Loan insurance allows people wishing to take out a loan to be able to protect themselves against an inability to repay, for example the loss of a job or in the worst case a death. Loan insurance protects both the borrower and the credit institution against unforeseen repayment such as the risk of disability , incapacity or even the risk of death .
To support families in their vacation plans, the purchase of household appliances or the purchase of a car, the banks offer consumer credit. It is a type of loan that allows you to speed up the purchasing process without the need for significant savings. Back on the details of this transaction.
The choices available
People who use consumer credit (consumer credit comparison) can choose from three very distinct categories:
- The credit allocated to the purchase of movable property or a specific installation essential for the comfort of life of the applicants. Unlike unallocated credit or personal credit, this requires the attestation of the purchase of a product (4.5 to 9% of TEG for car credit (car loan comparator), motorcycle credit, leisure credit) or a well-defined service (works credit up to 75,000 dollars in funding).
- Personal credit or personal loan (compare personal loan) looks like assigned credit, but in this case there is no obligation to provide proof of purchase.
- The revolving credit is a loan dedicated to financing the current expenses of a family. It is governed by regulations which oblige the bank and the borrower to provide a monthly statement of all the sums due or an annual TEG (overall effective rate) of credit. Even if it is flexible, this type of loan must be repaid on time to avoid possible late payment.
33% debt ratio
This term evokes the borrowing capacity established on the basis of a calculation of agent inflows and outflows. Expressed as a percentage, the monthly repayment rate must always be in the thirds of income.
Insurance and other credit repurchases
In view of the risks of unemployment, invalidity and death, lending organizations often offer consumer credit insurance while the AREAS agreement is the only way for sick people to access the loan without going through the health questionnaire. Finally, the credit buyout solutions are there to avoid over-indebtedness via a grouping of credits and reimbursement at a better rate.