A consumer credit is a loan intended for the purchase of current goods and equipment, for non-professional use. The capital borrowed is therefore generally lower than for a mortgage.
To benefit from the regulations on consumption credits, the loan must be of an amount less than or equal to € 75,000 and a duration greater than 3 months.
Its duration does not generally exceed 7 to 8 years.
Although obtaining a consumer credit is easier than a home loan, it is still normally subject to the 33% debt rule, although many institutions exceed this rate when income permits.
An advance credit offer must be given to you and include the following documents:
- The name and address of the lender;
- Your name and address (possibly those of the deposit);
- The good or service purchased and its cash price;
- The conditions of the loan, that is to say: the amount, the interest rate, the duration, the number and the amount of the installments (monthly payments), the total cost.
Simulation of your credit consumption using our calculators
- What is your borrowing capacity?
- If you know the monthly payment, which loan can you claim?
- How much will your loan cost you?
A credit offer is valid for 15 days from the date of writing. From the moment you sign the loan offer, you have 7 days to retract .
For this you just need to return the withdrawal slip. If the 7th day is a Saturday, a Sunday or a holiday, you can still send your mail on Monday or the day after the holiday.
Sending must be by registered mail with acknowledgment of receipt.
The LAGARDE reform
The LAGARDE reform on consumer credit aims primarily to improve information to borrowers. With regard to revolving or permanent loans, the lending organization is now obliged to propose an alternative with a depreciable loan .
A preliminary offer of loan is presented in these terms.
Auto loan offer at the Annual Fixed Annual Effective Rate (APR) of 6.22% with optional insurance of € 3 per month, for a borrowed amount of € 12,000 over a 36-month repayment period and a monthly payment of 362, € 35 excluding insurance, for a total cost of € 1152.63 including € 108 insurance .
It is also interesting to know the evolution of the value of the good that one acquires and to verify that its possible resale is enough to pay the consumer credit.
The different consumer credits
Bank offers and other comparators offer immediate credit without proof, often available online in 24 hours. But whether you want to satisfy a compulsive purchase or that your financial situation requires urgent action, follow our advice to avoid the many pitfalls that await you.
- All about immediate credit
Borrow between individuals
Until now the offers of loans between individuals presented a fairly significant risk in view of the many traps set by crooks of all kinds, facilitated by the arrival of the Internet. Recently with the arrival of Prêt-d’Union, the loan between individuals has secured. It is the only body authorized by the Prudential Supervisory Authority. The praise given by the financial press and the solid shareholders (Crédit Mutuel, AG2R la Mondiale …) make it a serious interlocutor.