Sat. Jul 27th, 2024
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Do you want to redo your interior? Buy a scooter? To go on holiday ? Or put solar panels on the roof of your house?

The personal loan can be the solution to make your desires come true since it adapts to all projects.

What are the characteristics of the personal loan? How does it work ? What information must the lending institution communicate to you?

The personal loan is a consumer loan  that can be used to finance the project of your choice , unlike the assigned loan : purchase of a car, financing of leisure activities, travel, carrying out work, need for one-time cash, etc. .

You spend the sum lent as you see fit, without having to bring proof of its use to the lending institution.

You can take out a personal loan from banks, certain insurance companies, through a brokerage firm, a supermarket, or from an online financial institution.

How the personal loan works

With a personal loan, you can borrow up to €75,000. Its repayment period is at least 3 months. The maximum duration, meanwhile, is around 7 years, but this may vary depending on the lenders and your repayment capacity.

The lending institution can freely set the rate of the personal loan granted, without however exceeding the rate of wear. There are thus rates ranging from 2.5 to 10%, depending on the offers.

Remember to ask if any application fees are added to the cost of credit.

The conditions for obtaining the loan differ from one institution to another:

A  study of your solvency  will be made to judge your ability to repay: evaluation of your sources of income, debt ratio, financial behavior, etc.

Even if borrower insurance is not a legal obligation, it is still strongly recommended. In addition, the lending institution may require the  subscription to insurance  to grant you credit. The choice of insurance is totally free. You are not obliged to take the insurance offered by the lender.

Personal loan repayment

Until you have signed the loan agreement, you cannot be asked to start making monthly payments .

Reimbursement will only begin after compliance with a period of 14 calendar days of reflection after the signature of the credit offer, and the entry into possession of the sums paid.

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