Consumer credit definition → what is a loan, credit conso

You are considering making a loan for the first time, but you do not know which one to choose. In this case, why not opt ​​for a consumer credit ? To bring you more clarity, take the time to read this article we have prepared.

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Consumer credit: definition

The consumer credit is the fact that a bank offers a loan ranging from 200 to 75000 euros to a natural and legal person, loan repayable more than 3 months. Note that the money you receive in this way should not be used as if it were a home loan for the purchase of a house, apartment or land, real estate being excluded from the scope of the Conso. However, for the rest, you will be allowed to buy any type of consumer goods such as new furniture, a car, leisure … in short, a wide choice as it is not related to housing or land.

As with almost any other credit, you will have to repay the amount you will get from the bank a month. In addition to that, you will have to pay the cost of your credit.

Choose between types of consumer loans

If you decide to start a consumer credit , you will have to choose between 4 types of credit for consumption. You could first make a personal loan that will require the bank to give you the agreed sum together at one time. Be aware that your creditor will have to inform you of the repayment terms once the contract is signed.

There is also the revolving loan, which is to put some of your money in reserve. This will allow you to repay part of your loan without worrying too much. However, you will have to make a monthly refund as soon as you start to hit the reserve. The downside with this type of loan lies in the height of the interest rate. Know also that it can be renewed at each expiration each year. In addition to this, the law has made it possible to repay up to 3 years if you borrow the sum of 3000 euros and 2 years more if you get more than 3000 euros.

In third place comes the assigned loan for which you will have to determine in advance the things you will want to buy and make the account with your bank. Thus, you will get a sum that will be only for the items you plan to buy. Last possibility, you can apply for an unallocated loan that wants by definition that you do not have to inform the bank of your project.

Here are some benefits you could get from a consumer credit

The potential benefits of this type of loan are multiple. Indeed, you will be able to use your money from the date of signing the contract with the bank. In addition to this, you can always check the price of a property in case you forget it. You will also have the opportunity to consult the FICP according to the obligations imposed by the law. Finally, you will have 14 days after signing the contract to cancel the credit if you want, except for an assigned loan that will require you to act in 3 days only.

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