When you need to finance a personal project, the purchase of goods or a service, the ready for consumption may be a suitable solution. However, to obtain this type of credit, it is necessary to meet certain conditions. Thus, before embarking on this process, it is important to fully understand the requirements of banks and credit organizations. This article presents the main conditions for obtaining a consumer loan, as well as the elements to take into account to choose the most suitable offer for your situation.
Borrower eligibility
Before giving you a Consumer credit, banking establishments and credit organizations will first check your eligibility. For this, they will study several criteria.
professional situation
Your professional situation is a key element in obtaining a consumer loan. THE banks and credit organizations generally prefer to grant loans credits people with stable and long-term employment. If you are in CDIyour chances of obtaining a loan are higher than if you are on fixed-term, temporary or self-employed in SASU for example. However, some banks agree to lend to borrowers in a less stable professional situation, provided that the latter can prove regular and sufficient income to repay the loan.
Revenue
THE income of the borrower are a decisive criterion for obtaining a consumer loan. The higher your income, the larger the loan amount you will be able to get. Credit institutions will also study your debt ratio, that is to say the share of your income devoted to repaying your debts (real estate loans, current consumer loans, etc.). This rate must not exceed a certain threshold, generally set at 33%, for your loan application to be accepted.
Bank history
Your banking history also plays a role in granting a consumer loan. THE lending institutions are more inclined to grant credit to borrowers who do not have banking incidents (check bounces, unauthorized overdrafts, etc.) and who have good account management behavior. If you are registered in the File of Incidents of Reimbursement of Credits to Individuals (FICP), it will be very difficult, if not impossible, to obtain a consumer loan.
Consumer loan conditions
In addition to the borrower’s eligibility criteria, the terms of the consumer loan are also important to consider.
Amount and duration of the credit
The Rising consumer loan depends on your needs and your ability to repay. The minimum amount is usually set at €1,000, while the maximum amount can reach €75,000. There duration credit varies from 3 months to 7 years, depending on the amount borrowed and your repayment capacity.
Interest rate
The interest rate is an essential element to take into account when taking out a consumer loan. There are two types of rates: the fixed rate and the variable rate. The fixed rate remains unchanged for the duration of the loan, while the variable rate changes according to market conditions. The choice of rate depends on your borrowing profile and your risk aversion.
Borrower insurance
L’borrower insurance is often required by lenders when taking out a consumer loan. This insurance protects you in the event of inability to repay due to an accident, illness, death or loss of employment. It is important to carefully study the guarantees offered by the various borrower insurance as well as their cost, which is added to the monthly payments of the credit.
Compare consumer credit offers
In order to find the most suitable consumer loan for your situation, it is important to compare offers various banks and credit organizations. To do this, you can go directly to an agency, use an online comparator or call on a credit broker.
Study the reimbursement conditions
It is essential to carefully study the conditions of refund of Consumer credit. Some offers offer flexible repayment terms, with the possibility of modulating the monthly payments up or down, benefiting from deadline extensions or repaying the loan early without charge. These options can be particularly interesting for borrowers whose income and expenses are likely to vary.
Take additional costs into account
Finally, do not forget to take into account the additional costs related to consumer credit, such as application fees, management fees, prepayment penalties, etc. These fees may vary from institution to institution and affect the total cost of credit.
In summary, to obtain a consumer loan, it is imperative to meet the eligibility conditions of the borrowers and to take into account the conditions of the loan itself. Do not hesitate to compare the offers and carefully study the repayment conditions and additional costs to find the consumer credit that best suits your situation.
Types of consumer loans and their use
There are different types of consumer loans that you can consider depending on your needs and the nature of your project. Each of them has specific characteristics that you should know to make the best possible choice.
Personal loan
The Personal loan is an unallocated consumer credit, that is to say that it is not linked to the purchase of a specific good or service. It allows you to freely dispose of borrowed funds to finance various projects (works, purchase of equipment, travel, etc.). The interest rates of the personal loan are generally a little higher than those of an assigned credit, because of the greater flexibility offered to the borrower.
Assigned credit
The assigned credit is a consumer loan linked to the purchase of a specific good or service, such as a vehicle, household appliances or renovation work. The amount of the loan is directly linked to the cost of the good or service financed, and the funds are released directly to the seller or service provider. The main advantage of earmarked credit is that the interest rates are generally lower than those of an unearmarked personal loan.
Revolving credit
The revolving credit is a form of consumer credit that allows you to have a reserve of money, which can be used as and when you need it. It is often associated with a bank card which facilitates payments and cash withdrawals. The amount available is replenished as you repay the sums used, within the limit of the fixed ceiling. Revolving credit is generally more expensive than other forms of consumer credit in terms of interest rates, and it is important to master its use to avoid over-indebtedness.
The steps to obtain a consumer credit
Once you have determined the type of Consumer credit corresponding to your needs, you still have to follow the steps to obtain the loan.
Simulation and credit application
The first step is to make a simulation to determine the amount, duration and monthly payments of the loan based on your repayment capacity and your debt. You can then build your credit application file by providing the necessary supporting documents (identity document, proof of income, etc.) and by filling out a form.
Response from the lending institution
The lending establishment studies your file and informs you of its decision (acceptance or refusal of the credit). If accepted, he sends you a credit offer specifying the conditions of the loan (amount, duration, interest rate, etc.) and any additional costs.
Withdrawal period and release of funds
Once you have received the credit offer, you have a withdrawal period 14 calendar days to reconsider your commitment if you change your mind. After this period, if you accept the offer, the funds are released and paid into your bank account (for a personal loan) or directly to the seller or service provider (for an assigned credit).
Conclusion
Obtaining a Consumer credit requires a good knowledge of the eligibility conditions of borrowers, the characteristics of the different types of loans and the steps to obtain credit. It is essential to compare the offers of the different lending institutions and to take into account the repayment conditions and the ancillary costs to find the consumer credit best suited to your situation and your project. Do not hesitate to inquire and to surround yourself with advisers to accompany you in this process in order to carry out your project in the best conditions.
