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
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 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.
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.
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.
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