Loans changed: what they are, who makes them and how to receive them
Loans changed are a form of financing that many people resort to when they need to get money in a short time and without having to submit too many documents for the loan. But let’s see in detail how these loans work.
First of all it is necessary to specify that this type of loans without paycheck is called this because the repayment of the monthly installments corresponds to the payment of predated bills. But what is a promissory note?
Loan definition with promissory note
The bill of exchange is a debt security that allows the creditor (in this case the credit institution that issues the loan) to obtain the fulfillment of his claims in a short time in case the debtor is unable to pay the installments at the due dates.
Thanks to the enforceability of this credit title, which is guaranteed by the presence of the imposed stamp, the bank can quickly start the expropriation of the insolvent debtor’s assets, without going through the ordinary bureaucratic delays that instead would have been activated if the financing was a personal loan tradition.
In other words, those who take out loans with bills of exchange and then do not regularly repay the installments, will suffer a protest in no time.
Thanks to the presence of bills, in fact, the bank can present itself directly to the notary with the credit title and make the client protest to refer to his assets.
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However, it is necessary to specify that the bill of exchange can be issued in the form of a “draft ” or a “promissory note”. In the first case, the bill of exchange is configured as an order, which the bank sends to the debtor, to pay a certain amount to a third party (which generally coincides with the bank) within a certain date.
If the promissory note takes the form of a promissory note, on the other hand, this represents a promise of payment that the debtor will formalize with this credit document. This is the form of promissory note most commonly used in promoted loans.
In order to use a bill of exchange as a payment instrument, it is necessary to complete it in all its main parts:
- Place and date of issue
- Amount (written in numbers and letters)
- Expiration date
- Diciturà “promissory note” to identify the promise of payment
- Domiciliation (the place where the promissory note will be paid, which generally coincides with a bank branch)
- Debtor details
- Signature of the debtor
Upon disbursement of the promised loan, the beneficiary will have to sign as many promissory notes as the installments for the amortization plan, obviously every promissory note will expire on the day on which the payment of the corresponding installment is expected.
Once all the bills have been signed, the customer delivers them to the bank which will arrange for them to be paid at home. Each time he pays an installment on time, the client will be given the corresponding bill of exchange and a receipt stating that the payment has been made.
What is the promissory note
It seems clear fifth why many banks prefer to lend changed loans to some customers. Thanks to the promissory note, the lender can meet his credit much faster than he could with a traditional personal loan.
In case of insolvency, in fact, the bank that grants the credit goes to attack the assets owned by the debtor, with a very rapid procedure that sees the intervention of the notary.
The recipients of the changed loans: bad payers and protests
Loans exchanged are a form of financing to be taken into consideration if you are reported as bad payers, because thanks to its structure it is also accessible to those who have had problems in repaying a past loan.
These are loans that have been exchanged mainly for all those who need money and are able to demonstrate that they will be able to repay to be able to repay the credit in the agreed ways and times.
However, compared to the other forms of personal loan, the changeable loans can boast some distinctive features, which often make them preferable. As we have seen, in fact, they represent a privileged form of financing for creditors, since they can refer to the debtor’s assets more quickly.
Consequently we can outline two figures of potential applicants:
- Individuals with ordinary creditworthiness requirements : people who can boast an income from work and who could probably also have access to other types of loans without excessive problems.
- Subjects not in possession of ordinary creditworthiness requirements. People who do not have a job or a demonstrable income or who have had problems returning other loans.
Both categories of applicants can have a loan with bills. However, while for those who have a demonstrable income, the changed loan is only one of the options, for the subjects who do not have a bank or who have suffered protests it is in most cases the only form of access to credit. This is precisely because of the greater security that is offered to the creditor bank.
It is essential to remember, however, that the loans changed are still loans granted at the end of an investigation, during which the bank will try to define the substances through which the beneficiary can repay the loan.
Therefore, if the applicant does not have sufficient guarantees to guarantee the repayment of the credit, even if it is a promised loan, the financial company may request the guarantee of a third person, i.e. a guarantor who undertakes to repay the loan in case of insolvency by the debtor.
The advantages and limitations
Loans changed often surround themselves with false myths. Just take a quick tour of the web to find yourself in front of sites that do not contribute to spreading truthful information. So let’s do a bit of, summarizing the advantages and disadvantages of loans with bills.
Changed loans: the solution for bad payers
Elasticity in the return. Compared to what happens with other forms of financing, loans with bills of exchange guarantee greater flexibility in both renewal and repayment. In the event that you are in financial difficulties, for example, you can renew a promissory note, or issue new ones.
