The cash loan is granted only to those who own at least one non-mortgaged apartment. This loan is a hybrid financial product “halfway” between a personal loan and a mortgage loan.
Depending on the chosen rate (fixed or variable), the repayment capacity (this means the credit history of the applicant, his monthly income and other factors) and the value of the property, the maximum amount that can be defined is defined. lent: it can go up to 70% of the property value if the rate is variable.
Characteristics and advantages of the liquidity loan
A characteristic to underline regarding this type of financing is the fact that there is no need to give any reason for which the loan is needed, the important thing is that it does not have the purpose of extinguishing bad debts or for financial speculations.
Compared to a personal loan, there are many advantages linked to interest rates which with the liquidity loan are more accessible (they are even reduced by 3-4 times); another significant advantage of this loan is the fact that the amounts are much higher compared to those of personal loans (which do not exceed the threshold of $ 30,000 in most cases. The duration to pay off the debt can even go up to 40 years ( the personal loan lasts for a maximum of 10 years).
Disadvantages of this type of mortgage
Regarding this loan there are some disadvantages to highlight:
- There are some expenses (notarial deed, preliminary investigation, appraisal and insurance) which are charged to the client and which may exceed the interest costs of a personal loan. So it is of fundamental importance to be well informed about the most convenient method on a case by case basis.
- Compared to a personal loan, access to the liquidity loan is much more difficult to obtain and much more creditworthiness is required. For personal loan it often only takes 24 hours to receive the loan amount.
- You may be afraid of losing your home. This is an unfounded fear as foreclosures are carried out only in extreme cases which are difficult to reach (by not paying a certain number of installments, one proceeds with various calls before proceeding with the foreclosure).
- The property must have particular characteristics, as it must be a civilian home.
- The property can also be a second home.
- The loan is only granted to natural persons.
Requirements to get it
The requirements to apply for this type of loan are as follows:
- Be 18 years of age;
- Owning a NON-MORTGAGE apartment;
- Have citizenship;
- Have a demonstrable monthly income.