How loan insurance works

What is loan insurance and how does it work ? Regarding this issue, there are some very precise distinctions to make and we will take you to discover them during this small but useful guide to insurance on the loan.

Let’s start by saying that it is a form of protection for loan applicants. Its function is to protect yourself in the event that you are no longer able to continue to pay the remaining installments of the loan. But many people wonder if and what risks they carry.

In which cases is loan insurance useful?

In which cases is loan insurance useful?

Unfortunately, a service like the loan insurance is not free, but is added to the total cost of the financed amount. All in all, however, it can really be a useful service and in some cases we must not really deprive ourselves of it.

The cost of insurance can vary greatly depending on the bank that offers it. So the service becomes more convenient simply by making comparisons between the various institutions and requesting it from the highest bidder.

More than the cost, the problem for an applicant is to get their own accounts to understand when it is convenient or not to add insurance on the loan. In fact, there is also another detail to take into account, sometimes insurance is optional, but at other times it is even mandatory.

The operation of insurance

The operation of insurance

When a policy is requested for its loan, very often the product that is offered is a Credit Protection Insurance, also called CPI.

The CPI must be paid together with the loan then it will weigh on the final cost of the same, then on the Taeg. The monthly installments will increase slightly based on the cost of the policy stipulated. The cost is not always installable, sometimes the bank can request the payment of the policy in advance and in full.

What is the function of the policy? Cover the cost of the remaining installments, if the borrower can no longer pay for some reason. Let’s see the possible causes in which this could happen:

  • Total permanent disability
  • Serious economic difficulties
  • Loss of work
  • Death

Should one of these eventualities occur, payment of the policy is triggered only upon presentation of the documents attesting to one of the unpleasant events just listed. If a doctor or other entity has to intervene to ascertain the situation, the costs are borne by the loan applicant.

Choose an advantageous insurance: how to do it?

Choose an advantageous insurance: how to do it?

There is a very simple way to understand which is the most advantageous loan: compare the Taeg or the Annual Percentage Rate. This rate is the expression of all the loan costs put together, so the lower the loan, the cheaper it is.

The Taeg is therefore always to be taken into consideration because it includes interests, ancillary charges and of course the cost of insurance. So for the same services required in the financing, just choose the one with the lowest Taeg to save.

It must then be said that recently according to the new terms of the law, the banks are forced to present two quotes for loan insurance, offered by companies that must in no way be related to the bank itself.

Finally, pay attention to policies with a revenge clause which would mean that the insurance company may later come to request the money upfront for the loan.

Loan insurance: mandatory or optional?

Loan insurance: mandatory or optional?

Generally, loan insurance is not mandatory. Only loans with one-fifth of the pension or salary are compulsory, so it is required in all cases where the installment is paid directly on the payroll.

This need arises for the bank in order to protect itself even from the bankruptcy of the company that is in charge of the employee requesting the loan. In other cases the loan insurance is optional, sometimes it happens that banks require it as an additional guarantee before proceeding with the loan.

If you would like to give an advice, we would say that those who wish to take out an insurance should do so for large loans, which therefore require a restitution that is destined to last over time. In general, if you have doubts about your real ability to support the loan in the long term, it is better to have a policy.

How to get a loan online without certification

If you are officially employed full-time, it is usually easy to get a car loan or a loan for a flat or a rest. But what if you work in black or have a different type of employment? Or what should you do if you are unemployed? This question concerns many of our clients. In this article, we will try to answer bothering questions, having experience in lending to hundreds of thousands of Fast Cash customers.

What do you have to do to get a loan to your account?

What do you have to do to get a loan to your account?

To become a Quick Cash borrower, you must have:

  • Identity card (age from 18);
  • Social Security;
  • Private bank account;
  • Active phone number and e-mail address.

If you are able to meet all these conditions – congratulations, you almost have a loan!

That’s all? Only thanks to this information will I be able to get a loan to my account without any certificates?

That

In addition to the data we receive, we also calculate the creditworthiness of each client. This is your credit history, data from the completed application, bank accounts, as well as information about your earnings.

How can I get a loan without a proof of income if I work in black or am unemployed?

How can I get a loan without a proof of income if I work in black or am unemployed?

In this case, we may consider other funds that affect your account. You must provide a bank statement or other official confirmation that you are actually receiving funds on your account. This may be a court order to pay maintenance or a rental agreement for the flat where you are listed as the owner. All these documents are manually checked by our verifiers.

If I do not get maintenance and rent a flat, what other income can help me get a quick loan online?

If I do not get maintenance and rent a flat, what other income can help me get a quick loan online?

Any earnings may be included. In addition to earnings, it can be:

  • Pension
  • Scholarship
  • Social benefits
  • Receivables due to copyrights
  • Dividends if you are a shareholder in a legal entity
  • Stable insurance payments
  • Percentage on bank deposits

Having other income also has a positive effect on the decision to grant a loan. Each application is processed separately and we check it manually, and any earnings can play a big role in obtaining an online loan. In any case, if you have a monthly income, you must document it!

 

Does it affect the ownership of a property or car to receive an online loan?

Does it affect the ownership of a property or car to receive an online loan?

