Are you looking for the best way to finance purchases you have always wanted, or do you want to cover your daily expenses? Consumer credit is definitely what you need. This type of credit offers you freedom in your acquisitions, but, it should be noted that certain points must be considered when you want to subscribe to this type of loan.
Consumer credit, functionality
Consumer loans are non-real estate loans with a sum of between 200 and 75,000 dollars. The repayment term of the loan must be more than 3 months. In terms of subscription conditions, this is often stipulated when signing the loan contract.
First, there is variable rate revolving credit, which is often used for short-term borrowing. This is used most of the time to build a fund which will be reimbursed as the borrower pays his monthly payments. Then you can find the fixed rate credit which is often appreciated for a slightly longer repayment term.
Aside from that, you can also choose between the assigned personal credit, intended for the purchase of a well-defined property and requiring proof to be presented to your bank; as well as unallocated personal credit to give you more freedom in its use. Note that in the case where the sale is canceled, the current credit is also canceled for the case of the consumer credit affected.
The advantages of this type of credit
Consumer credit is attracting more and more households but also individuals who wish to constitute a fund for a personal project. Thanks to the funds granted by the bank or the financial institution, the borrower will not risk incurring expenses not proportional to his budget.
He also has a right of withdrawal of 14 days, in the event that the loan does not suit him or simply that he has changed his mind. This right gives him the opportunity to reconsider his purchasing decisions on the days indicated. If before the Lagarde law of 2011, the right of withdrawal was one week, today, this is extended by one week more.
The borrower will have the freedom to choose the borrowing rate that suits him, even if for purchases of more than 1,000 dollars, the conventional loan will be at a fixed rate. On the other hand, for purchases less than this amount, the borrower is free to opt for a fixed rate or a variable rate.
And, as consumer credit is one of the so-called legal loans, the bank must consult the FICP file before giving its approval for the granting of the loan. This avoids the problem of default or insolvency of the borrower in the short or long term.
For the bank or the financial institution, this operation constitutes a non-negligible profit because the interest rates charged are sometimes higher compared to the market rate. And from an economic point of view, growth is assured because consumer credit encourages people to spend and consume more.