Do you have one or more projects and are you planning to take out a consumer loan? Many households buy a good or service on credit via a consumer loan, without taking the time to look in detail at the different offers in this area.
To benefit from an adapted solution that best meets your financing needs, nothing like performing a consumer credit simulation. Lender allows you to do it directly online, in one simple step.
Definition of consumer credit
A consumer credit is a financial product granted to individuals by a bank or by a credit institution. This type of loan allows households to settle their personal projects, whether it be the purchase of goods (excluding real estate) or the financing of services.
This can therefore concern the purchase of a car, renovation work, a trip around the world, the purchase of household appliances, or any other project carried out on a personal basis. Lender offers you an innovative consumer loan, since it works on the following principle: the funds used to finance the loans are collected from professional investors, then redistributed in the form of credit to individual borrowers.
Amount and duration of a consumer credit
The amount of consumer loans granted by Younited is between 1,000 and 50,000 euros. The minimum repayment period is 6 months. As for the maximum duration, it is 84 months, or 7 years. The duration is mainly conditioned by the amount borrowed. In this sense, the simulation of consumer credit is very useful for the borrower.
Based on his financial capacity, it allows him to know the monthly payments he will have to pay, with the related interest rate, but also to accurately determine the total cost of the loan.
Indeed, each monthly payment includes a part of the principal repaid on the one hand, and the interest due on the other hand. This is known as the overall annual effective rate (APR). Unlike the nominal rate, this includes all of the costs relating to the credit, namely:
– Bank interest;
– Application fees (costs applied by the bank or credit institution, or broker’s commission);
– Guarantee costs;
– The cost of insurance (optional);
– All other fees charged for obtaining the loan.
The APRC is therefore a determining factor, which should serve as a basis for comparing the offers. Also note that the insurance rate, if you subscribe, will be included in the monthly payments.
Forms of consumer credit
There are many forms of consumer credit. Among the most commonly subscribed are:
– Personal loan : the borrower is free to use the amount of the credit as he wishes, without proof.
– Affected credit : conversely, this type of consumer credit must be used to finance a fixed asset or a specific service. The future buyer can then, for example, take out a car loan, a work loan, a travel loan, or even a wedding loan.
Good to know: the benefits of restricted credit
An assigned credit is automatically canceled if the sale does ultimately take place. Likewise, the contract of sale is considered null and void if the loan is not accepted by the bank or the credit institution.
– Revolving or revolving credit : this form of consumer credit consists in making available to the borrower a sum of money, which he can use and replenish as he sees fit.
If the first two types of consumer loans have a fixed rate, this is not the case with revolving credit. This makes it a particularly dangerous financial product. It is for this reason that you will not find it in offers. Buy on credit, yes, but without risking your budget!