Bills of exchange, with the birth of the various types of loan, have become less and less popular. However, for some categories, one of the few alternatives available remains, if not the only one, such as bad payers or protests, especially if they belong to the category of self-employed workers or more generally be without paychecks.
However, they are back in fashion as they can be considered a form of fast loan, and for the certain characteristics that characterize them, so as not to leave room for interpretations and evaluations. A very important aspect in a period in which disputes between financials or banks and consumers and companies have increased sharply, due to the application of usurious rates.
Characteristics of loans changed
Loans exchanged have a very simple operation, and are also subject to high personalization with the issuing bank, which makes them suitable for all subjects. Even those who have loans already in progress, and consequent difficulties in accessing other loans, can in fact request them. Some banks have ready-made solutions among their financing products, complete with freely available information sheets (as in the case of bills of exchange which have never lost their usefulness). If, however, similar situations do not appear, it should not be taken for granted that they will not be granted: information must always be requested directly from the branch staff.
The changed loan is also part of the loans between private individuals, and represents one of the most used forms also among acquaintances and family members. In fact, if the legal indications on the payment of stamp duty, on the compilation of the bill of exchange and above all on the interest rate applied can be observed, they can be freely issued by anyone over the age of 18 and who has a sufficient sum to lend.
Amounts and duration
Generally there is a minimum amount that starts from $ 1,500 and a maximum amount that is conditioned by the applicant’s income and capital capacity, and a fixed rate. These conditions, however, are very variable and cannot be classified as is the case for other financing products or payment.
The bank, the finance company or the private lender will calculate the total amount to be repaid, including the principal, interest and any stamp duties, then dividing the amount obtained by the number of repayment installments (which varies from one minimum of 12 to a maximum of 120 installments), so as to indicate the amount of each ‘section’ which must be repaid within the agreed deadlines. These are indicated by the dates which are indicated on each promissory note.
As documentation are required:
- identity document and tax code of the applicant;
- paycheck (if employee or pensioner) or latest tax returns for self-employed workers or other income certification;
- for high amounts or in the absence of income, guarantor or demonstrable assets (such as investments, also tied or property).
Each time the bill of exchange is due to expire, it is delivered, which certifies the payment.
Who is without paycheck and without demonstrable income?
Who lends money, whether it is a private individual or a bank, wants the guarantee that he will be able to recover it possibly in the manner and time indicated by the loan agreement itself, or as reported in the various bills. So it is unlikely that a loan of any kind will be granted, including the loan, if you have no demonstrable income or recurring income.
If you own a property, the form of the mortgage bill could be proposed. As can be understood from the name, a mortgage is placed on a property owned as collateral for the payment of bills. So the formalities will be more complex but above all the ancillary expenses will be higher.
In addition, the percentage financed will be very low compared to the value of the property itself. It therefore becomes easy to understand that the lender has an interest in exploiting the enforcement power that comes from the nature of the executive title of the promissory note itself to gain possession if the funded person does not pay on time. Therefore, particular attention must be paid to this specific type of loan, because the risk of losing your home or other property even if you have missed a single payment is very high.
Positive and negative aspects of loans changed
Among the positive aspects there is the greater ease of access (with the possibility offered to categories otherwise excluded from the world of credit) and the very rapid times (even only 24 hours for the green light and at most 48 to obtain the sums requested) .
The loan changed is governed by law, and in fact it is possible to access it, in a legal way also between private individuals as already mentioned (see also Private financing), provided that the interest rate applied is overall lower than the usury rate.
It does not require a complex procedure, but it is sufficient to use the form of the bill of exchange, and to pay the stamp duty (attention if the stamp is not paid to the exact or sufficient extent, the bill of exchange is always valid but it is no longer an executive title). For the compilation you can follow a simple guide, also available on online sites, paying particular attention to the insertion of mandatory data and the effects of the turn, or to particular situations such as improper bills.
Even if not required in a mandatory way, it is still recommended to make a contract that summarizes the conditions of the loan:
- duration or the number of bills and the frequency of payments;
- payment methods, for example if it must be done at a lawyers ‘or professionals’ office, or at a specific bank;
- interest rate applied and how the requested sum will be delivered (bank transfer, cashier’s check, etc.).
The contract is useful above all to give explanations, if required, on a fiscal level.
On the other hand, the negative aspects remain the issues related to late payment situations, which open directly to the procedures for recourse by the issuer (unless it proves particularly tolerant), since it is an immediately enforceable title. A problem that is not mitigated by the number of installments still to be repaid or by the correctness of the payments so far.
With the advent of loans with electronic access there has also been the spread of numerous proposals for loans changed online, for which, however, one must always be very cautious, given that it is a form that often lends itself to real scams. A similar situation can occur with loans with bills of exchange at home, especially if you do not have direct knowledge of the people who will show up at home. It is therefore increasingly safe to turn to the banks that offer this service.