Today, more and more households are using consumer credit. Whether it is to buy a car or finance a personal project, such a credit remains attractive. By using it, the borrower can easily finance his project without having to save.
What is consumer credit?
Consumer credit Belgium is a financing solution offered by financial institutions. It is a loan intended to finance a project other than the purchase of real estate. Concretely, consumer credit is a sum granted by a bank or a credit institution. It can be used to buy personal property, finance a personal project or even a service.
Like other types of loans, consumer credit requires repayment. The borrowed capital must be paid with interest, and this, at fixed dates. The destination of the borrowed amount is supervised by the public authorities. Also, all borrowers must refer to these rules for the credit to be used responsibly. Moreover, they must be aware of their commitment at the time of taking out the credit and validating it.
Currently, many financial institutions offer online express credit. Simple and easy, this system allows you to take out a loan quickly.
The different types of consumer credit
In France, there are two types of consumer credit: installment loan and the opening of credit.
1. The installment loan
The installment loan is a personal credit validated by a specialized institution. Unlike other types of credit, it does come with a mortgage. The amount granted by the bank will depend on the financial capacity of the borrower. The loan repayment is generally made every month. The interest rate, maturity and monthly payments are known from the start. The advantage of this type of loan lies in the fixed rate of interest. Indeed, the borrower benefits from a fixed rate throughout the loan contract. In addition, he will not need to justify to the bank the use of the amount. The borrower thus has a certain freedom in the use of money. It is also possible to take out an installment loan online.
2. The opening of credit
The opening of credit is a kind of reserve of money made available to the borrower. The latter makes a request to the bank for the loan of a certain amount. When the loan is validated, the borrower can have part of the capital. He cannot withdraw the amount borrowed at one time. This must be withdrawn as and when required by the borrower. The reimbursement is done in the same way. When the borrower does not draw on the reserve, he does not repay. In general, the opening of credit is accompanied by the issuance of a credit card.
In Belgium, on the other hand, there are three types of consumer credit. Individuals can use:
- Personal credit
- Leasing for the rental contract
- A bridge loan which is a kind of advance given to a person pending payment