Who is Franfinance?
Franfinance is a lending organization offering financial solutions to individuals. This subsidiary of Société Générale was created in 1989 and specializes in consumer credit. This company is present on the Internet and always wants to be accessible to its customers. Specialized advisers are still available by phone and mail.
The Franfinance website is very accessible and offers tools to borrowers to allow them to check their debt capacity before any request. Franfinance offers consumer loan, credit redemption and insurance solutions.
Personal loans adapted to the different situations that the consumer may encounter are offered on the site. A tab allows you to select your project and depending on it, a solution is offered. For example, if the borrower wishes to borrow within the framework of a marriage, adapted solutions are presented to him. So he can do a simulation for a personal loan or a revolving credit.
The home page of the website directly offers a loan simulator. Once the consumer has entered his type of project (work, new car purchase, personal loan, etc.), the amount and the monthly payments, the search engine will display a proposal for a payment solution.
The maximum amount that can be borrowed as well as the amount of monthly payments and their duration vary according to the type of loan chosen. So, for example, the amount of the personal loan will be limited to $ 8,000 (with the possibility of repaying in maximum 48 months) where it will be limited to $ 74,200 (with the possibility of repaying in maximum 72 months) for the buying a new car.
Like other credit institutions, Franfinance details its loan proposal by showing the total amount of credit as well as the duration desired by the consumer. There is a priori no administration fees. The APR (Global Effective Annual Rate) is indicated. This rate allows the borrower to know the real cost of his credit. This rate includes the base interest rate (nominal rate) as well as miscellaneous costs, commissions and miscellaneous remuneration. Each establishment is free to apply the rate it wishes. It allows the borrower to be able to compare several proposals from different organizations.
The total amount owed by the borrower is included (in apparent character), thus allowing the latter to know what he will really have to repay, without having to calculate it with the APR. The consumer has the possibility of modifying his monthly payments. This allows him to perform different simulations. By doing this, he will notice that the cost of the loan decreases as the repayment term decreases and the monthly payments increase. The APR is lower when the loan period is relatively short. Indeed, it is much less risky for the institution to lend on the short term than on the long term. It is much more likely that he will have to deal with payment incidents on more or less long-term credits. The borrower short of his loan is likely to have to face unforeseen personal or professional situations which may have an impact on his repayment capacity. The longer the repayment period, the more likely and possibly recurring these situations will be. By increasing its APR, the lender is trying to limit its financial losses.
Like the other sites offering payment facilities, Franfinance offers optional insurance for all consumer loan subscriptions. It should be remembered that unlike real estate loans, insurance is not legally compulsory when taking out consumer credit. Optional insurance allows the borrower to insure (according to different guarantee formulas) against the risk of default in the event of accident, death or sometimes even loss of employment. If the situation facing the insured allows the implementation of the insurance contract, the repayment of the loan will be borne by the insurer. The death guarantee is actually considered by the borrower. Do not forget that in the event of death, the debt between the borrower and the lender will be passed on during the succession. Thus, his heirs will be required to repay the remaining monthly payments. Optional insurance will prevent this delicate situation.
This optional insurance obviously has a cost that will be added to each monthly reimbursement. If the borrower decides not to take out this guarantee, a message informs him of the transmission of his debt to his heirs (surviving spouse, children, parents, etc.).
As with every consumer credit application, the borrower must indicate various essential information when applying for his loan. This will allow Franfinance to position itself and thus give an answer in principle at the end of the seizure.
Thus, the borrower must in particular provide personal information concerning his identity (name, first name, date of birth, etc.), his address and the structure of his family. Once this information is completed, the borrower must provide information on his professional situation and in particular his monthly income, indicating whether they are regular (CDI) or not (CDD, interim, etc.). Of course, a person with a fixed income will be much more likely to get a positive response when applying for a loan.
Once all the income has been entered, the applicant must indicate his fixed costs. A quick calculation taking into account his income and expenses will determine his debt ratio and verify that he is in financial capacity to repay the loan. It should be remembered that the threshold debt ratio for obtaining a loan is generally set at 33%. Thus, the borrower's expenses must not exceed 33% of his fixed net income. Beyond that, it is considered that the borrower is not in a favorable situation allowing him to borrow. There will be a high probability that he will not be able to repay his monthly payments. A negative answer will then be given.
The borrower must be aware of his situation. A simple internet search allows him to calculate his debt ratio. The Franfinance site offers an application allowing consumers to calculate it.
Before obtaining his answer in principle, the borrower must decide whether or not to take out optional insurance. The principle of such insurance and the advantages it represents for the subscriber, in particular in the event of his possible death during reimbursement, is recalled. The latter must be made aware of the consequences of his death on his financial commitments and the transmission of these to his heirs.
Sending the request
Once the entire request has been completed, a response in principle is granted by the site and informs the borrower on whether or not it has been accepted. This response is said to be in principle because it will only be validated upon receipt of a complete file and in accordance with what was entered by computer during the request. The borrower must therefore provide all the supporting documents allowing him to prove his financial situation. He will provide his identity document with his various payslips and possibly a copy of his current account. He will be asked for a bank identity statement in order to pay him the funds.
At this stage, it should be remembered that the borrower is not yet linked with the banking establishment. The mere fact of making a request is not binding. Once the file has been verified by Franfinance, a detailed loan proposal will be made. The latter will include the essential elements of a loan offer (total borrowed, duration and amounts of monthly payments, APR, etc.). These different information will allow the borrower to be able to compare different offers and choose the one that suits him the most.
If the borrower does not follow up on this offer within 15 days, the institution is no longer obliged to maintain it under the same conditions. That is to say, the information given in the offer is only valid for 15 days. Beyond that, a new offer can be made, with different conditions.
Conversely, if the borrower decides to respond favorably to this offer, he has 14 days to withdraw. Once this period has expired, or if he has waived his right of withdrawal to move his case forward more quickly, he will be definitively committed to Franfinance. He will have the funds in the following days (generally within 48 hours). He will be required to reimburse the monthly payments according to the schedule agreed upon when subscribing. If he wishes to repay early, fees may be requested. However, these must be explicitly agreed upon when subscribing.
The website offers a very detailed “Questions / Answers” area where it contains all the most commonly asked questions, particularly on the reimbursement of monthly payments. A telephone number (surcharged) allows borrowers to reach customer service in order to answer any questions that have not been answered on the website.
Franfinance offers many services, the most developed of which are consumer credit payment facilities. The establishment is also developing in the insurance market, offering guarantees linked to various loans but also subsidiary guarantees to prevent new risks linked to new technologies (Internet). The website makes it possible to respond to a fairly comprehensive set of consumer needs and is intended to be very educational in order to support its client.