A consumer credit without proof?
Consumer credit without proof is a consumer credit. Consequently, it is a redeemable loan the amount of which cannot be less than € 200, nor exceed € 75,000. Its repayment period must be greater than 3 months, but the law does not, however, provide for a maximum period.
Consumer credit without proof is also called the personal loan, because, to obtain a personal loan, the consumer does not need to provide any proof of the allocation of funding to the financial organization that grants it. Indeed, he has the possibility of using the credit as he sees fit, he can make a purchase, make up an overdraft, repay a loan, do work, finance a training ... This method of financing is very appreciated by consumers, in fact, in the first quarter of 2016, consumer credit without proof was the consumer credit most used by consumers.
The legal obligations of financial institutions on consumer loans without proof are the same as for other consumer loans. Thus, financial institutions are required to include on all communication media, the words: "a loan commits you and must be repaid, check your repayment capacities before committing yourself". The credit organization has an information obligation towards its customer. To do so, he must provide him with all the information related to his consumer credit without proof.
Thus, the client must have the name and address of the financial institution with which he is indebted. Therefore, if for one reason or another, he wishes to retract, this information would be essential to send the retraction letter. The type of consumer credit must appear clearly on the credit offer, for a consumer credit without proof, the mention will be personal loan. Regarding consumer credit without proof in itself; the borrower must have information relating to his loan such as the amount borrowed, as well as the conditions of the loan, namely, the repayment period, the number, amount and frequency of maturities. The application fees related to the opening of the credit line and the APR (Global Effective Annual Rate) charged on the loan must also be included.
More specific information must also be available to the borrower, such as the possibility of postponing the due date, compensation in the event of late payment, or in the event of early repayment ... If the consumer decides to prepay the financial institution, he will have to pay the same penalties as for all other consumer loans.
The early repayment indemnity paid by the consumer may not exceed 1% of the amount loaned if the remaining term of the loan is greater than one year, and 0.5% if the remaining term is less than one year. As for other consumer loans, the extension of maturity is possible, in fact, the borrower can benefit from it twice a year maximum. But deferral increases the cost of the loan, because deferral lengthens the term of the loan, and therefore the amount of interest paid.
All information concerning the consumer credit offer without proof will appear in the credit offer, the issuance of which is free. Legally, the loan offer which will have been published will be valid for at least 15 days, at the end of this period, the financial organization will have the possibility of modifying the loan conditions in particular by increasing the interest rate. As with all other consumer loans, the customer has a withdrawal period of 14 calendar days.
The absence of supporting documents in the allocation of the credit does not disengage the financial institution from its obligations, the financial institution will be obliged to make the verifications with the Bank of United States, in order to ensure that the borrower does not appear in the FICP (Individual Credit Repayment Incident File). This file groups together all individuals who have had a repayment incident on their credits. Registration with the FICP lasts 5 years, but when the individual corrects his situation, his name is deleted from the file.
As with other credits, consumers obtaining a consumer credit without supporting documents will be able to take out insurance and choose the risks for which they wish to be insured. The company issuing the credit will assess according to the consumer's file, the need to ask him to provide guarantees to obtain consumer credit without proof. Thus, the financial institution can request a bond from the borrower. In this case, the surety must also have a copy of the loan offer.
Where to get a personal loan?
But, for this consumer credit without proof, just like for other consumer loans, the customer must complete the questionnaire from the lending institution. The questionnaire, whether completed in an agency or online, contains a certain amount of information. In the questionnaire, the borrower informs the institution about the amount he wishes to borrow, and the duration he wants to obtain. It also includes the civil status of the applicant, his domicile and his financial situation.
A consumer wishing to obtain a consumer credit without proof can turn to financial institutions specializing in consumer credit (Sofinco, Cofidis, Cetelem, etc.). He can also apply for a personal loan directly from his banker. If the offers of other credit organizations seem more interesting to him, he can ask his banker to make him a better offer. However, the consumer is entirely free to choose the institution which will finance his consumer credit without proof.
Today, the majority of financial institutions offer consumers to simulate their credit directly online. The financial institution with this simulation wants to attract consumers. This online credit simulation allows the consumer to compare the different offers, and have an estimate of the cost of the line of credit he wishes to obtain.
In addition to credit organizations and banks, the financial subsidiaries of many groups also offer consumer loans without proof (Accord bank, Casino bank, etc.). The consumer can also turn to an insurer to obtain a personal loan.
In addition, the borrower can also contact a broker. Brokers compare and negotiate credit offers for their clients. Their objectives are to provide their customers with the most advantageous credit offers possible. By using a broker, the consumer hopes to be able to obtain terms that he would not have been able to obtain on his own, however, he will be charged by the broker for this service. The cost of this service varies from one provider to another, the consumer must be vigilant.
The main advantage for the customer is to be able to benefit from a line of credit without having to justify himself to the financial institution which grants it. In the context of financing via a consumer credit without proof, the lending organization not knowing the purpose of the financing line, it cannot ask the borrower to have a personal contribution for get the line of credit.
Financially, this credit has many advantages. On the one hand, the consumer can finance several projects simultaneously, without necessarily having to submit a loan request for each project. On the other hand, consumer credit without proof is much cheaper than revolving credit, or bank overdraft.
So, with the personal loan, the consumer can carry out several projects while controlling the cost of his credit.
However, even if the interest rate of consumer credit without proof is lower than the interest rate of the overdraft or that of the revolving credit, it is still higher than that of the affected credit.
With this consumer credit, the customer is much less protected than with an affected loan. Indeed, with an affected loan , if for one reason or another, the financed good was not delivered, or the purchase was canceled, then the financing would also be canceled. But, with the personal loan, the borrower would have to repay the financial organization. This is explained by the fact that when taking out the affected credit, the supplier is paid directly by the financial institution.
Today, the offer of consumer credit without proof is very varied. In the market, historically low interest rates have helped to lower the level of interest rates charged on consumer loans. Financial institutions are fighting an uphill battle to attract consumers.