Simulation ready for work
Carrying out work is an important step in everyday life and often requires a significant budget. Consumer credit can be a good solution to provide this type of financing and there are many offers that can meet your needs.
What does the work loan consist of?
A work loan can be used to finance all different types of work, whether it is renovation, construction, expansion, decoration, insulation, etc. This work can be done by a professional as well as by the borrower himself.
The amount that can be borrowed to do work depends on the type of loan you choose. If it is a consumer credit, this amount can be up to 75,000 US dollars, however, to go beyond, it is the mortgage that will have to be chosen.
Before applying for work loan financing, it is important to have an estimate of the amount of work to be done. Do not hesitate to request quotes from the various companies and remember to make your request for financing before establishing a contract with them to avoid having to continue the work if you ever fail to obtain a credit.
What are the financing solutions for a work loan?
The most appropriate credit for work will depend on the type of work to be done as well as the amount needed to complete it. As part of the loans discussed here, you will need to subscribe to them with a bank or an institution specializing in credit. You will then fix, with the lender, the amount, the duration as well as the monthly payments. You will then have to repay the loan maturities each month, until the end of the contract.
First of all, we find the affected loan. It is a consumer credit intended to finance the specific purchase of a good or a service as is the case here. This loan will aim to finance only the work to be carried out and therefore, the amount of the sum granted will be equal to the price of this work. If ever a problem arises, for example, if the work is not carried out, the credit agreement will be automatically canceled. Thus, it is a solution which offers some security to the borrower. The latter must also provide proof of the use of the amount borrowed (an estimate for example).
The rates of the affected credits vary according to the different lenders but generally, they are between 4.5 and 9% and are also variable according to the repayment term. Generally, it is with the affected loan that you will be able to obtain the lowest rate since the purchase of an object or a service represents a certain guarantee for the lender.
Another solution would be to take out a personal loan. Unlike the assigned credit, this is not linked to the purchase of an object or a service. Thus, the borrower has the right to dispose of the loaned amount in the way he wishes, without having to provide proof of use. This loan can be more advantageous in the case, for example, where you need money to finance purchases parallel to the work you want to carry out. It can also be more suitable if you ever want to do the work yourself, without having to present the lender with invoices related to the purchase of materials.
The personal loan rate generally varies between 2.5 and 10%. It is easier to negotiate personal credit rather than the affected loan (in terms of administrative fees, rate, etc.), however, its interest rate is most often higher than that of an affected loan given that the lender does not have an actual collateral associated with a specific purchase.
Since both assigned credit and personal loan are consumer loans, they share certain characteristics. Both must be for an amount less than US $ 75,000 and are repayable over a period that must be greater than 3 months. In both cases, early repayment is possible. In addition, the borrower has 14 calendar days following the signing of the contract, during which he has the right to withdraw.
Finally, for work requiring a sum greater than 75,000 US dollars, there is another solution, the mortgage. Indeed, it can be used to finance anything related to real estate, not just the purchase of a house or an apartment. The duration of this credit will usually extend between 10 and 30 years, depending on the lender as well as the amount borrowed. Most often, you will find a lower interest rate than that of an affected credit or a personal loan, which is a considerable advantage. In addition, if he has ever taken out a mortgage for the purchase of real estate beforehand, the borrower will often be able to combine his monthly payments with those of the new credit.
However, there are certain drawbacks to this solution such as, for example, the time required to release funds which will be longer than that of a consumer credit. In addition, it will also be necessary here to provide the lender with supporting documents such as invoices or quotes related to the work.
We can note that there are still other financing solutions such as the zero-interest work loan, the home savings loan or even loans granted by aid organizations such as the eco-work loan, the home loan. social security, the home improvement loan or the Anah loan.
How to perform a work loan simulation and do the paperwork online?
To carry out a work loan simulation, you can go directly to the site of a bank or a credit company of your choice. Usually, these sites offer to do online simulations. You can also use an online comparator where, by performing the simulation, you will obtain different credit offers, highlighting the APR (annual percentage rate) of each of them. This will allow you to have a general view of these proposals in order to choose the financing best suited to your needs.
In order to best adapt the credit to your situation, you can vary the amount but also the duration and the monthly payments of the loan. This is how you can find the best deal. If you want a lower rate, you will most often have to reduce the repayment period which will increase the monthly payments by reducing the total cost of credit. Conversely, if lower monthly payments are more suited to your situation, the best will be to increase the duration of the credit (however this may also increase the rate). Do not hesitate to perform several simulations to find the financing solution that suits you best. Credit simulations are free and without obligation so you can do as many as needed.
Once you have decided on the amount and duration of the credit and also chosen the credit organization you want to appeal to, you will be able, if you wish, to carry out your procedures online, without leaving your home. you. This represents a considerable saving of time. If you choose this option, you will first need to complete an online form, providing your personal and professional information to determine your creditworthiness. Note that it is unlikely that an institution will grant you a loan if your debt ratio exceeds 33%.
More often than not, you will get an immediate policy response based on the information you provide in the form. You will then receive a loan offer that you will have to sign and send back to the credit institution along with the requested supporting documents. These will allow the lender to conduct a thorough examination of your file in order to decide whether or not to grant you the requested credit. We will also check if you are not registered with the FICP (national file of incidents of repayment of loans to individuals). A final answer will then be communicated to you and once the contract is signed, the money should be released fairly quickly (if you take out a consumer credit).
What supporting documents are required for a work loan?
The finalization of the study of the borrower's file requires certain supporting documents which must be provided to the lender. Among the essential documents in the context of a work loan, we find:
-A valid identity document (national identity card, passport, residence or resident card, etc.)
-A proof of address (electricity bill, property tax, rent receipt ...)
- Proof of income (last tax notice, last pay slips, certificate of family benefits ...)
-A bank identity statement (RIB)
-A proof of financing such as an estimate or an invoice (if you are requesting an affected credit)
However, this list is not exhaustive and it is possible that the establishment with which you have applied for a work loan requires other documents to be able to finalize the study of your file.
Example of a work loan simulation
Let's take an example of financing at Franfinance. If we choose an amount of 20,000 US dollars and a duration of 60 months (5 years), the amount of the monthly payments will be 375.53 US dollars with an APR of 4.9%. If we take the same amount and change the duration for 48 months (4 years), the monthly payments will be 447.49 US dollars with an APR of 3.6%.