Are you furnishing or modernizing your home? Do you need a new bedroom for children, a more modern kitchen, or simply a new look for your apartment?
If you do not have the necessary liquidity or do not want to fund your savings, the best solution is to apply for a loan to buy furniture: in this way you can buy all the furniture you need by paying them in convenient monthly installments.
Furniture financing, should you do it?
The answer to this question is not univocal, because it depends very much on the needs of each of us. What we can say is that this is certainly a convenient and widespread solution, so banks and finance companies often offer loans to buy furniture at very advantageous interest rates .
Instead of putting aside every month to get the amount you need, you can immediately buy the furniture you need, and the difference in price will not be so significant. It is really useful if you need to buy a kitchen, a living room or a bedroom urgently, perhaps because you are furnishing your home or renovating it.
Funding for furniture and kitchen: who to ask? How much can you ask?
Generally there are two types of financing suitable for the purchase of furniture: the personal loan and the finalized loan .
In the first case you will receive the requested amount directly on your account , which you can use in any shop of your choice for the purchase of the furniture, and you will reimburse the loan according to the installments provided for in the amortization plan;
In the second case, the retailer you go to has established an agreement with a lending financial institution , and therefore you can activate the loan, which is tied to the purchase of the specific asset, directly in the shop. The amount is paid by the finance company to the seller, while the buyer repays the debt in accordance with the amortization plan.
You can apply for a personal loan too to finance the simultaneous purchase of multiple furniture or appliances. For example, you can apply for a loan when you are furnishing your new home or want to replace all the furniture in bulk.
The maximum amount that is usually paid is 30 thousand dollars. The regards the timing, the loan is generally issued within 5 days, although it often depends on the bank or company you apply to. The reimbursement method for furniture loans takes place, as for the other types of personal loan, through the repayment of monthly installments, the amortization plan generally varies from 24 to 120 months.
What are the requirements?
Financing to purchase furniture does not require specific requirements except for regular and demonstrable income and adequate financial reliability (not having debts or delays in paying other loans). The acceptance of the requests also depends on the assessment of the applicant’s level of income and the relationship between the last and the possible repayment installment. In any case, essential basic requirements are:
- Age between 18 and 75 years
- Demonstrable income
- Residence in the territory
- Account holder
In addition, each bank applies its own risk policy in assessing requests, based on the statistical data it has (credit scoring).
As already mentioned, if the applicant’s credit history shows delays in repayments of previous loans, outstanding, etc. the probability that the request will be accepted is obviously lower.
In some cases, a valid alternative may be the salary-backed loan. This form of financing, dedicated to employees and retirees, allows for more flexible evaluation criteria.
What documents should I present?
To apply for any type of financing you need:
- Identity card
- Tax Code
- Income document
- Residence permit (if you are a foreign citizen).
Regarding the certification of working and income conditions: employees must send the last paycheck (sometimes the last two are required), pensioners present the last pension slip. Instead, freelancers must present the latest tax return (730 or Single Form), the F24 form certifying the payments, the certificate of attribution of the VAT number and the chamber certificate.
In some cases and for certain loans, it may be necessary to present the latest electricity, water and gas bills.
How to get a loan to buy furniture?
To obtain financing to buy furniture, you can go to the bank or contact a financial company. The problem is that you risk taking out the first available loan, which will probably not be the most advantageous . The best thing is to get informed and compare the various offers and choose which one is right for you.
Always evaluate some items like:
- the guarantees required;
- the interest rate applied (evaluates the TAN and above all APR – annual percentage rate of charge);
- Any interest on late payments;
- any other incidental expenses, even one-off (such as preliminary costs, etc.) or compulsory insurance;
- the total amount of the loan;
- The refund method;
- the number, amounts and due dates of the individual installments;
If you have already started looking, you will have realized that the loan offers for furniture are many . How to evaluate the one that suits you best? On the internet there are many comparators that allow with a few clicks to identify the loan offers for furnishings that best suit your needs.
You can calculate a free quote for a mortgage loan directly online, thanks to an online comparator. Simply choose some data, such as the amount of money you have in mind, the duration of the loan and so on. You will immediately be calculated the amount and number of installments to be repaid, and you can proceed with the loan request directly online. Try it now!