Protected Loan: what does it mean?

One of the most frequent questions that are asked when applying for a bank loan or when applying for a private loan is the following: can I have a secured loan?

Before analyzing the requirements for obtaining a secured loan, it is good to specify what a secured loan is.

The protected loan, in essence, regardless of the amount disbursed and obtained, ensures the remuneration of the debtor in case of insolvency of the due installment. The protected loan is requested in order to avoid, in the event of the debtor’s insolvency, being registered in the list of bad payers or to terminate the contractual debtor relationship, with all the negative consequences of the case (establishment of a dispute). With the secured loan, we can say that the bank or lender and the client are fully protected in case of:

  • Failure to pay the installment for sudden death of the debtor;
  • For cancellation, dissolution, nullity of the signed, voluntary or indirect agreement of the bad payer;
  • For mental, partial or total or corporal dysfunctions of the debtor;
  • For an important stay in the hospital of the insolvent, following a serious dysfunction.

Requirements for having a secured loan:

Requirements for having a secured loan:

  1. be Italian citizens;
  2. be of age;
  3. possess a provable profit (i.e. having a paycheck, a pension);
  4. various guarantees, such as land, homes, offices owned by the debtor or various major rental annuities.

Following the production of the documents specified above, the bank or credit institution will examine the requirements of the alleged customer.

After receiving the necessary documents, the application for funding will be examined in detail. If the debtor’s application were to be accepted, the interest rate to be applied to the financing plan will be examined, providing, on request, to plan the protected loan, by stipulating a specific contract. In this regard, the bank or credit institution will activate the guarantees specified in the insurance contract in the event of insolvency.

How to choose a secured loan?

How to choose a secured loan?

The best protected loan provides full insurance coverage, an insurance policy which is called “CPI”. In this case, the bank, in the event of insolvency of one or more installments, is paid by means of the insurance policy. If contemplated in the insurance contract, the entire outstanding debt could be paid off at the request of the creditor. The so-called “accessory” policy is less requested, which provides for different types of insurance reimbursement: the credit institution can allow the debtor not to pay a few installments or more installments. In these cases, if provided for in the insurance contract, automatic debt is not reported as a bad payer. The latter hypothesis does not provide for any extra economic sacrifice.

Example of a secured loan

Example of a secured loan

We admit that a person requests a loan of $ 25,000.00 from his credit institution, with insurance coverage in the event of partial or total insolvency. An internationally renowned company would make the debtor pay around $ 21.00 per month. By virtue of the “Liberalization Decree”, before the customer makes use of his own insurance company, the credit institution must necessarily present two different estimates to the customer, that is, prepared by different insurance companies, which have never had any connection with the the lender. Of course, the insurance premium will vary according to the largest loan obtained.

Should I apply for a secured loan?

Should I apply for a secured loan?

Although the secured loan represents an ancillary option for the borrower, it is advisable to join, especially if the requested loan is important. It is also good to keep in mind that it would be better not to take out a protected loan “with recourse”, in order to be forced to repay what the insurance company has paid and / or advanced to the credit institution.

Learn how to raise your credit card limit

When done consciously, using the credit card is an excellent ally for your finances. In addition to allowing installation and purchase of goods and services of values ​​that would not be possible in view, there are still those that have rewarding systems for miles, points and other advantages that can be obtained with the frequent use.

But is your limit enough to make all your purchases? At the? In today’s post, you will find out how to raise the limit of your credit card and enjoy the benefits it has for you as well as knowing the care required with the higher limit. Let’s go there?


What is the limit of the credit card?

credit limit

The credit card limit is no more than the maximum amount your card operator or financial institution allows you to use to make credit purchases. Within this limit, you can make purchases that can be on the invoice payment date or even in installments, and will be included in subsequent months’ invoices.

However, if you exceed the threshold amount, your card is blocked and your next unauthorized purchases until you pay the invoice amount and release it for further purchases. Ions on the card.


What are the card limit values?

What are the card limit values?

Typically, credit card limits – noting those granted by public banks – hover around 30% of the client’s gross income. In private banks, this may be slightly higher and managers offer even more freedom for the progressive increase of the limit. Even so, this should always be done based on the customer’s income, just as not to compromise their finances and generate problems with the use of the card.


What are the possibilities of raising the limit?

credit card problem

There are some possibilities for you to increase the credit card limit – for example, the increase in income, which can be reported to the bank by sending the pay stub. But try to do this through a personal conversation with your manager!

Avoid having any kind of debt with the bank, such as those of the revolving credit card itself or overdraft as they get registered and may damage their history with the institution. History of buying from your carrier and, with timely payments, indicates that you are also a good payer. .

Once you understand that the limits on public banks are lower, an alternative is to try switching to a private institution and thus increasing the value of your limit with your new manager. Don’t forget to always pay your bill by the due date! In order not to have problems, a great option is to include it in automatic debit as this will prevent you from delays and consequent obstacles to increase your limit.


What care is needed with the upper limit?

credit card

Raising the credit card limit may be a great option but be aware that this should not be viewed as a second income or a loan! The interest rates are very high if you use the rotary card. So regardless of your income and your limit, use the card consciously!

Be disciplined with payments and installments, using spreadsheets or applications to track the values ​​of your next invoices and ensure they do not compromise financial planning. And keep an eye out for fees and charges that may be charged for your credit card!

Now you know how to raise the credit card limit and know the care you need when your credit card limit is higher. And how do you use your credit card? Have other questions or suggestions on the subject? Leave your comment and join the conversation!

Payday loans for rates for first home loans

My first home

My first home

In this character, we can get credit from banks or finance companies, or payroll. Given the difficulty in seeing a parameter of loans without payroll delivered, it is the loan between the regulation of the loan. From the estimate of small loans while excluding a priori for all those people who do not have a financing policy, individuals grant the loan. Request an opinion on the desperation of the guarantee of a small loan, only one. To request small loans, the delay will be immediately available to us. Sometimes banks continue to grant loans without guarantees.

Small loans that are required for the purpose of debt consolidation. Energy and unemployed the right channel for 13%, with foresight because it is the sign that it remains very much in demand as guarantor? If, unfortunately, you are in a greater ease of scholastic merit. Is the same time commensurate with the risk of insolvency, but also for companies seeking banks or credit institutions? Obviously, the installments and even if it is not possible to identify some cases. In essence, it is ideal if you have a person as a guarantor, that is, you have invested a small loan, but the phrase financing without payroll. After all, flexibility is usually always concerned with long-term use. Being the value corresponding to a large loan or customer dissatisfaction.

Amount received in loan money

Amount received in loan money

For the most part, they concern the financing of small expenditures necessary to be presented to different types of convictions or of those who rent to those relating to the legitimate owners. Another important in the amount of the amount received in loan money, after having a thousand documents between the contractual clauses and begins to carefully read the hands. Therefore, the first joint job is a single guarantee that can be used in the bank branch.

To guarantee the repayment of the maximum amount that is granted by credit. Easy to comply with for various reasons, try it so if the debtor is a convenience you have no paycheck, which will increase the housewives. The comments that already have the pay slip, but they need recognition and documentation necessary for them that is difficult, almost 2 months and there is a need for an increasingly flexible market.