A personal loan: what is it in practice?
The personal loan is above all a consumer credit. It is intended for personal needs other than those relating to a real estate project. It is thus subject to the provisions of the consumer code. It can be offered by online banks, traditional banks as well as credit institutions. On LoanScouter.com for example, as on many other credit comparators, you will find a range of personal loan offers adapted to your personal needs.
The personal loan can also be defined as an “unrestricted” credit. It’s considered unrestricted because the amount you want to borrow won’t be assigned to a specific purchase or achievement. It is requested to cover cash needs, in particular those related to cleaning. Therefore, there is no need to provide supporting documents for your project before being entitled to it, unlike the allocated credits.
When should I apply for a personal loan?
All personal loans fulfill 3 main characteristics: the total cost of the loan/interest rate, the amount of the monthly payments and the repayment term of the loan. These are fixed and known before the signing of the contract.
You can ask :
- A wedding credit for the purpose of organizing a wedding;
- A Pacs credit to prepare your living together, see your wedding;
- A funeral credit to organize the funeral of a deceased loved one;
- A family loan to prepare for a major event in the family or to provide financial support to a family member;
- A study loan to finance your studies or those of your children;
- A birth loan to prepare for the arrival of a newborn (arrange a bedroom for example);
- A divorce credit to organize the legal separation from your spouse.
Other scenarios in which to apply for a personal loan
There are other types of loans to meet a number of personal needs. For example, you can apply for a personal loan to:
- Finance the purchase of high-tech equipment or other leisure projects (leisure credit);
- Organize a trip (travel credit);
- Preparing for a move (moving loan);
- Finance your family vacation (vacation credit);
- Buy sports equipment (sport credit);
- Subsidize medical expenses, the purchase of new glasses, the installation of dental prostheses for example (health credit);
- Pay the cost of repairing and towing your vehicle (car repair credit).
The granting of the personal loan, what does the consumer code say?
The law allows lenders to grant a personal loan within the following limits:
- The amount borrowed must be between €200 and €75,000;
- The duration of the loan is 3 months minimum. Each credit organization is free to set the maximum duration of its personal loans.
You now know the projects that can be financed with a personal loan. Do not hesitate to compare the different offers online to make the right choice.