Often, when planning monthly expenses, we find that the new home improvement, the refurbishment of a freshly renovated apartment or the long-planned purchase of a sofa will have to be postponed for even longer. But not always the idea of a new breeze in the dwelling should be postponed – there are several banks and private loanors offering loans for furniture. You can make a loan from one of the most attractive branches of the bank or by filling out a questionnaire on the Internet and receiving money for the purchase of furniture in your bank account within ten minutes.
There are several types of loan available for borrowed furniture. Depending on the amount of money you need, you can choose the most appropriate loan, but in most cases, the most appropriate loan for furniture will be consumer loan. Read more: Which loan types are available?
When choosing consumer loan for the purchase of furniture, it is important to evaluate the loan amount, the loan repayment period, and your ability to repay the loan.
Consumer loan gives you the opportunity to borrow an amount that is often measured in the thousands. However, it is advisable to borrow exactly as much as necessary to purchase new furniture and bring it to your home. Borrowing exactly what you need to borrow would be better because you will have to add the missing amount from your finances by borrowing a smaller amount. However, if you choose to borrow a much larger amount than necessary to purchase the furniture, interest rates can significantly increase the amount of money to be repaid.
By borrowing furniture and choosing a consumer loan, you have the option of repaying the loan amount gradually – this is one of the differences between this loan and quick loans that have to be repaid in one payment and within a month. Consumer loan furniture usually has to pay back from 3 to 36 months, often repaying the loan amount even within 60 months. This kind of repayment will give you the opportunity to discuss the terms of the bank or individual loanor with the loanor, choose the most appropriate repayment schedule – the most appropriate amount of the monthly payment, evaluating your income and the possibilities to repay the loan within a certain period of time.
The most popular types of repayment schedules for consumer loan are the declining and equal payout schedule.
When drawing up consumer loan for the purchase of furniture, there is no need for a pledge or guarantor, which makes the drawing up of this loan quicker and easier than, for example, drawing up a mortgage loan. Stable monthly income is the most important aspect of consumer loan for furniture purchases – usually banks or loanors evaluate your income and the ability to repay the loan by examining your bank statements for the last three months – as well as loan history. Good loan history is for those consumers who make their existing or past loan payments in due time, while bad or damaged loan history is made up of delayed loan payments or full loan avoidance. Even if your loan history is bad, you have the opportunity to get a loan for furniture purchases, but often a loan loan can take a considerably longer period of time.
At present, private loanors and their offers have become increasingly popular and competition between them has increased. It is for this reason that many of the loanors offer interest-free loans (also called free loans or 0% loans).
If you choose an interest-free loan for furniture purchase, you will have to return it at the end of the loan repayment just as you borrowed without paying the interest rate. Although such a non-interest-bearing loan to loanors does not bring any profit, such a business model is a very successful way of attracting new customers – a non-interest-bearing loan to a particular loanor will only be available to you for borrowing for the first time, but the next installment and interest payment will be the next installment. If you have previously borrowed for furniture or for some other purpose using a non-interest-bearing loan, remember that you will not receive a non-interest-bearing loan from the same loanor, so you will have to choose another loanor to get such a loan.
Although the purchase of furniture using interest-free loan sounds really attractive, often these loans become less binding due to many different rules and restrictions. Often interest-free loans have a relatively low loan amount, so be sure to investigate each lender’s offer and evaluate the terms of the loan and repayment.
Even if you choose an interest-free loan for your new furniture purchase, the loan amount must be repaid on the specified date and time period. Most often, it is not possible to extend the term of interest-free loans. However, if loanors offer such an option, you will have to pay the basic amount and the interest rate set by the loanor at the end of the initial repayment term. If you have come to an unexpected financial difficulty and are unable to repay your monthly payment in time or avoid repayment of the loan, you will not only have to pay the interest rate set by the loanor but also the interest rate. That is why it is very important to assess your financial position now and your potential future. As with any other loan, you must comply with all the terms and conditions set by the particular loanor.
Most loanors receive interest-free loans for the purchase of furniture for people aged 20-75, if you are 18-19 years old, getting such loan is more difficult. This age limit is determined by the fact that most young people of this age usually study or study, so these people are mostly not in a stable income and loanors do not benefit from such a deal. If you are under the age of 20 and you are certain that you will be able to repay the loan amount in due time, then choose the most suitable loanor and fill out the application form on the Internet.
Your loan history and monthly income are also very important for receiving interest-free loan. Before applying for an interest-free loan, evaluate your monthly income and loan amount. If your income is unstable and the amount needed to buy the furniture is greater than your average monthly income, loanors are unlikely to want to grant you a loan. However, each situation is assessed on an individual basis and depends on the rules of the particular loan institution and the employees who will assess whether the loan is granted.
When deciding on an application for a loan for furniture purchase, compare the terms and limits of interest-free loan and consumer loan, evaluate the advantages and disadvantages of each option and choose the loan type that suits you best.
Choosing the most favorable loan institution, thoroughly investigate the offers, terms and restrictions of various loanors, as well as evaluate their monthly income and ability to make regular loan payments.