The universe of personal loans is characterized by a multitude of different products and offers of the various lenders and financial companies, which allow each potential customer to choose the most convenient opportunity for their specific needs. In this vast ocean of proposals stand out for their flexibility flexible personal loans, which is easily deduced from the word itself, have as main feature a greater flexibility in how to repay the loan, so much in terms of the amount of monthly installments about the timing and the modalities of the amortization plan: an essential tool in times when families in difficulty are increasing in number, year after year. Let’s see together what are the essential elements that characterize flexible personal loans, which we can basically divide into three areas: the possibility of skipping an installment, the modification of the installment amount and the early repayment of a loan.
If the person who has contracted the debt with the bank is suddenly the victim of unexpected financial difficulty, thanks to the flexible loan is able to skip one or more installments, depending on the type of contract stipulated with the bank, postponing the payment of these installments at the end of the repayment plan, without incurring the risk of ending up in the register of bad payers. Clearly, in order to obtain this undoubted advantage, certain conditions must be respected, such as having already repaid a minimum number of installments, usually at least 6. The installment jump is only possible once or even in a higher number, albeit with limitations, such as a maximum number of jumps, generally from 3 to 5, spread throughout the amortization schedule, with well-defined time intervals between a jump, usually 12 months. Although with limitations to protect the institution providing the loan, the jump of the installment meets the needs of a family in difficulty without the debtor can end up in the dreaded register of bad payers: the downside of the coin, easily understandable, is that the total cost of the loan is destined to rise as a consequence of the higher interest to be repaid.
Change in installment
Structurally very similar to the jump is the modification of the installment, both from the point of view of the peculiarities and the limitations of intervention: it is possible to change the amount of the monthly repayment after the payment in kind of at least 3 or 6 installments, depending on the condition provided by each credit institution, since the opening of the loan, and as in the case previously analyzed between a modification and the other must elapse at least 12 months, with some exceptions, to be implemented throughout the duration of the repayment plan until not more than 3 changes. Generally, the change in the installment is requested to reduce the amount, but it is also possible the opposite: it may happen that you have more liquidity than expected, and in this case increase the amount of the installment would reduce the period of repayment also affecting the interests.
Lastly, the flexible personal loan allows an early termination of a loan without paying any penalty on the residual capital. This option is undoubtedly a very advantageous solution if you have at your disposal the sudden liquidity that allows you to close the debt contracted with a credit institution prematurely, as regulated by Article 40 paragraph 1 of the Consolidated Law on Banking. However, some banks operate with exceptions with respect to the provisions of the text, providing that the early repayment of the loan can take place no sooner than 18 months have passed, or in some types of contracts the early termination provides that the customer must pay a penalty instead, which however can not exceed 1 percent of the remaining capital, according to the provisions of the relevant legislation.