Personal or home furnishing loans: how to find the best solution

Personal or home furnishing loans: how to find the best solution

 

A new kitchen, the children’s bedroom, the new sofa. Renovating a home is a nice investment, which may not be easy to fit into the family budget without delaying costs. Furnishing loans are a widespread financing solution, both in the form of dedicated loans and as a personal loan. Let’s see what the difference is and how to choose the best solution.

Having a loan designed for furnishing is possible when the retailer, upon agreement with a financial company, allows the customer to pay the purchase in installments. The debt with the retailer is immediately paid by the financial company, which the client in turn will repay in installments and at the pre-established interest rate. In some cases, for promotional purposes and for sums contained, for example for the purchase of a sofa, the customer is offered the possibility of paying in installments at zero rate, or simply to postpone the payment without interest. To understand if the operation is really without costs for the customer, it is necessary to look at the APR, the total cost indicator, but even if the TAN is 0% and the APR shows a management cost, it is still possible to weigh the convenience of the offer compared to other financing proposals at higher rates.

When it is not possible to have a finalized loan, because it is not available for the desired object, or because the necessary sum is too high, or simply because liquidity is needed for more than one purpose, personal loans can be used for furnishing. In this case, the necessary sum, as always upon approval of the financial company, is paid directly into the current account and through the repaid current account, at costs and interest and over a contract term. Several financial companies offer in their range of loans a section dedicated to furnishing, sometimes combined with special promotions, for amounts that can reach up to 40,000 or 60,000 euros, to be used freely to fully cover the home renovation projects.

Loan estimate of 10000 euros

Loan estimate of 10000 euros

 

Financial: Dimple Loan
Product: Personal Loan
TAN Fixed: 4.25%
APR: 4.44%
Loan duration: 60 months
Amount Financed: € 10,000
Total due: € 11.117

Monthly installment € 185, 28 Feasibility check 

Financial: Ultranix
Product: Personal Loan
TAN Fixed: 5.16%
APR: 6.70%
Loan duration: 60 months
Amount Financed: € 10.146
Total due: € 11.735

Monthly installment € 193, 19 Feasibility check 

Financial: Astrofinance
Product: “Your Projects” Credit
TAN Fixed: 6.01%
APR: 6.18%
Loan duration: 60 months
Amount Financed: € 10,000
Total due: € 11.602