A finalized loan is a loan that is required for a specific purchase, whether it is a good or a service: a car, an electrical appliance, a holiday… This type of financing can be granted directly by the retailer who, thanks to the stipulation of an agreement with a credit institution, can offer its customers installment payments for the purchased goods.
The practice to obtain a loan is usually simple and fast, even for the limitations that this type of financing involves: the amount of the loan is directly linked to the cost of the asset you want to buy and the financing obtained is used to pay the loan. purchase of that specific product. In installments, the nominal interest rate ( TAN, usually fixed) must be applied, as well as any additional costs that contribute to the effective rate ( APR ).
Purchase contract and financing contract are two separate contracts: the first binds the consumer and seller while the second binds the consumer and the credit institution that granted the loan.
The granting of a loan is in any case subject to the creditworthiness assessment of the applicant: for this reason it is advisable, even for small purchases, to be aware of their economic situation and their level of indebtedness, in order to avoid unpleasant surprises.
The finalized loan agreement, as well as other consumer credit agreements, must contain some mandatory information:
• TAN and TAEG
• Amount paid and method of financing
• Amount, number and maturity of installments
• Conditions applied and any additional costs
• Guarantees and insurance required.