Finalized loan, what is it?
July 13, 2019
In Italy, we hear more and more about a specific loan and its convenience. But what is a finalized loan? Is it easy to get?
First of all, a finalized loan is a particular form of financing granted by a credit institution or company that is obtained directly at the points of sale of goods and / or services and is closely linked to the purchase that is made. Already from this brief introduction it is clear that the real advantage of a finalized loan is its relative ease of access to credit.
In practice, when you get a finalized loan you do not get a real loan because the amount paid will not arrive in your current account, but this amount will be diverted to the account of the retailer or seller who is selling the product or service and will represent the payment. On the other hand, the installments will be reimbursed to the finance company and not to the seller.
The loan finalized in detail
Let’s start with an example. If you want to buy a washing machine, the shopkeeper could propose payment by installments and in this case, after collecting all the necessary data (personal data and income situation), the financial company assesses the granting of the loan and, if so, allows the payment of the asset. in installments.
So there are two main features of a finalized loan:
- the disbursement of the financed amount is carried out directly in favor of the merchant who sells the good or service, and the amount is exactly that necessary to make the purchase;
- the client is obliged to specify the purpose of the loan (purchase of the good or service), of which the financing institution is necessarily informed (the good or service object of the purchase is specified in the contract).
The difference between a finalized loan and a normal loan is therefore clear. In the case of non-finalized loans, the financed amount is paid to the client who has no destination constraint and is therefore free to dispose of the requested loan amount with greater freedom of action.
Is a finalized loan worthwhile?
Undoubtedly, a finalized loan is worthwhile for its simplicity and speed. In fact, the finalized loans can be provided by the same point of sale thanks to agreements with the financial companies of the sector. Furthermore, in most cases, to be paid, they require minimal documentation (identity card, tax code and rarely payroll).
Obviously, the simplicity of providing a finalized loan is inversely proportional to the purchase price of the good or service.
Now we know how a finalized loan works.