Form of Financing| Credit Loans

 The annuity loan is a form of financing that differs from all others due to the absence of monthly repayment in installments. The capital disbursed will in fact have to be returned in a single solution at the end of the contract. Obviously the interest rate component remains, which represents the final cost of the loan, and which must also be repaid at maturity and not at pre-established periods. This is a personal loan, obtainable therefore regardless of use. The only exception is that it is not possible to finance the purchase and renovation of real estate, the professional activity of the applicant, the reinvestment in financial instruments with this loan.
Following the entry into force of Law No. 44 of 2 April 2015, some elements regarding the methods and costs of the annuity loan have changed significantly. The new rules are described in the following article:
Annuity Loan, new Law 2 April 2015, n.44. What changes?

Lifetime loan characteristics

Lifetime loan characteristics

It is a form of financing linked to a property owned, where the loan applicant has residence, which is the only real guarantee on the transaction, a guarantee that is expressed by the activation of a mortgage. Upon completion of the preliminary investigation, the obliged party will receive the requested amount from the current account, which may not exceed 50% of the appraisal value of the property. The amount cannot exceed € 400,000. The interest rate is fixed and the initial duration of the loan is 30 years, with tacit renewal. .adslot_1 { width: 320px; height: 200px; } @media (min-width:800px) { .adslot_1 { width: 600px; height: 300px; } }

Who can apply for an annuity loan

Who can apply for an annuity loan

I can get this form of loan only people over 65 years of age, owners of a property (with the exclusion of those with a value of less than 100,000 euros) in which they have residence and live continuously.

Extinction of the annuity loan

Extinction of the annuity loan

There are two ways to extinguish the life loan: they are the early repayment and the expiration at maturity. In the first case penalties will be applied with percentages to decrease based on the amount of residual capital. In the second case the deadline coincides with the death of the debtor, or if the loan is jointly held, upon the death of the last spouse. After this date the reimbursement must take place within 10 months. If the heirs do not provide for the extinction, the lender will sell the property and, after having returned the capital, interest and additional costs foreseen, will liquidate the heirs with the remaining part. 

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