Ikea financing: is it worthwhile to buy furniture in installments?
Furniture can be purchased in installments, even for small amounts, thanks to offers that major brands such as Mondo Convenienza and Ikea offer through financing agreements with major financial companies or banks. In particular it is possible to obtain Ikea loans both for private individuals who want to furnish an environment or the whole house, and for the self-employed in the business section (it is often foreseen in the case of private individuals a special treatment for young people).
Not only has 2017 been a year characterized by numerous promotions that have also involved the area of financing, seeing often those present at zero interest, such as the latest initiative that will end only in November 2017, now forwarded (from Ikea official website).
Beyond the rates applied, which periodically undergo changes by virtue of the agreement that Ikea has with Astro Finance, acting as an intermediary for the placement of loans, we see what are the requirements that are necessary and the documents that must be brought to obtain financing that you want.
There is first a final consideration to be made: Ikea loans can be obtained not only by going shopping in one of the shops (in this case the tool available on the Ikea website is useful, allowing you to identify the nearest store and active promo at that point of sale). They are often extended to online purchases even if here they may be subject to further restrictions. Often they are made accessible only for the furnishing of some rooms, while in the sales points it is normally the amount that you want to pay in installments which establishes whether or not you can advance with the finalized loan request.
The types of loan available
Ikea loans for years have been granted through Astro Finance. So whether they require the shop or through the web, the decision on the actual granting of the requested sum will then be left to the Astro Finance company. The procedures are also standard, and if a Astro Finance online loan has already been requested, you will be faced with an already known procedure, namely:
- choose the furniture to be included in the virtual cart;
- proceed to purchase;
- select payment in installments by financing;
- redirection in the Astro Finance page.
At this point it will be necessary to follow the guided procedure for completing the request and uploading the documents, making the transfer, proceeding to the digital signature and waiting for the financial response.
Types of loans available
In general, Ikea loans are divided into three groups, which lead to changes in the conditions relating above all to the amounts that can be paid in installments and to the documents needed to be shown. These three groups are:
- private : it concerns all those who purchase furniture for the home regardless of the income received (so they are accessible for permanent or temporary employees, professionals, the self-employed, etc.);
- young people : this is a sub-category of the one intended for private individuals, which offers young people under the age of 34 a series of benefits. The purchase is always for the home and not for the work done;
- autonomous : purchases made to furnish offices, shops, etc.
Loans for private individuals
Who has a demonstrable income and wants to divide the cost of a home furnishing, which falls within a predefined price range, can proceed with the request for Ikea loans. As a generally financeable price range it goes from 300 USD as the minimum to 10 thousand USD as the maximum amount, but changes can occur (data from Ikea official website – date 10/10/2017).
The conditions applied also periodically undergo changes (such as the aforementioned zero-rate promotions). Also for this last aspect the promotions have revealed different situations, with in some cases a real zero rate (Tan, Taeg and accessory costs equal to zero), while in other cases a Tan equal to zero but a Taeg of a few percentage points. This type of information, precisely because it is subject to agreements and promotions, must be evaluated at the site (or on the site) when it is desired to request funding.
As necessary documents are required:
- identity document not expired (valid identity card, driving license, firearms pass, passport or ministerial card);
- tax code or health card. Alternatively, the electronic identity card or the electronic ministerial card;
- for non-EU foreign citizens only a residence permit, while for EU citizens an identity card is sufficient, or the contextual residence certificate, the certificate of residence or even a bill that is at most three months before also registered to a family member. An application with an expired residence permit can also be evaluated, but for which it can be demonstrated that there has already been a renewal;
- income document: last pay slip, compensation sheet, Model for the self-employed, or Model OBIS / 01M sent by the INPS, pension slip of other institutions or Cud or 730 for pensioners;
- Iban of the current account where to debit the installment payment reduction.
For requests for financing of self-employed workers
In addition to the privacy module, which is the same for all types of companies, stand-alone companies, companies are also required:
- the Identity Document and the Tax Code of the parties that have the powers of signature;
- in the case of associated studies only, the deed of incorporation must be shown;
- for sole proprietorships, the VAT registration document is required;
- for all types the last year’s Single Model is required, and for all (except professionals and associated firms) also the Irap model. In addition to the models mentioned above, presentation receipts must also be shown;
- for companies only, both of people and of capitals, the financial statements must also be provided (compared with the supplementary note for joint-stock companies).
Youth Formula: from 18 to 34 years old
To make a request for funding easier for those between the ages of 18 and 34, even if in possession of a fixed-term employment contract, Ikea provides the possibility called Formula Giovani. Generally the maximum amount that can be financed and the duration of the loan tend to decrease compared to the conditions addressed to the broader category of private individuals.
The maximum sum envisaged is 5 thousand USD while the maximum repayment duration of 30 months (as long as the residual duration of the contract is longer than the maturity of the loan). The necessary documents are the same as those provided for private individuals, with the same differences depending on whether they are Italian national workers, EU foreign citizens and non-EU foreign citizens (data from Ikea official website – date 10/10/2017).
The promotion at zero rate
If giving opinions in certain contexts is complicated, for more objective questions, such as when it comes to real zero-interest loans, the judgment can only be positive. In this way it is possible to take advantage of the same purchase price but paying all in installments. The promotion of the autumn of 2017, ending November 26th, presents precisely these characteristics as can also be seen by using the useful Astro Finance simulator directly accessible from the Ikea website (the amount financed is up to 10 thousand USD). For example, using the above simulator we see that:
- 10 thousand USD to be repaid in 20 installments lead to a monthly payment of 500 USD
- 1000 USD to be repaid in 20 installments, with the amount of each installment 50 USD
Warning! Since these are promotions, they are subject to ongoing agreements, so you need to do simulations and request quotes from time to time, to make sure about the actual promos and conditions. (data from Ikea official website – date 10/10/2017)
In some periods, Ikea loans were accompanied by initiatives to facilitate Ikea family or business card holders. Before applying for funding it is a good idea to check whether there are any initiatives of this type in progress, and possibly request the card, given that it is issued free of charge.