The speed of the personal loan
We would like to have the necessary cash on hand to meet our financial needs. Sometimes, even when you have the necessary funds, it is often better to resort to a credit such as the quick personal loan. The point is to combine the advantages of a loan with the ease, flexibility and speed that comes from having your own money available for use.
If your financial needs are motivated by consumption, know that the personal loan is also well suited to the financing of the acquisition of a consumer good, the realization of a dream (travel, marriage ...) or to face unexpected. One of its characteristics is that by subscribing to it, you quickly have the amount granted which remains within the limit of a ceiling.
What is an urgent personal loan?
The fast personal loan is a consumer credit granted without justification for its use. Unlike other consumer credits, the applicant does not have to provide proof of the use of the money to his lender who, moreover, does not ask for it. It is a quick credit agreement, generally issued between 24 and 48 hours or more, depending on the lending institution.
The fast personal loan is:
- granted on short notice making it well suited to fund an emergency
- flexible since you are free to use it as you wish and you can adapt it to your financing needs - this is why it is also called credit without proof
- flexible with the possibility that some lenders offer to take a break in the repayment of the loan which can however generate additional interest or interim interest
- easy to obtain, the procedures are lean and simple to perform. You have the first answers within minutes of your request.
- safe because it is covered when needed by accessible insurance. Insurance is optional and can be issued without a medical questionnaire to individuals aged 18 to 79. Depending on the insurance, all the remaining balance may be covered in the event of death or total and permanent loss of autonomy.
- granted at a very attractive rate for the borrower.
Due to its characteristics, the amount of the quick personal loan can range from $ 500 to $ 75,000 subject to acceptance of the application introduction. For a client deemed creditworthy, it is easier to obtain a large loan, but often small amounts are granted more quickly and easily.
The duration of the quick personal loan can range from a few months to several years and it will depend on the lender, the amount loaned as well as your repayment capacity.
Payment method and repayment option of the personal loan
The personal loan is often released after acceptance of the client's file, directly into his bank account and repayments are made in two ways. The borrower can choose to pay monthly payments until the end of the term or he can make a single payment to repay his credit at the end of the loan.
When the borrower chooses to pay monthly payments, the latter will consist of a portion of the borrowed capital, plus interest on the credit.
On the other hand, when he chooses to pay on time, he must still pay the interest on his loan every month. This option is suitable for those who expect a large inflow of money eventually.
At what rate do you make an urgent personal loan?
The fast personal loan is offered by financial institutions or intermediaries, at variable rates. The variation in the rate depends on the factors that form the interest rate. The determining rate for all rapid personal loans is the Annual Global Effective Rate (APR). It is calculated from:
- the nominal rate of the consumer credit or base interest rate which can be variable or fixed according to your agreement with the lender
- administrative fees, the amount of which vary between 1 and 1.5% of the loan
- the remuneration of insurance if they are taken out by the borrower.
The rate variation will follow the level of these various factors set by banks, intermediaries and insurers. However, the annual percentage rate of charge is capped at a maximum interest rate or usury rate defined by the Bank of United States.
In addition, the APR gives the borrower real visibility on the cost of his credit. It also gives him the opportunity to make comparisons on the quick personal loan offers in the market to choose better. The APR must by law be registered on the personal loan offer (advertising, loan offer after interview, leaflet, etc.) as part of the customer's information obligation.
Who can issue a personal loan?
Several players can provide you with a quick personal loan, starting with banks, credit institutions and intermediary organizations. But sellers of consumer goods such as car dealerships, scooters, camper vans, sellers of household appliances, TV, HIFI, construction materials (bathroom, veranda, etc.), are also able to provide your quick personal loan products.
Young people, couples, working people, retirees, anyone over 18 and over or under 75, depending on the lender, can benefit from a personal loan.
What explains the speed of the personal loan?
The speed of the personal loan is explained by several factors, the main one being the reduction in procedures. There is no control over the use of credit, no commitment, very little or no collateral to be provided. After the agreement in principle, the creditor quickly studies your file. This allows for example the issuance of an express credit within 24 hours after request.
The advantages of the personal loan
Among the advantages of the fast personal loan, we have:
- the right to withdraw from the contract free of charge 14 days after acceptance of the contract
- the possibility of anticipating the total repayment of the loan
- the fixed monthly repayment which facilitates the calculation of your budget
- quick decision between 1 and 2 working days
- actual risk coverage in the event of taking out insurance
- a follow-up adapted to your situation, which allows you in the event of difficulties to find with an advisor, a solution to your new financial situation.
- The possibility of obtaining an interest deduction from your income in the tax return.
- No personal contribution required, nor compulsory insurance
How to make a personal loan
Applying for a quick personal loan today can be done online, by phone, or by mail. All you have to do is complete an application and provide the lender with your identity information (copy of valid identity document), income (depending on your situation, pay slips, the last tax return, the latest tax notices, the main and supplementary pension statements, etc.). In general, some parts are requested over $ 3000 loan.
The creditor has the obligation according to the Lagarde law dating from 2010, after the pre-agreement and the interview to give you the credit offer including the type of personal credit, its amount, the deadlines, the fixed repayment period, the APR and the overall cost of credit expressed in US dollars. But before applying for a quick personal loan , it is necessary to carry out a simulation.
Personal loan simulation
Nowadays, it is easy to estimate the cost of your personal loan in advance by performing an online simulation. The simulators are in the form of a calculator to be filled in. There are several types of calculator. With the APR calculator, you must in most cases enter the desired capital, as well as the desired duration. The simulator will reflect the lender's APR on your data to give you the amount of monthly payments to be paid.
Among the other simulators, there is one that allows you to appreciate your debt ratio. To do this, you must provide it with all your income information (main, additional…) as well as all your expenses (expenses, current credit…). The last simulator calculates your borrowing capacity and allows you to properly assess the means at your disposal.
Types of urgent personal loan
The fast personal loan is well known under the name of consumer credit. But it is a consumer credit among others. It can affect:
- the purchase of goods (Scooter, household appliances, an emergency, etc.), of services, of leisure activities (travel, holidays, etc.) with the personal loan purchase of consumption
- the purchase of a new or old vehicle through the personal auto loan
- the performance of work in your home (bathroom, veranda, unforeseen ...) by the personal loan work.
Personal loan and credit consolidation
There are so-called 2 in 1 quick personal loan offers that give you the option of starting a new loan while linking the current loan (old loan) to new credit. The old loan can come from the same lender as from another financial institution. The advantage is having a single rate for all personal loans in order to control your repayment.
Conditions for urgently obtaining a personal loan
To obtain a quick personal loan, you must,
Be 18 years old, have a constant income and a healthy financial situation,
In a married couple, pacsé that a spouse signs the application,
Not be banned from banking or be the subject of legal proceedings,
In general, open or have a bank account with the lending institution,
The loan is granted after a personalized study, in accordance with the law and the validation of the loan file to avoid any over-indebtedness to the customer.
Quick personal loan is the ideal credit product to meet your urgent money needs. It covers most types of consumption and is issued quickly.
Market conditions and rates can be very advantageous, but sometimes the lender can change the rate applied to the loan. Note that in this case, it is possible to terminate your personal loan contract. You normally have a period of 14 days to be able to cancel your personal loan application and once the loan mechanism is in place, you always have the option of redeeming your credit.