant loan, which is paid out within a very short period of time. In addition to other factors, the amount of the installments and thus the term are important bases for calculating the costs that arise from the loan. Long terms with low rates incur higher costs than short terms and high credit rates.

However, it is not always possible to commit to high monthly installments in favor of the favorable loan prices. In this case, the instant loan with special repayment offers the possibility that the loan can be repaid with special payments in addition to the regular installments. This means that special payments such as Christmas bonus, asset-related benefits that are paid out or other amounts of money can be invested in the special repayment.

There are big differences in the instant loan with special repayment option

There are big differences in the instant loan with special repayment option

But even if the instant loan with special repayment is optionally available from the provider, you should not fall back on the first best offer. In the small print, it is often found that high fees are charged for the instant loan with special repayment. This then means that the lender can compensate for the shortened term of the loan, and thus the lost interest, by charging fees accordingly.

Other providers fix free special repayment options for the loan throughout the year. All other special repayments are then subject to charges again. It is therefore important to specify exactly which special repayment options are available free of charge and when or which provider charges are made for this in the case of an instant loan with special repayment.

How do I find the cheapest provider?

How do I find the cheapest provider?

The Internet has made it very easy to find a cheap instant loan provider that also accepts special repayments. Many portals on the Internet offer free and non-binding comparison options. With just a few details, you can objectively compare the individual providers, whose conditions are exactly examined under the same conditions and thus find the provider for the instant loan with special repayment who offers this service free of charge or at least very cheaply.

The consumer credit market is getting a boost

A Good Finance report on credit market activity in February 2014 shows that households are borrowing more and more.

They are moving more towards housing loans than towards cash, personal and revolving loans showing a continuous decline. The Good Finance notes that mortgage rates remain stable at a relatively low level, while consumer loan rates fall slightly.

Credit market recovers

Credit market recovers

Households borrow more

Banks and credit companies made more home loans to individuals than last year. In February 2014, 3.5% more loans were taken out compared to February 2013. In January, the increase was already + 3.2%.

The monthly flow represented 11.1 billion euros in February, only for housing loans, with a change in monthly outstandings to 3,913 billion euros.

Consumer loans stabilize

Good Finance figures show that the amount of new consumer loans taken out has remained stable for 6 months. They were 3.8 billion in September 2013 and fell slightly to finally find the same amount in January and February.

Borrowing rates are attractive

Borrowing rates are attractive

Still low mortgage rates

The figures from the Good Finance are interesting to compare with the monthly study carried out by the CSA observatory/housing loan. The Good Finance specifies that the average rate of long-term, fixed-rate housing loans was 3.22% in February 2014.

For its part, the CSA / housing loan observatory notes an average monthly rate of 3.04%.

The Good Finance report also highlights the average borrowing rate, for short-term housing loans and variable-rate housing loans. The average was 2.82% in February, a slight drop from January (2.83%).

In any event, it should be remembered that the nominal rate of a home loan varies according to the borrower’s profit. But above all, the cost of a loan is symbolized by its TEG, this is what the advisers of Good Credit will explain to you.

Consumer loan rates start to fall again

The Good Finance report indicates that the average rate of consumer loans was 5.95% in February 2014. This represents a decrease of 0.7 points compared to January 2014. Note that the lowest level of the last 6 months was reached in October, with 5.80%.

Bank overdraft rates rise

It seems that the average rate of overdrafts to individuals has started to rise again. After falling to 7.96% in October, they finish at 8.32% in February. The Good Finance specifies that the average overdraft rate includes ordinary accounts receivable, but also permanent loans.

Is it time to borrow?


Yes, because the conditions are met

Mortgage loan rates are low, it is possible to borrow around 3% nominal rate.

The price per square meter decreases, without however showing dizzying falls. We are therefore in a period where prices adjust according to demand, and where some sellers are ready to grant good conditions.

Buy old renovated

All professionals agree that the best real estate deals are currently in the old with renovations. Housing in which work is necessary to make it habitable can be negotiated with a large discount. The renovation works can be supported by an eco loan at zero rates, which makes the operation even more interesting.

Please note, however, that it is important that the cost of the work, added to the purchase price of the accommodation, does not lead to a total greater than the market value of the housing.

A bank will only lend you for a purchase of old with work if your record shows that you are going to make a good deal. The advisers of Good Credit help you understand how your real estate transaction should go so that it can be financed by the banks.

How much can you borrow?

The first step in acquiring real estate is to measure your purchasing capacity. This capacity depends on your debt ratio, which must not exceed 33% of your net taxable income.

More clearly, the sum of the monthly payments of your current credits (if you have them), added to the future monthly payment of this new mortgage, should not exceed 33% of your net taxable income.

To go faster, use our borrowing capacity calculator. Then, go to one of the Good Credit agencies to have a Borrower Passport delivered to you.

The Borrower Passport to save time

Real estate sellers, whether individual or professional, do not want to waste time with insolvent buyers. Taking a security deposit when signing the promise to sell is useless because resolutive clauses allow the buyer to withdraw if he does not obtain a mortgage.

Good Credit, therefore, issues you a borrower passport, on which your borrowing capacity is registered. By presenting this passport to the real estate seller, you assure him that you have already assessed your borrowing capacity with professionals.

Is there a contribution to the mortgage?

A contribution is generally necessary to have access to the mortgage. In most of the cases, a bank or a credit company will ask a borrower to pay the purchase costs themselves. The purchase costs are the notary fees, the deposit or mortgage fees, and the administrative fees.

This is a precaution taken by the lender, who wishes to commit only to the value of the property. Count 10% of purchase costs. This means that if your borrowing capacity is $ 200,000, you can turn to real estate at $ 180,000.

However, we invite you to contact your Good Credit advisor. With it, you will be able to study precisely the price range within the reach of your budget. Then, the advisor will make you benefit from his privileged contacts with major real estate players. You will thus have a quick service: determination of your borrowing capacity, search for the desired accommodation and obtaining the mortgage.