Consumer credit makes it possible to carry out personal projects such as work or vacations and helps finance various consumer goods such as computer equipment, a car, household appliances or furniture. This solution is ideal for financing all needs and desires.
For which projects?
Consumer credit is therefore intended to finance all personal projects that do not concern the real estate sector. It can therefore be used in two cases: to help buy consumer goods or to quickly take advantage of cash. The minimum loan amount is € 200. As for the maximum amount, it is € 75,000. The repayment period is greater than 3 months. Different types of credits exist.
The different types of credits
The personal loan
The personal loan is a fixed rate loan which allows one or more projects to be financed. Cofidis does not ask for any justification. Unlike a mortgage or affected personal loan, there is no need to specify what the money will be used for. The funds can be intended for the purchase of a motorcycle, for carrying out work, changing furniture, moving, getting married, etc. The credit can therefore be used to purchase consumer goods or any other service and is not reserved for a single purchase or a single service. It is the lending institution that sets the amount of credit authorized, the repayment period as well as the rate, which will remain the same throughout the repayment period.
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The allocated credit is, for its part, intended for a specific purchase or in particular for a specific service. On the contract, it is specified which service or which good will be financed thanks to the credit. The affected credit can be taken out directly at the point of sale or with a lending institution. If the credit request is not accepted or the sale does not take place, the sales contract or service is simply canceled.
Revolving credit differs from other types of credit because it allows great freedom with regard to the use of capital and the terms of repayment. It is possible to use all the available credit amount, or only a part, to make purchases, in one or more times.
The available credit is replenished with the regular repayments that are made. Credit interest is calculated on the amount used and not on the amount available. As specified on the Government’s website, « the law imposes maximum repayment periods which cannot be exceeded ». They vary according to the amount of the loan: 36 months if it is an amount less than or equal to € 3,000 and 60 months if the amount is greater than this amount. The term of the revolving credit is one year and renewable each year. Every three years, the lending institution must verify that the borrower is still able to repay the credit. This credit therefore has the advantage of being very flexible.
Personal microcredit is reserved for people who are excluded from the banking system because of their low income or a professional situation considered fragile. But it can also be granted to people who are not in one of these situations. For it to be granted, the borrower must have a personal project to achieve in order to improve his social or professional situation.
This credit can therefore be granted to purchase goods or to take advantage of services. For example, the purchase of computer equipment essential for certain professional activities or the financing of a driving license or training. The amount granted is adapted to the borrower’s income and is generally between € 300 and € 5,000. The term of the loan varies from six months to four years. Professional microcredit is only granted to facilitate the creation or development of a professional activity.
The loan request
In all cases, the borrower must first apply for a loan. He must specify his contact details, the type of credit envisaged, the amount he wishes to borrow, the duration of the loan, the amount of monthly payments, the fixed rate as well as any insurance. The choice of credit will depend in particular on the project (s) envisaged, the amount desired and the financial situation of the borrower. The answer is obtained within several days.
It is quite possible to take out a loan online. This offers several advantages, in particular a saving of time. The borrower no longer needs to go to a banking establishment. Online credit can be applied for at any time of the day, even on weekends. Thanks to a simulation, it will be possible to know in just a few minutes whether the credit will be accepted or not and what the different terms will be. Finally, even in the context of an online subscription, advisers are available, by email or by phone, to answer borrowers’ questions.
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