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What is the double monthly loan

The double monthly loan is a type of loan that allows the beneficiary to have available, for each year of the contract duration, a sum of money corresponding to an average double net monthly payment. Consequently, a real doubling of the financeable amount is obtained. If you apply for a 12 month double monthly loan, you get two months instead of one. If, on the other hand, you opt for the 24-month version, the loan provides for the payment of four months. This solution is accessible only if the applicant does not have any other kind of deduction in progress on his pension or salary.

At the same time, the amount disbursed is calculated according to what the institution’s balance sheet availabilities are based on the forecasts for each calendar year. In fact, it must be borne in mind that the double monthly loan is a form of access to credit reserved for loans granted by the Social Security Ex Government Agency, that is, the so-called small Government Agency loan. Consequently, it is reserved for public sector pensioners and civil servants who have registered with the Credit Fund (the Unitary Management of credit and social benefits).

Apply for a double monthly loan

The dual monthly loan allows users who do not have other ongoing credit reports to request small amounts of money. This is a solution that allows you to obtain a greater utility to face an unexpected expense, both as regards an unavoidable purchase and for a non-postponable deadline. To access this form of financing, taxpayers who are Government Agency employees must submit an application by filling in all its parts and signing the specific form provided by the reference body. The form must be subsequently delivered to the Government Agency. Instead, retirees can take advantage of the online mode. In both cases, users do not have to provide proof of expenditure to certify what the intended use of the money will be.

What are the interests and the methods of repayment

Due to the fact that it is a subsidized financing solution for civil servants and pensioners of the public administration, a rather convenient interest rate is applied. In fact it is a fixed rate loan that uses three rates equal to:

• 0.50% for administrative expenses;
• 4.25% for the TAN (Annual Nominal Interest Rate;
• a variable rate for the quantification of the Risk Fund Award. The rate is calculated using the applicant’s age and the loan term as variables.

Once all three rates are obtained it becomes possible to determine the APR, the Annual Global Effective Rate. The amount payable varies according to the applicant’s length of service, his age, his financial conditions, the size of the pension or his monthly salary. The timing of disbursement of the double monthly loan is a maximum of 60 days from the date of receipt of the application by Social Security. By accessing your own Reserved Area on the institution’s website, you can check the status of the case. Average times are around 15 days. The amortization plan is variable according to the request presented by the user and the installments are calculated in order to include the share of the capital and the interest share. However, it must be kept in mind that the reimbursement takes place through the transfer of the fifth: consequently the amount of the installment cannot exceed one fifth of the pension or monthly salary.

How do you define a bad loan.

When a consumer needs to take out a loan, he undertakes at the same time to repay the amount of money loaned to him by the credit institution or by the financial institution. In other words, it will have to refund the amount (plus a fixed or variable interest rate), by paying the installments in pre-established deadlines.
However, it can happen for various reasons (economic difficulty, personal and family problems, loss of job, etc.) that the consumer is unable to repay the loan according to the agreed methods and that the loan is classified by the bank as a ” loan. in suffering “. This definition therefore means a loan that is difficult (or almost impossible) to be collected by the credit institution due to the debtor’s insolvency.

But is a single unpaid installment enough for a loan to be defined as bad debts? Obviously not. In order for the credit institution to categorize a loan as bad, certain situations must have occurred previously, as we will try to illustrate in the next paragraph. The consequences of the debtor in the case of bad loans will also be briefly presented below.

How can you get to a bad loan.

In the event that a debtor is unable to pay one or more installments of the loan (or begins to pay late), he will be contacted by the bank or finance company to investigate the reasons for the non-payment. If it emerges that the consumer is in a momentary situation of economic unavailability, a term will be agreed (usually between 10 and 14 months) in which the debtor will have to regularize the situation (then pay the arrears installments and resume carrying out the subsequent payments on time). In this case we speak of “bank watchlist”, or as emerges from the term, a temporary situation of illiquidity but which could still be resolved in medium-short times.

If, however, the consumer is unable to settle payments on schedule, the lender can classify the loan as one of bad loans. In order to arrive at this stage, therefore, a proven situation of insolvency on the part of the consumer is necessary, who is probably unable to return the money lent to him. The main difference between substandard and non-performing is in fact found with regard to the persistence of the debtor’s default. While in the case of substandard the situation is serious but it could still be temporary and reversible, when the debtor’s condition of insolvency is passed on it is assessed as permanent by the credit institution.