Payment also without paycheck. The granting of exchanged loans follows a different path from that envisaged for ordinary loans. Even if the bank still requires some guarantees in the return of capital, we can say that these loans allow you to have some more opportunities to access credit, even without a paycheck.
Why not choose them
Beware of bills. The bill of exchange represents an advantage for the banks but, at the same time, it is a loose cannon for those in debt. If the borrower fails to pay a bill of exchange, he runs the risk of being protested. Which starts a procedure for debt collection in much shorter times than what would normally be used for “normal” loans.
Consequently, not paying a promissory note could cost the borrower very dearly, who would find himself / herself seized and at the same time registered in the register of protesters, thus being denied the possibility of a new access to credit.
High costs. Loans exchanged represent for many subjects a sort of “last resort”. It is therefore clear that those who apply for a loan with a promised loan must take into account the risk of going up against rather high costs, especially when compared to other forms of loans.
In fact, the installment of the promissory note not only contains an interest rate that is often very high, but also costs and accessory costs associated with the granting of the loan. Therefore, before signing the contract, it is important to pay close attention to the costs associated with financing.
Accessory guarantees. Unlike what many sites say, the bill of exchange is by no means the only guarantee that the bank requires, but only the instrument through which it protects itself most. Therefore, ancillary guarantees such as the signature of a guarantor, the signing of a life insurance policy, lien rights, etc. will also be necessary.
Loan offers changed online
Who to contact for a loan with a promised loan?
After having clarified all the information on the nature of the products, it is possible to focus on who makes loans with bills. There are still few financial companies that allow you to request these financial products and among the most famous names in this regard it is possible to remember Agos Ducato, as well as numerous other small companies that operate in particular online and locally.
We conclude by recalling that a higher fixed rate is applied to the type of loan with bills of exchange than that of traditional loans, as they are considered to be at greater risk of insolvency.
Types of financing with promissory note
Even if the mechanism is always the same, the ratios underlying the changed loans can be different. Of segutio we distinguish 5 distinct types, all fairly frequent.
Loans exchanged between private individuals. Loans with bills of exchange are not an exclusive prerogative of banks, even a relative or friend can lend money to those who need it, through the issue of bills. Of course, there are several causes that can lead a person to prefer a loan exchanged between private individuals over traditional financing. However, it is always advisable to use maximum transparency, with a written contract and with the help of an expert who can check the clauses present.
Loans with bills for self-employed. Self-employed workers have more and more difficulties than employees in accessing credit. The explanation is quite simple: assessing an employee’s creditworthiness is easier.
This means that many self-employed workers suffer from the constant difficulty of finding useful money to finance their personal projects. For them, loans with bills for self-employed continue to represent a hard core in personal financing.
Loans with promissory note without paycheck. Loans exchanged are disbursed with less rigidity than other loans, therefore banks may turn a blind eye even if the applicant does not have an employment relationship that can be documented with a paycheck.
Of course, if you are applying for a loan without a paycheck you must present an alternative guarantee. Guarantees of guarantors, pledges on assets, mortgages on real estate, and so on are very likely.
Bad payer loans. Loans with promissory note for bad payers allow access to sums of money even if the applicant has had some small problems in repaying past loans.
Loans changed at home. On the Net you can also find financial companies that offer loans changed at home. These are loans that can be disbursed directly to the applicant’s home, thanks to the activity of agents and intermediaries operating throughout the Italian territory.
Loans changed for self-employed
The effects of the crisis have induced an increasing number of self-employed workers to resort to access to credit, which is why loans changed for self-employed people are born. These are credit lines tailored to meet family needs or the burdens arising from one’s professional or entrepreneurial activity.
Given that the self-employed worker does not have a continuous flow of income, the providers do not easily grant loans to the self-employed. The credit profit can be even more critical if the applicant has had problems in the past in the repayment of previous loans (in this case we speak of protested or bad payers).
In the event that the loan is requested by a self-employed worker, a series of guarantees are necessary, we see the most frequent ones.
Life insurance is usually provided, a guarantor and / or mortgage on a property may also be required. We must also specify that the disbursed loan is disbursed by means of a cashier’s check made out to the applicant.
The maximum installment can reach one third of the average demonstrable net income. If there are other loans in progress, in addition to the same loan changed, the total charges to be incurred must not exceed half of the average demonstrable net income.