Different online loans in Italy - all in one place

Online loans in Italy - everything you need to know

Loans are, in their simplest form, an agreement between a lender and a borrower about the loan terms. The lender has the funds available and lends them under specific criteria, often through a particular type of interest rate and some additional fees. This is considered the payment for borrowing the money, and it is paid back monthly, quarterly, biannually, or annually by the one who borrowed the money.

This agreement is often offered by banks to consumers under a specific contract since banks have the funds available to them.

So, normally, it would be common practice to directly consult a local bank to sign up for a loan. Still, as online banking has become increasingly popular, several lenders offer convenient online loans. While most traditional banks require a thorough investigation of your financial standpoint regarding monthly income, budgets, last year’s spending, and much more, online banks only require minimum information, which makes them more accessible.

Why choose Moneezy?

Moneezy is a top loan comparison platform, designed to empower borrowers in a bank-dominated market. With over 10 years of experience and operations in 17 countries, Moneezy has facilitated more than 950,000 loans, totaling over €415 million since 2018.

Backed by a team of 20+ experts, Moneezy provides access to a wide range of lenders, allowing customers to easily compare personalized loan offers. This transparency simplifies the loan process, helping borrowers make informed decisions that prioritize their financial well-being.

Moneezy also offers in-depth financial insights through articles and blogs, focusing on personal finance, investments, and more. Driven by values like harmony, work-life balance, and social responsibility, Moneezy ensures a user-centered approach, making borrowing simple, transparent, and reliable.

Essential online loan requirements for borrowing in Italy

To apply for a loan, you must fulfil the following requirements:

• Be over 18 years old and under 70 years old. Some banks might have loans available to you even if you are over 70.

• Have your place of residence in Italy. So, it is possible to apply for loans in Italy for foreigners. However, some financial institutions, in connection with bigger loans, might as well require Italian citizenship.

• Have a stable income source. Banks offer loans based on getting back the money after the runtime has passed. If you have no income source, you cannot pay back your loan with the added interest, which in turn means you will not be able to take a loan in the first place.

• Have an Italian bank account.

Types of loans in Italy

Here is an overview of the loans offered by online lenders in Italy, which you can also find right here on Moneezy:

Classic online loans in Italy

Personal Loans (Prestiti Personali), Financing (Finanziamenti), and Employee Loans (Cessione del Quinto) are the three different loans that belong to the category of consumer loans and follow the classic loan structure in Italy. You apply for an online loan of a certain amount, as well as decide on a runtime for paying it back with the added interest and fees. The different terms are mainly used to distinguish between the use you can make of loans.

All these kinds of loans can be requested, either for small or large amounts. Among these, instant loans in Italy are very popular and they refer to smaller loans, also known as Piccoli Prestiti, which can be used for an unexpected expense that has come through, an emergency that must be taken care of, or to invest in an item you've wanted for years. The bigger loans are more suited towards initiating start-ups, loans for property or vehicles, as well as energy optimization or renovations in your home. The possibilities are endless, which is why the consumer loan is the most common.

Special loans

Consolidation Loans (Consolidamento debiti) is a term for combining several smaller loans into one big online loan, to avoid paying huge interest for several loans at a time. These are especially useful when consumers have taken several small loans and are now burdened with several payment dates and different interest rates.

Promissory Note or Bill of Exchange Loans (Prestiti Cambializzati) are a type of personal loan offered in Italy particularly suited to borrowers who have previously been denied credit. Through this loan format, financial institutions may agree to disburse funds despite prior rejections, securing repayment with a promissory note (or bill of exchange). This note serves as a formal pledge to pay a specified sum of money either at a future date or upon demand, thereby offering an additional layer of security for the lender.

Lastly, Overdraft (Fido bancario) allows you to exceed the amount of money in your account by a set amount each month, without paying the normal fees. This is especially useful when conducting a big project, for example, a house renovation, where unexpected expenses can come out of nowhere. The loan is only active if your account experiences an overdraft and the loan will cover the rest of your expenses. Once next month’s paycheck comes in, the loan is automatically paid off with a small interest rate.

Pros and Cons of Online Loans

If you are not realistic and thorough in your financial pianification in connection with your loans, you can end up having trouble paying them back over time. Furthermore, if you apply for a loan to spend on devaluating assets such as technology, fashion, and trends, you are not looking at investments, but rather at reckless spending, something to avoid using loans for. Being mindful and intentional about your loans is the most important aspect. But if you keep these risks in mind when applying for a loan, they can be a great source for realize projects.