Finalized and non-finalized loan: the differences

 The 3 things to know:

  • Finalized loan: loan requested with a specific purpose

Each of us has dreams in our drawer, but some of them need funds to be realized. That we have clear what we want to achieve, or that we need a sum to be used generically for a plurality of things, there is always the financing that suits us. In the first case we can resort to a loan aimed, in the second, at a non-finalized one.

Finalized loan: what it is


The purpose of the loan, as the word itself says, requires that the purpose for which the loan is to be used is well specified , and the use of money is so bound . This type of financing is activated at the suppliers of goods or services to be purchased (affiliated shops or dealers), which will be paid in installments with the sum disbursed by the loan by virtue of an agreement stipulated with the lender. The sum must therefore be credited not to the applicant, but directly to the dealer. This type of financing is often sold, at the expense of a commission, by the same dealer in conjunction with the purchase of a specific good or service (for example, this is often the case when buying a car or furniture). In the loan contract (separate from the purchase contract, even if linked to it) the amount borrowed and the purchased good must be indicated. The deed proving the purchase of this asset must also be attached.

Who can apply for the finalized loan?

This type of loan is granted to adults who are not bad payers , which
have an income situation that makes the installment sustainable , and that offer the necessary guarantees .

Unfinalized loan: what is it?

Non-finalized loans, on the other hand, do not imply the obligation to indicate the purpose of the loan , which can be requested from any credit institution without any need for agreements. In this case, the amount is paid in the way agreed directly to the person requesting it; the customer will then use the sum as he wishes, without accounting to the bank or have specific purchase obligations at participating stores. Only in some cases – for example if specific conditions or facilities are provided for certain types of use of the loan amount requested – the applicant may have to specify how he will use the money, and attach the related documents.


Who can apply for the unfinished loan?

The non-finalized loan is granted mainly to those who are able to show an envelope
pay as a guarantee ; often the appointment of a guarantor or guarantor is also requested.

Which loan do I choose?


In terms of possibility of use, obviously, the non-finalized loan has the advantage of leaving the customer full discretion , which obviously can spend the sum also for those purposes for which the finalized loans are provided. Since this is a type of financing that all banks and financial institutions provide, the choice of the best conditions is also in the hands of the customer, who can compare different offers. Another advantage is to have the money credited directly to the current account. The downside is that interest rates are generally higher since there is no form of control by the bank, nor a guarantee from the client. The latter aspect could at worst determine a refusal by the bank to grant the loan.

The purpose of the loan, on the other hand, is advantageous in terms of the speed of the practice and in the fact that interest rates are much cheaper , sometimes even zero. The guarantees required are, however, very binding : the loan must be guaranteed at times with the purchased good, which is mortgaged, so that in the event of insolvency this becomes the property of the financing institution. In addition, often, the good purchased with a loan does not have any list discount, sometimes practiced by the seller. Since the depreciation times are lower, the installment can be high and, consequently, less sustainable .

Before choosing the type of financing, you need to be aware of the guarantees you can offer, the costs and what degree of autonomy you want to keep.


Loan estimate of 10000 euros

Loan estimate of 10000 euros


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



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