Buy a new or used car, do some work, change the kitchen … a personal loan can help finance projects under good conditions.
Also called consumer credit, it is a financing solution, which is granted to you, after analysis of your financial situation and your ability to repay.
What you should know before purchasing consumer credit.
What is a personal loan?
A personal loan is usually reserved for projects of some importance: car, works, equipment of the house, travel, studies of the children, …
It is not assigned to the acquisition of a defined object. No proof of use will be required.
The rate of the personal credit is fixed and the monthly repayments of the maturities are constant.
The unblocking of the amount of the credit is made at one time, to the credit of the account you have designated. The first reimbursement occurs approximately 1 month after this release. The 1st monthly payment may be different from the following if this 1st period is less than or greater than 1 month.
Since your credit is not allocated to a specific purchase, you can not challenge the personal loan if you change your mind for your purchase. In this case, early repayment is the best way to pay the minimum interest.
What formalities to obtain a personal loan?
Before you make a personal loan offer, the bank asks you for the following information:
proof of income: tax notice for employees and pensioners; annual tax returns for the self-employed, artisans, traders, and farmers;
information about your personal situation: identity, address, …;
the situation of your co-borrower where applicable;
proof of your financial expenses, other credits in progress …
Before you decide, you can make a personal loan simulation: you choose the amount you want to borrow then:
the monthly repayment to know the duration;
ie the duration to know the monthly repayment.
What must an offer of credit agreement entail?
When your personal loan file, with its supporting documents, is complete, the bank sends you an offer of credit agreement, valid for at least 15 days. This offer must include the following information:
the identity and address of the lender and the borrower,
the type of credit (earmarked credit, personal, renewable …),
the amount borrowed,
the conditions for making the funds available,
the duration of the credit,
the amount, the number and the periodicity of the maturities,
the total amount owed by the borrower,
the APR, the annual percentage rate of charge,
the identity and address of any sureties,
the existence of the right of withdrawal,
the terms and conditions for early repayment and termination,
the address of the Autorité de Contrôle Prudentiel et de Resolution (ACPR) and the administrative authority responsible for competition and consumer affairs.
Do not forget: after signing the offer, you have a period of 14 days to assert your right of withdrawal and forfeit the credit.
The APR represents, as an annual percentage, all costs related to obtaining a credit, ie the borrowing rate (the credit rate), any administrative fees and the cost insurance when mandatory. It is the indicator that makes it possible to easily compare several propositions between them.
The borrower insurance called ADI, Death Insurance Disability, is not mandatory for consumer loans. Yet, it is strongly recommended to stop any unexpected during the term of the credit: illness, accident …
Focus on a valuable advantage: flexibility.
A personal loan must adapt to your situation, offering you a certain flexibility in repayments, the Desirio project credit is a good example:
a postponement of repayment of up to 3 months after release of the credit; check whether capital or capital + interest
the possible choice between 3 monthly due dates: 10, 20 or 30 of each month;
from the 7th month of repayment, the possibility of suspending 1 to 3 installments per year (1);
from the 7th month onwards, possibility of increasing (1) or reducing the repayment period;
partial early repayment, with choice to reduce depending on the amount of the monthly installments or the duration of repayment;
total prepayment (2).
(1) Subject to the terms and conditions set forth in the General Conditions and subject to acceptance by Orange Bank.
(2) Subject to the terms and conditions