Consequences for the debtor deriving from having a bad loan.

If a bank or a financial company catalogs a credit as bad debts, they must send the debtor written communication by registered mail, where it is required to return all the sums lent within a maximum time of 15 days. If this does not happen, the credit institution can proceed with an injunction, that is, it will attempt to recover the money through legal channels. In addition, the debtor’s situation will be reported to the Central Credit Register (a system that contains information on customer debt, which can be consulted by all intermediaries). The report effectively prevents the consumer from being able to ask for credit from other banks or financial institutions, as it is a “bad payer”.

Clearly, once the debt has been fully paid, the cancellation of the bad position from the Central Credit Register will be possible.
It is important to underline that if a debtor believes that the bank or the financial company has cataloged his loan among the bad loans too quickly (not having given him the opportunity to remedy what was only a situation of momentary illiquidity), he can appeal to the court and a judge will decide on that.

Loan refused by the bank: because the bank does not accept the application

A loan refused by the bank represents not only a disappointment, but also a problem for crediting access. The refusal of a loan in fact lengthens the time for submitting a new loan application. In fact, we remind you that requests for refused loans are charged to the applicant for a month. Period during which you will therefore not be able to obtain credit from another bank.

To properly address the problem, however, it is necessary to understand why the request was rejected. In fact, the reasons for a refusal are not always clear, although the reasons are usually related to the customer’s repayment capacity.

How to solve credit access problems

For greater clarity, however, we can distinguish the main causes of the refused financing in two categories: current economic problems and problems with past loans.

If a loan is refused due to the economic condition of the subject, it means that the bank does not consider the applicant’s income sufficient to guarantee the repayment of the periodic installment.

Instead, the question is different for those who have had problems with the repayment of a past loan. In this case, in fact, we are talking about applicants with a bad credit history, or of subjects who have not been able to regularly repay the amortization installments.

However, it is necessary to remember that even those who have had problems with a past loan will be able to easily access credit, provided that they can count on a fixed income. In fact, employees and retirees can obtain a loan thanks to the transfer of the fifth. Financing accessible also to those who have had difficulty with the repayment of a past loan.

When, on the other hand, the problem is job insecurity, other guarantees must be presented to obtain financing. The most accepted is undoubtedly represented by the signature of a guarantor. Person who undertakes to repay the amortization installments in case of non-payment by the beneficiary.

Applying for loans through capital lender is easy. An online loan application is sufficient to address both banks and private investors at a serious level. Of course, the borrower decides who gets the loan.

Our customer support team is fast and efficient to clear all your doubts regarding personal loan eligibility, procedures, offers, documentation and repayment options. We even contact with the respective lender on behalf of you.

Loan amortization plan: how to calculate

When analyzing a loan, the amortization plan is a fundamental factor since it indicates the repayment methods and the relative timing for the repayment installments. But how do you calculate the amortization schedule?

The amortization plan calculation allows you to evaluate the actual feasibility of a loan before applying for it. This is because the amortization schedule shows all the information related to the loan repayment.

The loan market currently has different types of amortization plans, each with different repayment methods. However in Italy the most used calculation method is the one called “French”. In this article, therefore, we will deepen the calculation of the amortization plan by referring to this type of repayment.

How the French amortization plan works

As already mentioned, the amortization plan defines both the timing and the methods for the payment of the loan repayment installments. Installments with an amount defined on the basis of the interest rate applied to the loan.

In this regard, we remind you that the amortization installments consist of two distinct portions: principal and interest. The first corresponds to the capital lent by the lending bank. The interest portion, on the other hand, concerns the sums due as interest, defined on the basis of the rate applied to the loan.

The composition of the installments may change according to the type of amortization plan applied. Specifically, French amortization is a two-step debt settlement program.

In the first phase, the periodic installment is mainly composed of the interest portion. This will decrease over the months, with a simultaneous increase in the share capital. In the final phase of the contract, on the other hand, it will be the principal amount that constitutes the majority of the repayment installment.

Amortization plan online calculation

However, what has just been said does not mean that the amortization installments have a variable amount. The beneficiary must always pay the same amount monthly. The only difference is represented by the percentage of interest and capital shares that make up the installment.