Having a flat or a car has no effect on getting a loan if you do not get any income from it, for example, income from renting a property or working with a courier or driver with your own car, etc.

Does this mean that I will not be able to get a loan without a statement of income?

Does this mean that I will not be able to get a loan without a statement of income?

Without officially confirmed documents you still have a chance to get a loan. There are two important factors.

1. Credit history: if you often take out loans (not necessarily in Quick Cash) and repay them on time, we can automatically issue you a loan without checking the documents.

2. Scoring – automatic customer solvency checking. Thousands of factors count in the process of analysis: age, marital status, report, and financial stability. Getting a loan depends even on whether you have an account on social networks! What is the scoring in Quick Cash and how they check clients – read this article.

Get a quick loan without a refusal: the borrower’s advice

Get a quick loan without a refusal: the borrower

Are you with us for the first time? We’ll give you some tips on how to increase your chances of getting a quick online loan.

1. Increase your credit rating. There are several ways that we described in our last article.

2. Provide real information. It is not worth deliberately giving incorrect data in the form, it is easy to check whether you deliberately increased the amount of earnings or hid something else.

3. Complete the form carefully. Pay special attention to this moment. Literally an error in the apartment number may be the reason for refusing to obtain a loan via the Internet.

4. Always be on the phone. When registering and submitting the application, it is necessary to provide a valid phone number and e-mail address so that our employees can contact you if necessary. If you do not answer the call 2 or ignore the letter – it can be picked up as a resignation from the loan application.

5. Take a small amount for a short period. Thanks to this, you will increase your chances of faster acceptance of the online loan.

If you have any questions – ask them in a comment and we will answer them in the next article! Remember that for new customers, the first loan is free!

Loans for disabled pensioners

Are you a pensioner with a disability pension? Are you wondering if you can get a loan through this pension? Now let’s go into the whole discussion, giving you a lot of useful information. Meanwhile, good news: a loan on the disability pension is granted without problems, just offer the necessary reimbursement guarantees.

There is no reason why a bank should not grant a loan to someone who is in a state of disability. However, you must always ask the institution for advice to clarify the pathology you are suffering from and check the economic reimbursement possibilities.

The disability pension can be used as a guarantee to request the loan, we say that the granting of the loan therefore will depend substantially on the will of the bank and on the assessments of the institution.

How loans for disabled pensioners work

How loans for disabled pensioners work

In general, if you are disabled or not retired, it does not count. Banks always make the usual assessments when they have to decide whether to grant a loan or not.

The requirements necessary to obtain one generally concern:

  • An immaculate credit history
  • Do not exceed certain age limits for the applicant

Generally the age limit is around 75 maximum years for debt relief, while for the other aspect you need to be sure that you are not protested and that you have never been reported as a bad payer.

Finally, assess the amount of your disability pension. If you are affixed with the first two requirements we have mentioned, all you have to do is make sure that the sum you receive monthly is substantial enough to convince a bank to provide credit.

Unfortunately there are cases in which the invalidity condition could affect the request for the outgoing loan. Many lenders may be less inclined to grant credit if the chances of the applicant’s death being too high.

Types of loans granted to disabled pensioners

Types of loans granted to disabled pensioners

Disabled pensioners offer their pension as collateral for the loan. The bank will get the payment of the installments right on your pension that you receive monthly, so that the repayment is guaranteed.

What’s the problem? The condition for this to happen is that the withdrawal made by the bank does not affect the quality of life of the applicant. So the amount of the monthly installment must be calibrated to achieve this goal.

Cession of the fifth for disabled pensioners

Among the most common types of loans for disabled pensioners there is the assignment of the fifth. This is the kind of loan that is perhaps the easiest to obtain because the installment will hardly be such as to prevent the person who will have to support it, to live in a peaceful manner.

The reimbursement of the fifth assignment takes place by direct withdrawal from one’s disability pension. The installment with the assignment of the fifth can never exceed 20% of the total amount that is perceived as a pension.

As anticipated, however, even the assignment of the fifth is a formula that requires the assessment of the type of disability and the risk of death of the applicant.

As required by law, the loan is protected by an insurance policy, which is added as a cost in the installment. The insurance covers precisely the risk of death, but the bank is not willing to grant the credit if the risk is too high.

Apply for a loan

Apply for a loan

Let’s say you have all the requisites necessary for the loan request, how you need to proceed, which documents are necessary?

In the moment in which the official request is made, it is essential to present the documents attesting the monthly entry and personal data. The bank then, in order to understand what kind of disability we are talking about, requires the medical documents that attest to the type of problem and disability, so it will be able to calculate the risks related to the loan.

The physiological condition of the applicant is often evaluated also by a commission relating to insurance on loans for salary loans, which as mentioned are mandatory by law in this type of loan.

Cases in which the bank refuses the loan

Cases in which the bank refuses the loan

The granting of the loan on disability pensions is not always easy to access. The risk of death and of not being able to repay the sum for some medical reason are too high.

The bank runs the risk that it cannot be redeemed on disability pensions in the event of insolvency. Here is a list of cases where there is little or no chance of receiving funding in a handy list:

  • In case of too serious diseases
  • In the event of a high probability of death
  • Disability pension too low
  • High risk of loss of the invalidity pension by the applicant