Works loan
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A well insured loan
With Loan Insurance, you and your loved ones are protected in the event of a hard blow: incapacity for work, disability or death.
Flexibility
You choose the repayment period at your convenience between 12 and 120 months.
Flexibility
You can benefit from a payment break twice a year in the event of temporary difficulty
No hidden costs
You only repay your monthly payments, not a penny more!
What is a work loan?
Many individuals wish to extend, renovate or improve the comfort of their main or secondary residence, or to equip it. It is also time to look for savings on energy bills and respect for the environment thanks to eco-responsible installations.
To help them realize these various projects, banks and credit institutions offer them a wide range of work loans in the form of assigned credits or assigned personal loans, allocated according to the profile of each borrower, his needs and its repayment capacities.
The legislation on work credit
Coming into the category of consumer credit, work credit obeys the same legal provisions. For its grant, the bank is based in particular on the solvency of the applicant. Its amount is limited by law to 75,000 euros. The issuance of a prior offer is mandatory. It presents all the terms of the future contract: the interest rate, the repayment period, the amount of the due dates, the suspensive clauses, the terms of early payment, etc.
The borrower is also entitled to a statutory withdrawal period of fourteen days from the date of signature of the contract, during which he can cancel the credit contract without having to justify his decision and without the lending institution being able to him. claim any compensation. Likewise, in the event of early repayment of the loan for an amount less than € 10,000 per year, no penalty is charged.
Borrower profiles
The work loan can be taken out by the owners of a main residence or a secondary residence, as well as by tenants wishing to transform or improve their apartment or their house. In addition to owners and tenants of a home, co-owners can use a works loan to finance interventions on the common parts of their co-ownership.
The work loan to finance your project
For the financing of your work project, you can have recourse to a classic work or real estate loan depending on the cost of your work. In order to help you see clearly among all the means of financing your projects, Credit-Internet.com has listed the main questions that you are likely to ask yourself before embarking on your project!
How does the work loan work?
The work loan is a consumer credit. It is governed by the Consumer Code. This is a loan for which the repayment is spread over time. Each month, the borrower repays a monthly payment according to the work credit rate applied by the lending institution.
There are several types of consumer credit depending on the use that the borrower wishes to make of his loan. Affected credit, personal loan (loan for work) and revolving credit.
Since the introduction of the Lagarde law (2010), the amount of a works credit is between 200 euros and limited to 75,000 euros (21,500 € previously) over a minimum repayment period of 3 months. If you need a financing envelope of more than 75,000 euros, it will be necessary to apply for a mortgage according to your project.
The personal loan works
The classic work loan is a personal work loan that the borrower can use as he sees fit. Indeed, it can be used to finance leisure activities, works, the purchase of a car, of a household appliance, without the borrower having to justify its use.
The work credit rates and fees associated with this loan vary from one lender to another. It is therefore necessary to make use of the competition to obtain the best rate. The credit rate applied depends on the duration of the works credit and the amount borrowed. The bank makes the sum of money available at one time. The borrower must then repay the personal work loan each month according to the amortization table in place.
The affected credit is linked to the good or service
Although the affected credit is often used for a car loan, it is also possible to take out an affected credit for your work. This is directly linked to the asset, for example, the purchase of a vehicle or equipment. The amount issued by this type of work loan can only be used for this specific project. In the event of non-fulfillment of the contract, the allocated credit is automatically canceled.
Revolving credit: a reserve of money available
Revolving credit is different from personal loan and affected credit. Indeed, its principle is based on the availability of a sum of money which the beneficiary can freely dispose of. It is also known under the name of permanent credit or revolving credit. The amount borrowed cannot exceed the maximum amount provided. The unlockable cash reserve is replenished as the borrower repays it. Interest is only charged on the amount borrowed, unlike other loans. Some bank cards offer this type of service with the option to pay on credit. It is therefore a reserve of money available according to the needs of the borrower.
