A consumer credit is intended to meet borrowers’ financing and cash requirements. It can be used to carry out any project whatsoever for the purchase of a vehicle, to finance a wedding or to go on holiday. A consumer loan can be linked to a purchase or not, it can also be renewable or lease with option to buy.
What are the particularities of a consumer credit?
A consumer loan is a form of loan that a financial institution grants to a borrower to carry out a personal project. The amount borrowed must be repaid periodically by the individual for a specified period of time with interest. A consumer loan can be used to finance a particular project or to meet specific needs. This type of loan is classified into two categories:
– The assigned loan
– The unallocated loan
As the name implies, the loan is tied to a particular purchase. In other words, it can finance the purchase of a particular good or service, such as the renovation of a house or a wedding, and can not be used for other reasons. Also, the sale and the credit are linked and if the sale is canceled, the credit is also canceled and vice versa. It can be concluded at the point of sale or at the bank if the seller is not related to a financial institution.
But how does it work?
As the sales contract and the credit are linked, the loan is not granted until the purchase takes place. Similarly, the buyer can not finalize a purchase until he has taken out a loan. In addition, repayment of the loan begins only when the property is delivered. Otherwise, the credit is canceled.
Personal or unallocated loan
This is a short-term credit intended to meet a need for personal cash. Its advantage is that it is not tied to any particular purchase. The borrower can spend the borrowed money at will without any proof. This type of loan is also called credit without proof. The refund is made on the basis of monthly installments and fixed rates. Unrestricted credit is more expensive than a conventional credit, but it is easy to obtain.
What to do in case of withdrawal?
The advantage of a consumer credit is that it has a withdrawal period. With this right, the borrower can retract within 14 days of signing the offer. The borrowed capital is therefore paid only on the 15th day after the request if no opposition takes place. In case of emergency, it is possible to request the release of the capital from the 7th day. In case of withdrawal, the form and the contract must be sent to the financial institution. The request is suspended upon receipt of the files.
To avoid any misunderstanding and withdrawal, it is advisable to choose the consumer credit that best suits your needs. For this, you can compare the offers via an online credit comparison tool. Thanks to this tool, it is no longer necessary to go around all the banks. Just fill out a form to find the best deal.