February 27, 2020

Personal Loan Application: Your Rights

Before applying for a personal loan, you have the right to know all the conditions and characteristics: here are the documents that the bank must provide. If you are going to apply for a personal loan you need to know that there are several elements that you need to evaluate to be sure of choosing the most convenient product. The good news is that the bank will have to help you at this stage, ensuring maximum transparency of information.

When you go to a bank to get a loan, it is in fact obliged to provide you with a whole series of useful information and documents so that you can ensure the effective convenience of the loan before signing the contract. In this article we will therefore see what your rights are during the comparison of the various loans, at the time of signing the contract and during the repayment plan, based on what is established by the Capital Lender and reported in the Consumer Credit guide in Simple words.

What to know before applying for a personal loan

As we said, the bank is required to provide you with all the necessary information for free so that you can consciously choose the most convenient loan for you. To facilitate you in this phase of product comparison, you must therefore give yourself a copy of the Lite Money Financing form, that is the mandatory information document from June 2011. In case you have contacted an online bank, this document must also be available on the institute’s website . Furthermore, you have the right to receive and take a copy of the contract with you even before its conclusion and without any commitment.

All this documentation will allow you to know Tan, Taeg and the final amount due to the creditor, but also on what conditions you can withdraw from the contract in the future and proceed with the early repayment of the debt.

Your rights to sign the loan agreement

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Once you have chosen the right product for you, you must also pay close attention when signing the contract. In particular, it is important to verify that there are no unfavorable conditions reported with respect to those that have been advertised to you through the Lite Money Financing form or other information documents that have been previously provided to you by the bank.

Once signed, you are also entitled to receive a copy of the contract signed by the bank or financial company that grants the credit, to be kept and consulted for any future eventuality. Finally, we remind you that you always have 14 days from the conclusion of the contract to change your mind and withdraw without costs and without having to justify your decision.

Your rights when repaying the loan

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Once the contract has been signed and the loan has been obtained, you are entitled to receive at least one communication per year from the bank free of charge on the progress of the credit relationship. Upon request, the bank is also required to provide you with the amortization table for free with the details of the credit repayment plan. In the event that you should have delays in paying the installments , you are entitled to receive a written communication of the first report of transmission of the negative information in a database, such as the Crif.

In the same way, the bank is required to notify you in writing of a possible assignment of the credit or contract to a different entity, unless the credit management remains the responsibility of the original bank. Furthermore, in the event that the provider intends to make changes to the contractual conditions , the latter has the obligation to notify you at least two months in advance . In the event that you find the variations too unfavorable, the bank must give you the possibility to withdraw from the contract without any penalty.

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