In short, therefore, by opting for a loan with French amortization, the creditor ensures that the customer repays the interest first and then the loaned capital.

We remind you that for the purpose of determining the installment amount, the interest rate is also a determining variable. Those who opt for a fixed rate loan are sure of a repayment with constant payments. Those who choose variable rate loans instead are subject to the effects of market changes.

How to do the amortization plan calculation? As we have seen, there are several factors to consider when calculating the loan amortization schedule. This operation is often difficult for those who are not experts in financing.

Those who wish to calculate the depreciation plan despite not having particular skills can resort to special online services. On the Net there are in fact several calculators that allow you to simulate the amortization of a loan simply by entering some essential data (rate, duration, amount, etc.).

When does an unpaid loan expire?

When he takes out a loan from a credit institution, the latter performs a series of checks in advance aimed at verifying the applicant’s ability to repay the amount of money requested (plus interest).

In practice, the credit institution takes care to check that the person to whom the loan is granted can pay all the installments foreseen for the repayment of the sum lent to it.
Despite the checks that can be carried out by the lender, it can sometimes happen that the debtor is no longer able to pay the installments and therefore to return the money.

What happens if a borrower no longer pays the installments of a loan?

In Italy there is only one case involving the arrest of an insolvent debtor against a lending institution, this is the so-called “fraudulent insolvency”.

This offense occurs when, despite being aware of the impossibility of returning the sum of money obtained as a form of financing, an entity also signs the contract.
This may be the case for an employee who knows that he will be fired shortly and does not communicate this important information to the credit institution.
For all other cases of insolvency, only foreclosure of the assets and salary is foreseen.

Credit prescription for loans between individuals

When it comes to loan prescription it is necessary to spend a few words also for loans between individuals. Italian law in fact allows loans to be granted not only by banks and financial companies, but also by private entities. Loans to be taken out in the form of a loan agreement.

But how does the prescription for loans between individuals work? In general, when it comes to prescription, the general rule of limitation applied to all contractual relationships applies to loans between private individuals. Loans between individuals are therefore considered prescribed after 10 years.

However, loans signed with professionals are an exception. Loans that are subject to a special regime, which provides for a prescription in 3 years. Finally, we remind you that if the lender renounces the return of the money, it will not be possible to retrace his steps.

In other words, if in a private loan the lender renounces, by signing a specific declaration, the refund will no longer be able to request the money back and the prescription in 10 years will cease.

When does an unpaid loan expire?

The terms for defining a debt as prescribed can vary from case to case, even if they are generally foreseen from 5 to 10 years.

In the case of non-payment of installments of mortgages, loans or loans, the forfeiture is ten-year. This means that for this category of debts the prescription is set after 10 years from the last unpaid installment.
The time frame is the same also for the loans disbursed by Social Security.
During these 10 years, the lender has plenty of time to recover the amount it deserves.
The prescription of a loan is governed by art. 2946 of the Civil Code and provides for (temporal) differences for some categories of credit, for example:

• 5 years for ostentatious credits for rents, interest, wages, severance indemnity and pension;
• 3 years for credits deriving from professional activities;
• 2 years for credits related to vehicle circulation;
• 1 year for credits linked to the payment of insurance premiums;
• 6 months for credits due to hotel activities.

Before the loan prescription date arrives, the borrower receives numerous reminders to pay from the lender. In these cases, a debt collection company is often involved. These are private agencies that operate out of court and take care of inviting the insolvent debtor to pay the amount due, by registered letter, by telephone and in person at home.
Furthermore, a person who does not honor the loan is registered in the register of Credit Information Systems, where all insolvent debtors are counted.

Practical example

If Luigi decides to apply for a loan from a credit institution and this is granted to him for five years, but after two years from the stipulation of the contract Luigi is fired and is no longer able to repay the sum of money received, what happens?

The 10-year period starts from the date of non-payment, during which the credit institution can exercise its right to collect the amount of money given on loan (plus interest).
During this time, the institution can assert its interests by attaching everything that appears to be owned by Luigi. At the end of the 10 years, the loan goes into prescription and Luigi’s assets can no longer be foreclosed.

However, this period of time can be interrupted by the notice of formal notice, with this stratagem, the credit institutes start the beginning of the 10 years, necessary for the prescription, from the date on which the communication was received from the debtor.

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:

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?

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

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?

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.