The liquidity loan – a non finalized loans.
The liquidity loan is a type of loan that is part of the non-finalized loans. It allows you to obtain a sum of money, generally of a reduced amount, not tied to the purchase of a certain asset.
Loan indicated by the consumer
The liquidity loan is indicated to the consumer who, faced with sudden or previous needs, needs an amount of money not tied to the purchase of a specific asset as is the case for finalized loans. In other words, this is a sum of money that can be used according to the needs of the consumer who requests it, without the actual use being declared to the institution that provides the loan.
The investigation of a liquidity loan procedure is quick. When the amount disbursed is a small amount, it is possible to receive the loan more quickly than other types of loans.
Since the amounts which are funded are generally reduced, the TAN of the loan is in line with that of the other personal loans, while the APR may be affected by the investigative costs and fees more prominently than other loan types.
This type of loan is not subject to the existence of collateral. It is sufficient to prove that you have a certain source of monthly income, which can derive from work or retirement.
The law states that a liquidity loan agreement must contain the following elements:
- the interest rate applied;
- any other prices and conditions applied, including higher charges in the event of late payment;
- the amount and methods of financing;
- the number, amounts and due dates of the individual installments;
- the annual percentage rate of charge (APR);
- the detail of the analytical conditions according to which the APR can be possibly modified;
- the amount and reason for the charges that are excluded from the calculation of the APR;
- any guarantees required;
- any insurance coverage required and not included in the APR calculation.
The law guarantees the consumer the possibility of carrying out the early repayment of the loan. If the consumer decides to choose this option, in addition to the reimbursement of the residual capital, he could pay a penalty that must not exceed, by law, 1% of the financed capital; the exact terms of the penalty are shown in the contractual conditions signed.
Criteria of the liquidity loan
Below we schematically illustrate some specific evaluation criteria of the liquidity loan.
- Risk policies : each Institute applies its own risk policy in evaluating requests, based on the statistical data it possesses (credit scoring). These data constitute the tool that allows the Institute to keep insolvencies below a certain level.
- Income level : the acceptance of requests is normally also subject to the appraisal of the applicant’s income level and the relationship between the latter and any repayment installment.
- Credit reliability : the creditworthiness of the applicant is of great importance. It is important to stress that this assessment has no “moral” meaning. The Institutes merely estimate the level of risk associated with each request, also on the basis of the indications transmitted by the Risk Centers. If the applicant’s credit history has some “flaws” (delays in repayments of previous loans, outstanding, etc.), the probability that the request will be accepted is obviously lower. In some of these cases, a valid alternative is constituted by the Transfer of the fifth: this solution, by offering the appropriate guarantees to the lender, allows to adopt more flexible evaluation criteria.
Disbursed by financial institutions
Liquidity loans are disbursed by financial institutions and banks. They do not require specific requirements, except for a certain income and a credit position of the loan applicant which confirms an adequate financial reliability of the same.
On Best Company we monitor day by day the conditions applied to liquidity loans from banks and financial institutions and we update daily a table with the best offers on the market. In this way, our customers only need one click to discover the best liquidity loan today.
Alternatively, you can fill out the form and make a quote to compare all the liquidity loans with each other and find the ones with the most advantageous conditions: it is simple and fast, but above all free and without obligation.