ZOOM ON... the different forms of loans

A loan is a transaction in which funds are given to a beneficiary who, in return, is required to repay them. Depending on the purpose, the terms and the people involved, the loan takes several forms. Let's discover together the real estate loan, the loan between individuals and the consumer credits.

Real estate loan

The real estate loan or real estate credit is an operation by which a lender puts at the disposal of a customer a sum of money to finance the construction or theacquisition of a building for residential use (or mixed). Are also qualified of real loans, the credits guaranteed by a mortgage.

To grant you a real estate loan, financial organizations take into account several factors. Your total income is a determining factor that they take into account. Your professional situation (permanent or fixed-term contract), the guarantees, the insurances, the remaining to live, the jump of load and the duration of your loan are also taken into account.

Your personal situation matters. Lenders are interested in how you manage your finances, taking into account your current loans and your ability to repay them. Your health status is also a factor. If you have serious or chronic health problems, banks may deny your loan.

Lending between individuals

The loan between individualsAs its name indicates, this is a form of loan that does not involve traditional banking intermediaries. It corresponds to a participative finance. It takes place between a private individual who needs cash to finance his projects and another private individual who wishes to make his savings grow while supporting the real economy.

For loans between individuals, the operation takes place through online platforms that act as intermediaries and offer this type of credit. A loan contract is duly established between the applicant and the lender. Any person over 18 with a current account and residing in France can apply for a loan between individuals.

In addition, platforms that act as intermediaries between individuals must meet certain conditions. They must hold an approval issued by the Autorité du Contrôle Prudentiel et de Résolution (ACPR). They must also be registered as a participative intermediary with the ORIAS (Unique Register of Insurance, Finance and Banking Intermediaries). On these points, we can say that the company Finfrog is reliable for loans between individuals, because it meets these conditions perfectly.

Consumer credits

The consumer credits are credits frequently used by the households. There are many of them. We distinguish those which are assigned to the purchase of a good or a defined service and those which are not assigned and which can be used freely. As consumer credits we can find the car loan, the personal loan or the loan for work.

Car credit

A car loan is a loan for an individual and is often used to purchase a vehicle. A car loan can be taken out directly at the dealership, at a bank or at specialized institutions. Although 100% financing of a vehicle by credit is very common, it is always a good idea to make a personal contribution, as this lowers the cost of the credit.

Moreover, if you decide to make your car loan online, you will have the possibility to compare several offers in one place. Also, thanks to the simulator, you could vary the duration and the amount to borrow to know the interest rate and the amount of the monthly payments.

Personal loan

The personal loan is an unrestricted loan that can therefore be used to finance all types of goods and services. It is a type of loan that provides a cash solution to a large number of households. Indeed, following the subscription to this type of credit, the borrower receives directly on his account the totality of the borrowed sum.

It is possible to obtain a personal loan in a bank, a specialized establishment or online. Faced with the multiple offers, do not forget to compare the credits thanks to the APR.

Work loan

The work loan is a loan intended for the financing of work, that they are carried out by yourself or by professionals and that it is about material or labour. Thus, households can take out a work loan for the renovation of the house, the creation of a pool or the installation of a solar panel.

The work loan can be taken out in a bank, with a specialized establishment or online.

In summary, loans are contracted in several forms. Among them, we can retain the real estate loan, the loan between private individuals, the personal loan, the car loan and the loan for work.