The consumer credit is a loan granted to individuals by banks or financial subsidiaries, with the aim of subsidizing acquisitions involving significant costs, such as completely restoring a car or the interior of a home.
The borrowing rate of the consumer credit is generally lower and the repayment period is shorter compared to other loans.
The different types of financing
In the financial market, there are about ten or so of which:
- the loan “affected” (with proof of purchase),
- the “unaffected” personal loan (without proof of purchase) ,
- the permanent credit (renewable) often linked to the use of the bank card and whose loaned money is renewed as and when repayments,
- online credit through computer sites,
- the leasing or leasing which consists in the payment of the commitments,
- the student loan insured by the State service (with a certificate of schooling in support), whose role is to grant the student a sum of money only to finance his higher education, such as business schools ,
- the free loan which is an ex gratia loan because its interest rate is null and void and equal to the amount requested. It allows to pay a purchase submitted immediately on the place of sale. The qualified personnel who propose it must assure the customer to pay the article at the most attractive price,
- the Mortgage Life Loan dissimilar from the sale in life and the current mortgage. It allows you to collect money to finance a private or individual concept. At the death of the debtor the bank office can recover his money by selling an apartment or a house put on bail at the time of the loan,
- Personal Microcredit, which is a loan designed for people who have been withdrawn from the usual banking system because of their much too low income or the proven weakness of their professional status.
The main purpose of the consumption credit is to lend a certain amount of money, hence the name of lender or creditor to an individual who requests it and who becomes the debtor. The amount accepted by the bank is between two hundred and seventy-five thousand Euros, with a monthly maturity of more than three months.
What are the essential clauses to respect
First of all, the financial advisor must give you the best information on the vagaries of a loan before signing it. He must highlight the particularities of the loan and must give you a manuscript containing separate information with the aim that you previously performed a comparative study of all the various banking proposals.
Then he must take into consideration:
- the financial and family situation of the debtor, what he receives per month and what he spends,
- the professional situation of the applicant, knowing that it is preferable to have an indefinite contract rather than a fixed-term contract. It is also recognized that civil servants, for example, are slightly more likely to have the desired consumption credit,
- its precise rate of indebtedness if the individual has taken out other loans. The rate set to date is between thirty and thirty-three percent that must not be exceeded to be sure that the credit file is accepted. Indeed, it is vital for the debtor that the new loan does not lead to a more disastrous position and this is the reason why the banking service is required to respect this regulatory rate. The financial advisor can also perform calculations for the loan rate depending on the city where the applicant lives. In fact, and as everyone knows, the cost of food or clothing can be more expensive sometimes, from one place to another, and therefore the banker can quite take note in his calculations while respecting the legislation In progress.
The demand for consumable credit can be done either by going directly to our quick simulator with immediate response . Then, it is necessary to constitute the file by supplying the official documents like the French identity card, the payslips, the notice of taxation …
Once the prior agreement is submitted to the borrower by the bank agent, the latter has seven days of reflection where he can cancel without having additional costs.
Beyond these seven days and after notification of his request, he becomes a debtor and must honor his monthly repayments until the end of his consumption credit . Once your decision is made and after signing your contract, a duplicate of it is given to you by the banking service.
As part of the consumer credit, it is quite possible to make a prepayment of the remaining amount to be paid without having to pay expenses related to the anticipation.
Insurance is provided for the consumer credit as for all other loans in general. You are not obliged to subscribe to it at all, but the applicant understands immediately that it is essential for the smooth running of the credit in question.
The insurance serves as a kind of absolute protection throughout the credit period, both for the debtor and for his entire family. For that reason, it would be very detrimental not to include it in its consumer credit application.