Personal loan: the terms of this consumer credit

Personal loan: the terms of this consumer credit

With a possible extension of the coronavirus pandemic before the summer of 2022, there are many projects. Whatever it is (a wedding, a big trip or a family vacation), a personal loan can help finance it.

Unrestricted personal or consumer loan

A personal loan allows you to finance expenses or meet the need for cash. In other words, it is consumer credit. variable amount, From 200 euros, it can go up to 75,000 euros. Unlike earmarked consumer credit, personal loan is unearmarked, i.e., it is not intended for the purchase of a particular commodity and there is no need to provide proof of the use of borrowed funds. Thus, the borrower has the right to use the funds to finance the required project: a trip, the purchase of high-tech equipment, etc. It can also be used to solve a one-time cash flow problem.

How do you get a personal loan?

Submit a financing application to a credit or banking institution. Depending on the amount borrowed, the repayment term can be equal to or more than three months. Of course, the longer the repayment period, the higher the price.

Fixed rate personal loan It is freely decided by the lender without being usurious. That is, it should not exceed the rate of wear. This erosion rate is published quarterly in the Official Gazette. Additional costs, which vary according to credit institutions, can affect the cost of the operation.

Before granting financing, the credit agency analyzes the borrower’s profile and financial situation. Study the solvency of the borrower and his ability to repay Depending on the supporting documents submitted by the individual. Thus, it can determine the most relevant financing methods. He then created a final personal credit offer including the effective annual rate (APR), with a list of additional costs plus compensation to be paid in case of late payment.

Personal loan, repayment terms

Once the personal loan contract is signed, the individual borrower gets a withdrawal period. He can actually change his mind about Within 14 calendar days. Personal loan repayment begins after the withdrawal period ends.

Partial or full early repayment can be made at any time. However, the lender may claim compensation, subject to the terms. It should be noted that the amount of such compensation cannot be greater than the interest that the borrower would have initially paid. Before any credit application, it is best to run a personal loan simulation. Online tools allow you to assess your ability to borrow for free and without obligation.

Published February 09, 2022 © Credit Guide

🎉 Find your consumer loan at the best price!

Leave a Comment

Your email address will not be published. Required fields are marked *