How to find a cheap personal loan in 5 steps

To find the most convenient and suitable personal loan for you, there are several aspects to consider, including Taeg and Tan, duration and insurance.

Finding an affordable personal loan is not always easy, but not only because of the banks. Often, in fact, it is we who choose the wrong formula that will make us throw a lot of money in interest or that will offer us installments that are too high for our pockets. Here are 5 tips to make the right choice.


Compare multiple personal loans

personal loans

Very first useful tip in these cases is to inquire about more products, perhaps with the help of an online comparator to optimize time. If you have not already done so, we advise you to immediately take a look at the financing offered by the Lite-Compare comparator, where you can perform accurate simulations to find the best product according to your needs. The advice is to compare at least 5 or 6 solutions proposed by different banks and financial companies.


Choose the lowest TAN

The Nominal Annual Rate indicates the interest rate at which the bank lends you the money. The lower the TAN, the less interest you will have to pay. When comparing the various loans on the market, therefore, pay attention to this indicator.


Watch out for the APR

personal loans

While the TAN only indicates the interest rate, the APR expresses the total cost of the loan. Therefore, in addition to interest, it also includes ancillary costs, such as those of preliminary inquiries, opening and closing of files, stamp duty on the contract and so on. In general, when comparing different offers, the APR is precisely what allows you to find the least expensive solution faster. Choosing the loan with the lowest APR will therefore help you keep the costs of the whole operation down.


Check if there is financing insurance

Except for the formula of the assignment of the fifth, loan insurance is not mandatory. However, it is not uncommon for the bank to offer one when entering into the loan agreement. In general, the advice is to evaluate the usefulness of a credit protection policy. If you think you may have difficulty repaying the installments, better take advantage of the security guaranteed by a policy. In this case, be careful to carefully evaluate the cost, since it is not always included in the APR.


If you want a lighter installment, extend the loan term

loan term

If you think you may have difficulty repaying too high installments, choose a loan to be repaid over a longer period. Doing this will not only allow you to have a lighter monthly installment, but will also increase your chances of the loan application being accepted by the bank. In principle, the ideal is that the installment does not exceed 30% of your net monthly income.