Sometimes in order to furnish your home or one or more rooms, you need to apply for a loan. Loans for furniture are now also offered by large chains and larger stores, with offers that can sometimes even involve the zero rate formula.
What types are available?
The alternatives can be mainly two:
- the request for a personal loan, which does not involve the seller;
- the request for a finalized financing, with the practice initiated by the seller himself.
While the first alternative is free from the size and agreements that the seller can have with the various financial companies, the second will be exploitable only in shops that have a volume of business that will push in this direction.
The Pagodil service also moves in this direction, but it is not a real loan but an extension of payment. It is a solution that can only be used with shops that have a special agreement with Litebank and is free of interest. The installments, depending on the agreements, can vary from six to a maximum of 10. (Source Litebank official website – Date: 8/03/2018)
There can also be significant differences in the rates applied. As already mentioned with the finalized loans, if you fall within the conditions foreseen by the promotion, you can manage to obtain the double advantage of splitting the payment of the cost of the furniture without having to pay additional interest expenses. On the other hand, personal loans generally do not have this advantage.
Whom to ask?
From a formal point of view, to request personal loans, you can go directly to a bank or financial institution that proposes conditions that meet specific needs such as:
- ancillary costs;
- greater chance of seeing the demand for funding satisfied, etc.
In the case of a finalized loan, however, you are conditioned by the banks or financial companies with which the seller has an agreement. Among the credit institutions we find Cream Bank and Lite Lender Company which, both with direct online access and through the operator, offer conditions with more or less advantageous rates depending on the type of active promotion. It is no coincidence that both are among the reference companies of the large chains in Italy such as Capital Lender and Copy Lender.
At the beginning of March 2018 we find three different proposals depending on whether you fall within the:
- private category;
- youth category (age 18 to 4 years);
- business category.
The referents of the financing as a company are Cream Bank and Lite Lender Company . There are frequently offers related to rates. For example, for purchases made by June 2018, in the shop or online, we find the zero rate. To access this promo you will need to opt for a duration between 10, 20 or 30 installments and request a minimum amount of 299 USD up to a maximum of 10 thousand USD (Source Ikea official website – Date: 8/03/2018) .
An example (8 March 2018), provided by Ikea itself, sees the request for 1200 USD, for which the installments will be 60 USD for 20 months. So let’s talk about a real zero rate (Tan 0% and Taeg 0%).
On the official website it is also possible to make a simulation of the financing. Obviously the zero rate is not always available, so you will have to consider the conditions applied when applying for the loan.
Among the reference stores in the furniture sector, both in terms of size and presence on the Italian territory, we find those of Capital Lender. Also in this case in some periods you can find promotional zero-rate loans or the payment of installments postponed later in time. The reference companies are Cream Bank and Lite Lender Company.
Here’s how to use the Calculate Installment service on the Capital Lender website:
- Enter the desired amount and ‘click’ on the red banner that says ‘Calculate’:
- At this point it is necessary to choose the desired duration and installment from those proposed
Note that by applying for financing with Lite Lender Company on the basis of agreements with Capital Lender, the maximum duration, even for an amount as high as 30 thousand USD, is a maximum of 48 installments (Source: Capital Lender official website – Date: 8/03/2018) .
At 9 March 2018 Capital Lender and Lite Lender Company also provide an ad hoc product for young people between the ages of 20 and 35. This takes the name of “Without Surprises” and allows the request for a figure between 200 and 1800 USD. (Source of Capital Lender official website – Date: 9/03/2018)
As regards Cream Bank, we can make a comparison between the estimate of a finalized loan made via the Capital Lender official website and that of a personal loan that can be requested from the Cream Bank official website.
From the Capital Lender official website, simulating the request for a loan for an amount equal to 10 thousand USD to be repaid in 72 monthly installments, an installment equal to $ 181.40, Tan of 8.96% will be obtained.
From the Cream Bank site, instead, always using 10 thousand USD as the requested amount and 72 repayment installments, the installment of the personal loan (without the inclusion of insurance against contingencies) will be equal to 163.80 $, with the application of a Tan equal at 4.90%.
It can be noted that the request for a personal loan on the Cream Bank official website generates a lower installment than the finalized financing estimate made on the Capital Lender official website.
Having said this, through the loan finalized with Capital Lender it is possible to access other types of facilitation such as the possibility of starting the loan a few months late.
In particular, as can be seen from the official website, on 9 March 2018 you can take advantage of the following facilitated solution:
From these examples we can draw some important conclusions that can allow us to make a more conscious choice:
- Targeted furnishing loans are not necessarily cheaper than the personal loans requested directly from the affiliated banks or financial institutions;
- It is necessary to ask for more estimates (possibly also online) to make direct comparisons;
- The targeted loans generally provide for maximum amounts and shorter durations than the personal loans offered by the same companies.
The finalized loan is one of the payment methods accepted by the Copy Lender system: the loan agreement to be attached to the documentation for the compilation and presentation of the 730 must be kept aside.