Under its somewhat technical name, the personal loan is quite simply a form of consumer loan in the same way as revolving credit and affected credit. His particuliarity ? Flexibility. This financing solution is adaptable to any type of project.
We are answering any additional questions you may have regarding this type of credit. The personal loan will no longer have any secrets for you.
Who is the personal loan for?
Like all consumer loans, the personal loan is aimed exclusively at individuals. Its accessibility makes it the consumer credit with the largest audience: conditions related to age and income, just like medical selection, are indeed less drastic. For example, it is quite possible for those over 60 to benefit from a personal loan to finance their travel plans, for example.
The personal loan, how does it work?
The personal loan is a consumer credit without proof of use, with constant monthly payments. You usually don’t need to explain to the lender why you need to use credit. With this fixed rate loan, only basic supporting documents are required (identity, income, domicile, banking information, etc.).
As a result, as with revolving credit, taking out a personal loan can finance all types of goods or services, provided that the limits set by the Consumer Code are respected (see below).
With the personal loan, no need to justify your request … However, proof of purchase may be requested by some establishments if the amount of the personal loan is large.
Due to the free use of the personal loan, the lending bank considers that granting this type of credit is riskier than granting an affected credit, for which the allocated loan is linked to a use specified in the contract. This is why the personal loan rate that you can get is often higher than the rate on an affected loan.
How much can I borrow with a personal loan?
As with any consumer loan, the amount of a personal loan is a minimum of € 200. Since the Lagarde law introduced in 2010, personal loans without proof of use are also capped and cannot exceed € 75,000 (€ 21,500 before 2010).
What is the legal duration of the personal loan?
Making a personal loan is governed by the Consumer Code. So, in terms of loan term, you should borrow for at least 3 months. The code does not, however, provide for a ceiling duration. This varies depending on the lender, but it generally does not exceed 84 months (7 months).