Furniture loan – Better finalized or personal?

The purchase of a new home or the desire to change the appearance of a property that is already owned can lead to the search for a loan for furniture. But are these viable solutions and above all can they guarantee the best solution for their objectives?

Whether it is a purchase for investment or to improve the livability of the rooms or for rent, let’s see what are the aspects to evaluate when you are looking for a loan to change furniture and what are the alternatives that you actually have.

 

Finalized loan

Large stores often have agreements with banks or financial companies, to facilitate the purchase of furnishings, establishing minimum and maximum limits that can be financed differently: there are shops that already with a few hundred euros allow the start of a practice of loan application, while for other shops you have to choose to buy furnishings for much higher amounts. From this point of view there are no general rules, but you have to inquire at the shop, and always request a quote on the cost that would be incurred by paying an installment including of interest. This does not mean that you can not find proposals for loans aimed at zero rate, but these are occasions that are few in number and very often linked to promotional periods.

The advantage of a finalized loan lies in the fact that it is the shop staff who instructs the practice and the outcome is known in a short time, while on the convenience it is necessary to make personal evaluations to be assessed case by case. Let’s take as an example two large chains of furniture stores such as Monde Finance and Akasa.

 

Personal loan

Personal loan

There is no particular impediment to purchasing furniture by applying for a personal loan. This generally enjoys greater bureaucratic simplification and is also less binding on the amounts to be requested (you can make the request for a greater amount than when you expect or will have to spend on the furniture). However, personal loans tend to be more expensive than those aimed (for higher tan and Taeg rates and almost no possibility of finding zero-rate solutions) even if we refer to online ones. However, we need to distinguish between:

  • type of applicant (depending on whether or not it has agreements or concessional conditions such as long-term loans for civil servants registered in the Ex Inpdap Management);
  • type of work activity (employees can also use the assignment of the fifth).

These differences can not only increase the chances of obtaining a loan at a much lower rate than that applied on similar products on the market by banks and financial companies, but they can also increase the range of alternatives of choice. An aspect that becomes very important especially if you want to get a loan for the furniture, when you have already requested a mortgage for the purchase of the house and therefore you have become less attractive for the bank or the financial company that must evaluate the ability to repayment on a normal personal loan.

 

What to watch out for?

furniture loan

Unless you have the requirements and the intention to apply for a multi-year ex Inpdap loan for furniture, you must always start from the comparison of various quotes so as to understand what is the weight of the rate (Tan) and the total costs and costs (Taeg), and carefully evaluate the presence of early repayment penalties and ancillary costs (such as the collection of installments). To understand which is the best loan based on your needs, you must be careful, however, to compare similar products, therefore:

  • loan quotes finalized with other finalized, and personal ones with personal ones;
  • use comparisons of equal duration (for example rate applied on a repayment of 60 installments with one of 60 installments) and if it is not possible to compare the amount of interest that will be repaid with different durations.