The personal loan is a loan not aimed at the purchase of a good or service. There is therefore the possibility to freely use the liquidity obtained. In light of this, the interest rates offered are higher than for other products.
The finalized loan is a form of financing granted by an institution which is obtained at the points of sale of goods and / or services and is strictly linked to the purchase made.
Personal Loan: what it is
The money obtained through the personal loan must be repaid in a specific number of fixed rate installments. It is possible to pay off the debt in advance before the end of the contract. However, it will be necessary to pay a small penalty, which by law cannot exceed 1% of the debt, to the bank.
It is possible to request a personal loan in the branch or online, with rapid disbursement times, between 24 and 48 hours.
The financial company that provides the money could request the stipulation of an insurance precisely because, since it is not finalized, there is no asset that can act as a guarantee if the debtor does not have to pay the installments.
Finalized Loan: a relationship between the dealer and the bank
The finalized loan is requested when you need to purchase a specific good or service. In fact, you do not get the money from the bank, but when you have to pay for the purchased product, instead of paying it immediately, you pay it in installments.
Loan money is paid to the company that sells the good or service. If you buy a kitchen, the seller may propose payment in installments. Once the necessary data have been collected (personal data and income situation) the bank will evaluate whether or not it is possible to grant the money.
Main characteristics of the finalized loan
- the disbursement of the amount is made in favor of the operator who sells the good or service;
- the customer is obliged to purchase an asset specifying the purpose of the financing, of which the lender is necessarily made aware.
The differences between Personal Loan and Finalized Loan
The personal loan is disbursed to the customer, who can use it as he sees fit, without having to submit any expense voucher to the bank that granted it. The sum is paid directly to the customer.
On the contrary, the finalized loan is disbursed for a specific purpose which, at the request stage, must be specified. The use of money is therefore restricted.
Financing is usually granted at a point of sale of goods and / or services, where the purchase is made. So instead of having to pay everything in cash when buying an asset, the applicant can pay it in installments.
Unlike the personal loan, the requested sum is not credited to the customer, but to the dealer or the affiliated shop. They are also characterized by being faster and easier loans.