Bank Loan: best rate, interest calculation, installment simulation and how to renegotiate

We discover the bank loan and all its features both as regards the methods of request and the treatment offered. We will see what is the best rate among those offered by the main companies. Finally, the loan simulation with the calculation of installments and interest and how to renegotiate the bank loan.

What is a bank loan?

What is a bank loan?

Bank lending is a form of financing offered by banks to individuals or companies. It is the ideal solution for all those who are looking for a sum of money more or less high to carry out any project. The bank loan can in fact be requested for example by a citizen who is interested in buying a new or used car. At the same time, bank loans exist for companies that are interested in investing in their own project. So this form of financing is undoubtedly the most sought after by all those who need money. The characteristics of the loan vary according to the regulation defined by the various lenders. Usually the amount that can be requested reaches up to 30,000 euros, but in some cases it can even be higher than this threshold and can even reach 60,000 euros.

Mainly there are two types of bank loans that can be found on the funding market, even if the products offered by the banks are very numerous. The two categories we are talking about are personal loans and targeted loans. What is the difference between these financing options? The targeted loans are loans provided precisely to implement a project. In particular, this is the option offered to us by various retailers when buying a product with a particularly high cost. Often the solution offered to us is that of payment in installments. By choosing this solution, what we will receive will be a finalized loan. The particularity of this form of loan is that the amount of money requested will not be directly paid out, but will be paid into the retailer’s account. So once you have purchased the desired good or service, which can be a television, furniture for the home, appliances, or a trip or the organization of a ceremony, our relationship with the dealer ends. Then we will have to worry about paying the repayment installments provided by the contract to the bank.

In the case of personal loans, the speech is slightly different. The difference lies in the fact that we will go directly to the credit institution we prefer to request the money we need. The sum of money requested, if successful, will then be paid directly to the current account held by us. The reason why we are in the situation of requesting a loan will therefore be totally irrelevant. Once the money has been received, we will be able to face the expenditure we want, or even just have available liquidity. There are more and more banks and financial companies that launch new financial products that are always very interesting, in order to convince a clientele as wide as possible. In order to choose the ideal bank loan, it is therefore very important to pay attention to all the characteristics of the loan, both as regards the required requisites and the amount of money that can be requested for repayment terms, duration and interest rates. all the additional services offered by the various banks.

Bank loan at the best rate: how to find it with simulation installments and interest calculation

If you are looking for a bank loan, as we have already told you, the solutions that are right for you are certainly not lacking. The real problem will therefore be to identify the most convenient financing, and therefore the one that provides for the best interest rate. The factor that most of all determines the cost of a bank loan is indeed the interest rate, or rather, the interest rates. In fact, there are two rates to consider: the Nominal Annual Rate ( Tan ) and the Annual Effective Annual Rate ( Taeg ). The difference between the two, which are obviously expressed as a percentage, lies in the fact that the Taeg takes into account all the expenses related to the financing, and therefore for example the start and management of the file and the costs for the periodic communications.

To find the cheapest bank loan in absolute terms, the best thing to do is to request a quote. In this way it will be possible to have an estimate of the repayment installment that we will have to face and of the total cost of the loan. All the best banks and financial companies, such as Ultranix, Astrofinance, Cleopar, Yobank, InDirect and others, offer their customers the opportunity to carry out an online simulation of the loan in a few simple clicks. This service is also available without registration, so our advice to choose the bank loan with the best rate is to simulate the financing on the websites of all major lenders. Requesting an estimate online is very simple and to do it just a few minutes. All we have to do is enter the amount we need in the space provided. On the basis of the simulator we use, we can request the project we intend to carry out and the duration of the loan, in addition to our profession and whether or not we wish to activate the insurance policy for the loan.

By launching the simulator we will then present the characteristics of the bank loan offered to us by the company. In particular, as we have already said, the parameters will be the monthly repayment installment and the applied Tan and Taeg interest rates. These in turn will obviously depend on the duration we will choose. If your need is to have light installments in order to complete the repayment in all serenity, then the bank loan that suits you is the one with a rather long duration. If you want to save on the cost of your financing, what you need to do is to choose a duration that is as low as possible, obviously among the options that provide for a repayment installment within your reach. If you are looking for a bank loan at the best rate, it is good to consider the duration of the loan. As the latter increases, usually the applied interest rate decreases. However, it should be remembered that this is an annual rate, which therefore will entail higher overall interests over a longer period of time than a shorter duration. For this reason, the comparison of interest rates applied by different credit institutions can only be done at the same duration, otherwise it makes no sense!

Let’s now look at some simulation examples to learn about the characteristics of bank loans of the main banks. In particular we will consider a request for financing of 10,000 euros. If you request an estimate online on the Astrofinance website, the solution proposed is the one that provides for a repayment in 96 months, with installments of 132.70 euros and interest rates Tan 6.26% and Taeg 6.44%. Comparing the estimate with that of Ultranix we note that the characteristics are very similar: in this case too, choosing a repayment in 96 installments, the amount of each will be 132 euros, with Tan 5.59% interest rates and Taeg 6.30%. Among the companies where we have simulated the loan there is Cleopar, which unlike the first two banks does not offer its customers the possibility to choose a duration of more than 84 months. Since this is a loan of 10000 euros and therefore not too high, this solution also provides rather light monthly installments. The amount that we are going to pay each month will be in fact equal to 167.98 euros, with Tan 9.9 percent interest rates and 11.2 percent Taeg. The best loan therefore depends a lot on what the needs of the customer making the request are.

A comparison of this type obviously does not allow definitive conclusions on which is the best financial to which to rely to apply for a bank loan. In any case, this is a useful example first of all to understand the interest rates applied and the repayment installments that could be paid for requests for money close to € 10,000. At the same time it is an example that shows how to identify the cheapest loan in absolute among those available on the market. If you are looking for a bank loan, then we advise you to compare different proposals, including changing the duration of the loan, remembering that the lower the number of installments and the lower the interest you will have to pay. Comparing the treatments offered by different banks is really simple and immediate, so you just have to visit the websites of the main banks to immediately identify the financing that suits you.

How to renegotiate a bank loan: services and costs

How to renegotiate a bank loan: services and costs


We have seen all the characteristics of bank loans and how to identify the most convenient financing in absolute terms. To complete the analysis on this particular financial product, what we have to do is take a look at the services offered by the banks. In particular, is it possible to renegotiate a bank loan ? In most cases the customer has the option to choose this option. For example, we are talking about the case in which a bank loan was received for which repayments are being paid. If in the meantime additional liquidity is needed, it is possible to ask the same bank for an additional sum of money, obviously under certain conditions. First of all, the sum of money must be less than or equal to the total amount repaid at the time of the request. Furthermore, a minimum number of installments is usually set which must necessarily have been paid before further liquidity can be received.

In general, therefore, it is possible to renegotiate the bank loan received in the past, requesting an additional sum of money. However, this is not the only service we can choose to renegotiate in financing. In many cases it is indeed possible to modify the characteristics of the same. If you want to save on interest, the early repayment of the bank loan is always available. In this case we will pay in one single payment the missing amount to complete the repayment, and therefore we will not pay the interest for the following months. As for the monthly payment, the services available are those that take the name of ” Malta Rata ” and ” Campay Rata “. Choosing these options we can therefore choose not to pay an installment, moving the repayment at the end of the loan and in fact extending the duration. By modifying the installment we can instead choose to pay a lower or higher payment by increasing or decreasing the duration. All these services allow us to customize the features of our financing to the maximum, in order to allow us to choose between the convenience of a light installment and the savings on interest.