MonthApril 2019

The different credits

France is a country where the borrower enjoys strict protection from the public authorities, unlike the Anglo-Saxon countries such as the United States. The crisis of 2008 regarding “Subprimes” came – if need be – remind us. Review of the different credits and their regulations.

What are the different forms of credit in France

What are the different forms of credit in France

There are different classifications of loans. Economists in particular often talk about borrowing in the short, medium and long term. This classification by duration brings no useful light to our senses and we prefer the one which consists in classifying the different loans according to their destination.

The different credits allocated

The loans allocated are those whose destination is perfectly identified at the time of the constitution of the file.

The mortgage

The mortgage is the main credit affected. Its purpose may be only the acquisition of real property, whether it is a dwelling as a principal residence, the purchase of a second home or a rental investment in the home. old or in the context of a tax exemption operation such as the Borloo law.

Consumer loan

Among the various consumer credits, some are said to be affected. This is the case of auto loans. The borrower subscribes for a loan in order to acquire a perfectly identified consumer good as to its use and amount.

Other loans fall within this framework, even if the borrower does not tell the bank what it is for. The protection is identical and all benefit from the Consumer Code.

Permanent credit

This is a special consumer loan. Indeed, the permanent credit allows to benefit from a credit line refundable only in case of use. Highly criticized by consumer associations, it was the subject of enhanced protection during the Lagarde Act on consumer credit.

Business credit

Professional credit is a business loan. It can serve both the individual enterprise, ie the craftsman, the trader or the liberal profession as the SME-SMI. The needs covered by this type of financing are multiple. Indeed, the professional loan can cover both real estate needs such as the purchase of business premises or offices, as well as equipment.

Even if the financial crisis makes access to credit more difficult, companies can also obtain a loan to cover cash requirements.

Our articles on credit

  • How to buy back your mortgage: advice to treat as an equal with the banker
  • The mortgage: all the information to not be wrong.
  • Mortgage life loan for seniors: read the article
  • State-assisted loan: all the information on PTZ 2013.
  • The loan between individuals
  • Reimbursing a loan in advance: how to convince your banker

Real estate loan

 

This question comes up regularly in various credit forums. But getting a real estate loan when you’re in a cdd or when you’re intermittent is entirely possible if you respect a certain number of conditions, even if a contract on a permanent contract makes it easier to borrow .

I am on a fixed term, can I get a mortgage?

I am on a fixed term, can I get a mortgage?

If you are in a cdd and have been working for about ten years, the situation will worry the banker less than if you have just entered the workforce and this is your first job.

In the case of co-borrowers, if one member of the couple has a contract of employment in CDI, the situation may only be reinforced.

Other criteria for analysis

The study of a credit file leads the banker to analyze a certain number of criteria. It will be all the more intransigent that you have a precarious situation with a fixed term contract or an interim contract.

The personal contribution

The first criterion of analysis, the personal contribution proves to the banker that you knew how to save. Moreover, to lend beyond the value of the real estate, ie to finance in addition the notary fees does not enchant the banker. This situation is even more troublesome if you do not have a stable situation and you ask for a mortgage when you are in cdd.

However, it is easy for banks to understand that a young worker has not had the years to build capital. It will therefore be more flexible for a purchase for a primo accedant.

Bank statements

When the job situation is not stabilized, bank statements can prove to your banker that you know how to manage your budget. Otherwise, you will have trouble convincing the bank that it takes no risk to lend you

The debt ratio

Again if you apply for a mortgage with a fixed-term employment contract, the bank will be very strict on the debt ratio and will accept very difficult debt over 33%.

The rest to live

This is a point in the credit file that is being watched more and more by the banker. The “remainder to live” is the portion of income that remains once the credit date has been settled. It must be sufficient to support the members of the household. This amount is therefore analyzed according to the number of people in the household

What you need to remember if you are applying for a real estate loan and you are in a cdd or intermediation is that it is quite possible to obtain a loan but expect that the other aspects of the file are analyzed in great detail by the banker.

Our articles on credit

  • Mortgage Loan Advantage
  • Permanent credit: the pitfalls to avoid
  • Professional credit without contributions: the conditions for obtaining financing for your company
  • Get immediate credit online: do you meet the requirements?
  • The PTZ plus
  • Buy a home loan to the competition
  • Credit allocated to a property