How to open a personal loan?
To open a personal loan, you can contact a lending institution: a bank (yours or other) or a credit institution. It is also possible to get help from a broker, for a commission on the amount you will borrow. You are free to turn to the lender of your choice.
To find the most advantageous personal loan, the ideal is to compare offers for free on an online comparator!
Once your personal loan application has been completed, acceptance is not automatic. The lender reviews your file to see if you meet the qualifying conditions and if you will be able to meet your repayment obligations.
The conditions for obtaining the personal loan
Acceptance of your personal loan application meets certain conditions. These vary according to the lending institutions, which set their own criteria. Overall, here are the points that will be studied in your file:
- Your professional situation : your age, your profession, your monthly net income, your type of contract;
- Your personal situation : family situation, dependent children, if you are a tenant, owner …
- Your banking situation : other credit (s) in progress …
Banks and credit institutions need all this information to control your creditworthiness and assess your borrowing capacity.
Even if the law does not impose it, some organizations also condition the obtaining of the personal loan to the subscription of a borrower insurance.
The legal conditions of the personal loan
If your request for a personal loan is accepted, the lending institution will offer you an offer. Before you take out a personal loan and sign the contract, the loan must provide you with a document that summarizes, among other things, the following:
- The identity and address of the lender;
- The type of credit, here a personal loan;
- The amount of the credit: between € 200 and € 75,000 and its availability;
- The duration of the contract (between 3 months and 5 years), the number and schedule of repayments;
- The total amount due;
- The annual percentage rate of charge (APR);
- Indemnities in case of late payment;
- The existence of a retraction period of 14 calendar days from the signature.
Note that unlike the credit allocated, the personal loan can be used for the purchase of any consumer goods or other services without justification. On the other hand, the personal loan can not be intended for the purchase of real estate or professional activity.
Repayment of a personal loan
The repayment of the personal loan begins once the credit has been accepted, the loan amount has been paid and the withdrawal period of 14 days has passed. The amount to be repaid monthly has been fixed in the contract.
Early repayment case
As with all consumer loans, prepayment and full repayment of a personal loan is possible. The same is true for a partial early repayment, on one condition: the minimum repayment amount must be indicated in the credit agreement. It is necessary to contact the lending organization by registered letter with acknowledgment of receipt and define with him the terms of the operation.
How to close a personal loan?
The closing of a personal loan is done automatically on its due date. As soon as you have repaid all the monthly payments stipulated in the contract, the personal loan ends automatically.
However, it is possible to close the personal loan earlier than the date initially set in two situations:
- Thanks to an early repayment , the terms of which have been validated by the lending institution;
- With the withdrawal period , but only within 14 days of signing the personal loan.