Use of the personal loan
Unaffected, the personal loan is a consumer credit that can be used for the purchase of goods such as a car, a refrigerator or a guitar, or for a provision of services. The loan applicant is free to use the sum borrowed as he wishes, without constraints indicated on the contract, unlike his cousin, the credit affected.
How the personal loan works: Rate variability
The personal loan has variable rates depending on the lending institutions. Indeed, the rate for this type of credit is directly fixed by the bank or credit institution, depending on the current situation and the needs of the institution.
At this rate, can also be added a file fee , also variable depending on the type of lender. It is therefore important to compare the offers on the market in order to obtain the best loan terms.
Duration and amount of personal loan
In the operation of the personal loan, there are very few limits . Indeed, everything is freely fixed, as for the rate, by the lending institutions. Thus, the duration of the loan and the amount of money lent vary from one organization to another. It also depends on the solvency of the applicant and its current repayment capacity and over the medium and long term.
However, the amount borrowed can not exceed 75,000 euros.
Mandatory conditions for opening a personal loan
When opening a personal loan, several conditions must be met. Indeed, the lender must first inform the applicant about the credit settlement , before signing the contract.
The loan offer must indicate several essential information to be valid:
- The amount of the credit and its conditions,
- The duration of the credit and the number of refunds,
- The total amount due to the credit institution taking into account the interest,
- The amount of the fees,
- The annual percentage rate of charge,
- The possible penalties in case of late payment in the deadlines,
- The duration of the withdrawal period,
- The name and address of the borrower and lender.
Repayment of the personal loan
Once the credit has been accepted and the withdrawal period has passed, the repayment of the personal loan can begin. Indeed, the lender is not entitled to ask for his first monthly payments before the end of this period.