The mechanisms of personal loans.?
Whether buying a consumer good (car/motorcycle, furniture, household appliance, etc.) or a service (studies, marriage, travel, improvement, maintenance or repair work in your home, etc.) ), or to have extra cash to deal with the little incidents of life, the personal loan provides you with the funds you need at any time after the acceptance of your file by the credit company.
The amount, interest rate and repayment terms (duration, amount of monthly payments) are defined in the contract.
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According to the Lagarde law, the amount must be less than or equal to €75,000 for a period equal to or greater than three months without exceeding 5 years (7 years if the credit institution agrees). The lending organization must be an institution approved by the Banque de France, and whose name appears on the register of financial agents.It is also a fixed-rate loan , which depends on the amount borrowed, the duration of the loan, and the rate of wear and tear set by the Banque de France.The loan is repayable according to a schedule fixed in advance and on the basis of fixed installments. Each of these monthly payments includes a share of the loaned capital , to which interest is added .The personal loan is a consumer credit that can be affected or unaffected .
Although both are depreciable , at a fixed rate and constant monthly payment, they differ in whether or not they are allocated to a particular project: For an allocated credit, you must provide proof of purchase or allocation of funds: this is the case for car credit; For an unallocated credit, the project is only declarative , you can use the amount granted as you wish.If you have employee savings, there is a form of personal loan backed by your employee savings, and known as an “employee savings loan”.Likely to cover up to 100% of your employee savings, it is repayable by monthly payments made up of interest and insurance contributions. As for the capital, it is only reimbursed when your savings are released.What rate for your project?
What are the mandatory personal loan information?
Since the adoption of the Lagarde law on July 2, 2010, intended to improve the protection of borrowers, financial institutions are required to include various elements in their offer . None of these elements is revisable during the existence of the contract.Consumer contracts, including personal loans, are thus covered by the texts of the consumer code, aimed at strengthening consumer information and clarifying credit offers and credit advertising.In addition to the information in its body, each contract must include a box containing the main characteristics of the credit:The type of credit;The total amount borrowed;The duration of the loan contract;The conditions for the remittance of funds;
Notary fees;
For an allocated credit, a purchase order indicating the characteristics of the good of the service concerned and its cash price;
If you take out credit insurance with the lending institution, the latter must simultaneously give you the offer and the notice for the insurance.
The annual percentage rate of charge (APR) is subject to very strict specific rules. The methods of its calculation are detailed in the second decree published in the Official Journal of February 3, 2011.
Since May 1, 2011, the Consumer Code, in its article L 120-20, and the Scrivener law grant you a reflection period of 14 days (previously 7 days) during which you can renounce the loan, automatically canceling the contract. : this is the withdrawal period.
At the end of the withdrawal period, without notification of change on your part, you will receive in a single payment on your account the full amount you requested. The preliminary loan offer is signed and becomes the final loan contract.
What rate for your project?
