You plan to buy a TV, remake your kitchen, or install a pool in your garden? If your need is clearly identified, the loan is probably the right way to finance it since it allows you to borrow money to pay for a specific good or service. See http://highriverhighlandgames.com/wp-content/uploads/2017/03/wp-static-html-output-1-admin/aboutus/ for an example
How does this type of loan work? How much can I borrow? How is the refund?
Assigned credit: what is it?
The credit allocated is a consumer credit whose principle is to finance the purchase of a good ( purchase of a car or a motorcycle ) or a specific service ( payment of school fees or financing of a trip for example), which must be detailed in the contract.
The assigned loan therefore covers a specific need. If the planned purchase is not made (cancellation of the sale, withdrawal, etc.), the credit will be automatically canceled and the triggering of the refund will not be made.
How the affected credit works
Most often, the purchase of the good or the service is done at the same time as the contraction of credit, at the point of sale, or online.
The amount that can be borrowed with an assigned loan is between € 200 and € 75,000.
The minimum repayment period is 3 months. Its maximum duration depends on the lending institutions, as well as your repayment capacity. In general, it does not exceed 7 years.
The rate of an appropriated credit is generally 4.5 to 9%: it varies according to the length of repayment chosen, the amount borrowed and the institution from which you contract the loan. There are sometimes credits allocated to 0%, for example in promotional offers at car manufacturers.
To unlock loan funds, you must provide the lending institution with proof of purchase of the good or service detailed in the contract (invoice, order form, etc.). This proof must be provided at the loan study stage.
Assigned loan: what protection for the borrower?
The credit affected falls under the regulation of consumer credit:
- The lending agency has a duty to inform : in its loan offer, the nature of the good or service, as well as its price, must be detailed. He must also give you a standardized information sheet where you will find the APR of the credit (annual percentage rate of charge), as well as the details of the different loan dates.
- The lending institution will have to check your creditworthiness to make sure your repayment capacity is sufficient.
- If you do not get the loan to finance your purchase, the sales contract can not force you to finalize the purchase, and pay at once.
- After signing the loan agreement, you have 14 days to retract.
Reimbursement of the assigned credit
Repayment of an assigned loan begins only when the property has been delivered, or the service has been provided. We can not ask you to proceed with the payment of the goods or services until you have signed the loan offer and the deadline of 14 days has not elapsed.
This period can be shortened if you request the immediate delivery of the goods. The retraction period can then be up to 3 days. After delivery of the goods, you will lose your right of withdrawal.
In some cases, the seller may request a down payment. He will have to pay you back if you do not get the credit or if you retract.
Are you having trouble paying back your loan?
- You can request a delay from the lender. He is not obliged to accept.
- If you have borrower insurance, the latter can eventually take over the payment of loan payments if your difficulties arise from one of the circumstances stipulated in the contract (illness, disability, or loss of employment, for example).
- You can finally ask for a grace period in the district court. If granted, you may have an additional refund period of up to 2 years.