Compare rates to get the personal loan that best suits your needs
Are you considering taking out a personal loan but don't know how to find out where to start? Don't panic, this article is for you. Here, we give you all the information you need before you start taking out a personal loan and guide you to find the personal loan with the most interesting rate and the most suitable for your project.
What is a personal loan?
Personal loan is a type of consumer credit, established between a financial institution and an underwriter, which is not assigned to a specific purchase. It can therefore allow the individual who subscribes to it to finance the project of his choice: new car, new household appliances, leisure, travel, etc. It can even, if necessary, make it possible to restore a small temporary cash flow problem.
The personal loan is established over a few months, or even a few years, five at most. The subscriber will have to repay the sum of money borrowed by means of monthly payments which will be established at the signing of the contract. So, no bad surprises, we know exactly how much we reimburse each month and for how long. The personal loan is an ideal aid in the event of a project since it allows you not to have to dip into your savings to achieve it. A solution that is attracting more and more consumers. Please note, the personal loan is capped and you will not be able to borrow more than US $ 75,000. In addition, to obtain a personal loan, you will need to justify stable and sufficient income unlike microcredit which is a credit without proof of income .
Personal loan: what does the law say?
Since May 2011, the law greatly protects the consumer. Thus, all the contracts that will be offered to you must contain some essential information. Among them, the following must be specified: the type of loan, the total amount of the loan as well as the conditions for making the funds available, the duration of the contract, the amount, number and frequency of installments that the borrower must pay, the borrowing rate as well as the conditions applicable to this rate, the annual percentage rate of charge and the total amount owed by the borrower, all calculated at the time of the conclusion of the credit agreement, and finally all costs related to the execution of the credit agreement.
Have you taken out a personal loan and you regret it? Do not panic. Since 2011, the withdrawal period after taking out a personal loan has been reduced from 7 to 14 days.
After taking out the credit, at the time of signing, you have the option for 14 calendar days to waive your credit by exercising your right of withdrawal. It could not be easier. A withdrawal slip is available on your credit agreement and is detachable. All you need to do is return it to the lender by registered letter with acknowledgment of receipt to the address indicated.
Once the withdrawal period has elapsed, and if you have not changed your mind, the entire corresponding amount will be paid, in one go, to the borrower's account concerned. The prior loan offer will become a loan agreement. You will then be required to repay your personal loan . Note, however, that you can proceed to the repurchase of credits if you have several credits in progress.
How to choose the right personal loan?
Once you have decided whether or not to subscribe to a personal loan, it still remains to know how to choose the personal loan most suited to your budget and your project. We are here to help you. To compare the different personal loan offers, it's simple! Most credit organizations offer you online simulators allowing you to find the offer that best suits your needs and your budget.First, we advise you to focus on a few essential elements: the sum (it s is asking you how much money I need to carry out my project?), the duration of the credit: it is the number of months during which you will repay your credit (be careful, make sure that the duration is not too long but also that the monthly payments are not too high at the risk of putting you in financial difficulty), the annual percentage rate (this is the annual rate comprising all the costs related to the credit. measure the total cost of credit.Monthly payments should also attract your full attention and finally the cost of borrower insurance (as the name suggests this is what insurance costs you your credit if you have taken out one. during the a subscription thereof).
All of these comparative elements will allow you to choose the personal loan most suited to your project by looking at the offers that the different financial organizations will make to you. Once the most interesting offer has been chosen, it's up to you to make an appointment with the bank in order to finalize your file.