The terms granted for the repayment of a loan can range from a minimum of 6 months to a maximum of 10 years. The 60-month loans are among the most popular as accessibility, above all thanks to a fairly close bond that they maintained for a long period with the assignment of the fifth. In fact, 2005 and subsequent amendments are due to the introduction of the possibility of choosing any duration for the assignment of the fifth, as long as between 24 and 120 installments.
In terms of personal loans, the duration of 5 years (or 60 months) is usually available, except for those forms of loan designed to last a short time because they are linked to reduced amounts. Even for finalized loans, the possibility of being able to choose a 60-installment plan is often at the center of interesting offers, especially in some sectors such as the car and furniture sectors, considering the rather high amounts that must be requested to purchase these products.
Economic characteristics and conditions
For 60-month loans, a distinction must be made in two sectors: loan assignment loans and other personal and finalized loans. Within the latter category we find those connected to the amount requested and those released. For these two types, the differences on interest, on the amount of the installment and on the rates applied can be considerable.
5-year financing: better the transfer or a ‘traditional’ loan?
First let’s go to see the peculiarities that characterize a transfer of the fifth to 60 months. The first is related to the possibility of renewal before the contract expires. Unlike general personal loans, when you want to renew the assignment of the fifth, you must have reached a minimum repayment percentage equal to 40% of the remaining term. However, if a transfer of the fifth with a maximum duration of not more than 60 months has been made and you want to make a renewal to pass to a ten-year period, you will not have to respect any refund quota already made but it can be requested at any time.
Furthermore, even today, for the long-term loans ex Inpdap to finance some specific needs (such as car purchase, birth of a child, wedding, funeral, ceremony, etc.), the 60-month version will have to be chosen for the 10-month version. years is related to other types of motivation.
As for the other personal and finalized loans, this time horizon allows to identify many alternatives, present both in the traditional offer and in the online one. Obviously for the latter it becomes much easier to make a calculation or a simulation, to decide whether to move to a quote and possibly to the actual loan request.
However, we would like to remind you that the estimate is not binding in any way and does not lead to a notification in the system of a pending loan request. Not only that, it represents an indispensable step to fully understand the convenience of one loan compared to another and to allow you to carefully evaluate the sustainability of the installment in light of all the commitments that are already in progress.
Loan Spin Lender, Across Lender and Lite Lender Company
Spin Lender and Lite Lender Company offer a service to guarantee a quick online calculation but with different conditions not only on the side of the rates applied. If Spin Lender allows to release the amount required by the duration, Lite Lender Company instead maintains precisely this type of bond (for example for low sums it will be difficult to obtain an amortization plan of the maximum expected duration or the 120 installments). However, the 60 installments will almost always be available for low, medium and high amounts.
We consider a request of 20 thousand USD to be returned in 60 months.
Based on these parameters, with the calculation made on 26-09-2017 on the official Lite Lender Company website, we will have an installment of $ 409.90 with a 8.45% Tan and a 8.79% Taeg.
If we go to consider the offer of Spin Lender instead we will find ourselves in a situation with an installment of 403 USD with Tan 6.91% and Taeg 8.30% (Source: Spin Lender official website – survey date 30/09/2017)
A simulation of this type allows us to understand the weight of ancillary costs given the gap between Tan and Taeg.
The second example takes as reference a sum of 10 thousand USD to be returned in 60 months. With these conditions we also consider Across Lender.
- Spin Lender: installment from 192.10 USD a Tan 4.92% and Taeg 6.45% (Source: Spin Lender official website – survey date 30/09/2017)
- Lite Lender Company: installment 194.50 USD a Tan 6.25% and taeg 6.43% (Source: Lite Lender Company official site – survey date 30/09/2017)
- Across Lender: installment of 198.01 USD, Tan 7% and Taeg 7.29%. (Source: Across Lender official website – survey date 30/09/2017)
It is therefore evident that for an intermediate duration, as in the case of 60 installments, the differences in the economic conditions on the rates applied become significant with the decrease of the amount, reaching almost 2% less if the requested sum is halved.
Beyond the calculation that can be conditioned by the conditions and rates of the moment, these differences must be carefully assessed, pushing to request the “right” sum (that is the one that is actually needed) and not to extend the duration of the amortization plan more than necessary
The choice that can be encountered when looking for loans to be repaid in 60 installments is wide, going through almost every type of loan, from the assignment of the fifth to the loan aimed at buying a car, even passing through a mortgage. On the other hand, many more evaluations must be made starting from the calculation and / or simulation phase, recommended even before arriving at the actual request for a quote.
Unfortunately, this possibility is not offered by all banks and all financial companies. The problem can be solved by using independent calculators, while paying attention to the rate policy that that company applies. As regards sustainability, on the other hand, the amount of the installment must always be assessed solely on the basis of one’s economic availability, except in the case of the assignment of the fifth where the installment and income ratio by law is tied to the amount of the net income received in average per month.