You have a nice project in mind but not the finances to realize it? Do not panic, it is possible to use a consumer credit over several years. Find here all the information to obtain a consumer credit over 10 years to achieve your dreams without breaking the bank.
10-year consumption credit
- 10-year consumption credit: what you need to know
- Consumer credit, what is it?
- The different types of consumer credit
- The steps to obtain a 10-year consumer credit
- Can we anticipate the repayment of his credit?
Consumer credit, what is it?
A consumer credit is a loan granted to a borrower by a financial institution so that it can finance a project: new car, marriage, holidays, etc. The project must not be linked to the professional activity of the borrower and must not concern the purchase or construction of real estate. Governed by the code of consumption, the credit conso will not exceed the 75 000 euros. The borrower repays the sum made available to him in installments.
The different types of consumer credit
The first step before embarking is to know the different types of consumer credit to choose the one that best fits your project. Be aware that there are at least three types of consumer credit:
The personal loan is a loan that allows you to finance what you want without having to justify yourself. Attention, this credit must be repaid in five years maximum. It has the advantage of allowing the borrower to dispose of his money as he pleases and to help carry out important projects without having to dig into his savings. If you opt for this type of credit, be sure to compare financial institutions with each other. Indeed, the rate of this credit is freely fixed by the lender and the duration of the credit, the amount of the sums granted as well as the method of repayment vary from one bank to another.
If you have a clear idea of the project you want to finance (buying a car, installing a kitchen, etc.), you can opt for an assigned credit. Important feature of the credit affected, the credit and the sale are inseparable. This means that you only start repaying your credit once the property is delivered or received. If the sale does not take place, then the credit is terminated automatically. The total amount of this credit must be between 200 euros and 75,000 euros.
The revolving loan is financed by a bank and allows you to use the money made available without proof, as you see fit. After using all or part of your revolving credit, you repay monthly payments. Once the money is repaid, you have new usable capital. That’s why this type of credit is named renewable. The primary advantage of revolving credit is that it allows you to have quick access to your cash reserve.
The steps to obtain a 10-year consumer credit
To finance your project, it is essential to follow a few steps. The first will be to choose the type of credit most suited to his project. Next, it will be necessary to evaluate its borrowing capacity using a credit simulation. It will also be necessary to think about comparing the rates of consumer credit, as these can vary from one institution to another. Finally, it is important to learn about the regulations in force.
Subscribing a consumer credit is an act that involves the long term, especially if your goal is to obtain a consumption credit over 10 years. Before issuing an offer of credit to the borrower, the financial institution must submit a standardized pre-contractual form that includes all information relating to the proposed loan. This document indicates the identity of the lender, his address, the type of credit proposed, the amount, the duration, the total cost, the annual percentage rate of charge, the applicable law, etc. All this information is included in the consumer credit agreement. The borrower must also be informed that he has a 14-day cooling-off period before signing the 10-year consumption credit.
Can we anticipate the repayment of his credit?
If the contract stipulates it, it is quite possible to envisage partial or total prepayment of its consumer credit. However, if the partial refund exceeds 10,000 euros, compensation may be due. However, this allowance will be capped at 1% of the loan amount or 0.5% depending on whether it remains more or less than one year before the end of the contract.
Finally, in the opposite case, if financial difficulties arise in the life of the borrower, the borrower may have recourse to a magistrate to obtain a staggering of the monthly payments of his credit consumption over 10 years or a temporary relief of interests of the loan. If this grace period is capped at two years, it can relieve the borrower in case of temporary difficulties.