Simulation of personal loans
It is often more economical to use a loan to finance your plans for the purchase of equipment, wedding or work. The personal loan is a good way to quickly have the money available, without justifying its use. It is a consumer credit granted by credit institutions to buy a new vehicle, change the decor of your apartment, go on vacation or carry out work. Attention, credit without proof does not mean, however, credit without proof of income , but simply without necessary justification as to the project to be financed.
The amount of personal loan granted is capped at $ 75,000 and its repayment will be made every month until the end of the loan. To support it much better, you have to plan the credit you want to take, determine your needs and the amount of your loan. Like any credit, the personal loan has a cost and to know it, it is advisable to carry out an online personal loan simulation. There are several types of personal loan and carrying out a simulation of the desired loan helps the good planning of the loan project and gives you real advantages.
What is the simulation of a personal loan?
The personal loan simulation gives you an idea of your budget over the life of the loan. It lets you know how much you pay per month depending on the amount of your loan, ancillary expenses and the interest rate (APR).
To carry out a personal loan simulation, you must specify the type of loan for the project, the amount you want to borrow as well as the desired duration of the loan. This information provided online allows you to obtain an estimate of your monthly payment, calculated on the basis of an average rate initially. However, there are loan simulators that can give you a personalized rate based on your loan information.
The overall cost of a loan is the sum of the amount loaned with the costs of the loan (administration fees, insurance) plus the total interest expense over the entire term of the loan. For a personal loan, what is effectively determined by simulation is:
- the level of the Annual Global Effective Rate or APR
- monthly payments to be repaid
- monthly payments with insurance
- the cost of insurance according to the lender
- the overall cost of the personal loan
This essential step in knowing the real cost of the loan is only one step in the study of your loan project.
Personal loan simulation tools
There are consumer credit simulation tools that give you the possibility to calculate your borrowing capacity and your current debt ratio in addition to giving an estimate of the monthly payments. They come in the form of a calculator with several dialog boxes to fill in. After filling in the requested information, you launch the simulation to obtain the results. The essential calculators are the APR simulator, the borrowing capacity simulator and the debt ratio simulator.
The borrowing capacity lets you know the limit of the amount you can borrow without falling into insolvency. To simulate it, you must indicate the type of your project (work loan, equipment loan, car loan, etc.), the amount reimbursed per month, the total duration of the loan as well as the lender's interest rate.
Regarding the debt ratio, it expresses the amount of your expenses according to your current income. Its calculation requires you to indicate all your monthly resources, that is to say the main household income, secondary income (s), premiums, alimony, rents received and your charges. The charges can be rent, monthly payments for other loans, daily expenses, pensions paid etc.
The rest of your process will go through an interview with a commercial advisor from your lending institution. The latter must provide you by law, the draft credit contract. But first, you can simulate the annual percentage rate of charge with an APR simulator. The APR is calculated with the nominal debit rate of the lender, the administration fees and any insurance costs. This is the element that determines the real cost of credit.
What personal loans can we simulate?
The offers of personal loans are numerous and depend on the project to be financed. Among the most common are:
- the usual consumer purchase credit which finances, for example, the purchase of household appliances, salon equipment, vacations, unforeseen events, etc.
- the widespread personal auto loan which is used to finance the purchase of an old or new vehicle
- the personal work loan which allows you to bring or complete the necessary budget for essential work in your apartment.
Each type of loan has its adapted simulator and it is advisable to resort to the personal loan simulation according to the loan (car, work…) to better understand the different aspects of your project.
The advantages of personal loan simulation
It is important to clearly define your loan project in order to evaluate it, plan it and anticipate unpleasant surprises. Before any steps, you can with simulations:
- properly analyze and prepare your loan project
- know the maximum amount that you are able to borrow from a financial institution or an intermediary while remaining solvent
- know your maximum debt threshold
- know your borrowing capacity or your purchasing capacity depending on the type of project
- have your monthly work, car or consumption payments due
- have the best credit by comparing the different offers on the market
- prepare your personal loan well.
This information allows you to fully understand the proposals that the lender will make to you and to control the overall cost of your credit project.
Consumer purchase personal loan simulation
The personal consumer purchase loan is intended for all kinds of personal consumption expenses. Like all personal loans, it is granted without proof and it is necessary to properly assess the risks it can entail on your finances by carrying out a simulation of a personal loan purchase consumption.
- How to simulate your personal consumer purchase loan?
To obtain a consumer purchase personal loan simulation, connect to an online simulator and simply enter the desired loan amount as well as the loan duration. You can do this on several online simulators in order to compare. The consumer purchase credit such as the car loan and the work loan, is part of the consumption loans.
Personal auto loan simulation
Auto credit is a consumer loan that is provided to you directly by the bank, by a financial intermediary or by a car dealership. It is intended to finance the acquisition of a new or used automobile.
Often, using credit makes it easier for you to buy regardless of your reason for buying a vehicle. The auto loan can be an affected loan (taken out for a specific purpose with the possibility of not repaying the loan when the vehicle is defective) or a personal loan that does not require any justification.
Regarding the personal auto loan, the large sums involved require carrying out a personal auto loan simulation.
- How to carry out a personal auto loan simulation?
Doing a personal auto loan simulation is a matter of a few clicks that can be sent very quickly. Go online to a personal credit calculator and use the calculators to fill out.
For an APR calculator, the information to provide is the desired loan amount and the loan term. Usually, the calculator automatically adjusts the interest rate based on the length of the loan. The results are instantly returned to you after launch.
Personal loan simulation work
Like other consumption credits, the work loan can be a personal loan without proof or an assigned credit loan with compulsory proof. The work loan is dedicated to the financing of all types of work. According to the Lagarde law of 2010, it is capped at $ 75,000 and above, it is qualified as a mortgage. Given the amounts granted, it is necessary to carry out a simulation of a personal work loan.
- How to simulate your personal work loan?
Use an online work loan simulator. It's a quick, simple process. Indicate:
- the amount of your loan
- the total duration of the work in months
- the APR (annual percentage rate of charge) provided by your creditor.
The work loan simulator will give you the usual information, that is to say the monthly payments (monthly work payments), the duration and the cost of the loan but among other differences, the calculations are made according to the duration in months of the work to do.
What is a monthly work payment?
The monthly work payment is one of the information that provides you with a personal work loan simulation. It designates the installment that you repay every month on the work credits that you contract.
Note that a personal loan simulation allows you to anticipate the creditor's requests and facilitates the rapid processing of your application file. As a result, you can get a quick personal loan issued according to the lender within 24 or 48 hours after application.
The personal loan is a fast, flexible and efficient product to finance a personal project. However, you should carefully analyze your credit project before committing. To do this, use online personal loan simulation tools to get key information about your borrowing capacity, your debt ratio, and the actual cost of borrowing you expect to achieve. There are several personal loan simulators suitable for all types of project. The personal loan simulation gives you the advantage of determining the loan you want while controlling the risks as much as possible. In addition, personal loan comparators will allow you to clearly distinguish all the offers available on the market in order to choose the best offer for you.