Everyone has to change the furniture in their own home or have to buy new ones to furnish a newly purchased apartment, but you do not always have the necessary liquidity and that’s why there are loans for furniture . What is it? Let’s find out.

Furnishing loans allow you to obtain the necessary sums quickly and in complete safety at advantageous conditions, thus allowing anyone to buy the desired furniture. Some retailers enter into agreements with financial companies so as to offer customers direct financing for the purchase of furniture .

We are talking about targeted loans that allow customers to buy furniture in comfortable installments .

If the customer is interested in obtaining a finalized loan, a preliminary investigation will be opened in which the income received by the buyer will be checked by checking the latest pay slips (or pension). If the preliminary investigation gives a positive result, the sum of money would be delivered to the seller and the buyer will undertake to reimburse the sum according to the provisions of the amortization plan.

Not all retailers, however, offer the possibility of a finalized loan; for this reason, those who need furniture loans could go to a bank or a finance company. In this case, the bank grants furnishing loans to buyers, who will then see the required amount paid into their account. At that point they will have to pay the sum to the seller, complete the purchase of the furniture and then repay the installments provided for in the amortization plan.

Loans for furnishing usually have a maximum of 30 thousand euros and are usually issued within 5 days; therefore, it is a very popular solution for potential buyers. To access the loans for furniture, it will be necessary to be able to offer some guarantees to the banks as a fixed-term or permanent contract, stipulated for a minimum of 5 months, and the presence of a bank account.

It will be up to the bank to verify the ability of the buyer to be able to repay the installments of the loans for furniture. In some cases, banks may also require a guarantor to ensure the regular payment of installments.

To choose the bank where to request a loan for the furniture, it is advisable to study the loan contracts that are submitted very well and to check the presence of some important elements such as the amount and method of the loan, the number and expiry of the installments , the interest rate, the conditions in the event of default, the annual percentage rate of charge  and any guarantees required.

In the case of furnishing loans, consumers can also make early repayment of the loan at any time . In this case, however, the consumer will not only have to repay the remaining capital, but also pay a penalty that will never exceed 1% of the financed capital.