You want to do work, buy a car or have your new kitchen installed? By taking out a payday loan, you can borrow up to 75,000 euros.
Payday loan is a simple and effective solution for financing various projects. Although it is frequently used in France, it is important to understand how it works, its advantages and disadvantages. In addition, several elements are to be considered at the time of subscription.
Operation and conditions for obtaining a payday loan
The payday loan is granted by a bank or credit institution. Once obtained, the borrower can use the amount as he sees fit, whether to buy a consumer good or any other benefit. The rate, the duration of the credit and the amount of the sums granted vary from one organization to another.
Before granting a payday loan, the bank or credit institution ensures that the applicant is solvent by consulting the files of the Banque de France. Some guarantees may also be requested by the lender depending on the borrower’s situation. It may be a personal guarantee such as a bond or a real security interest in a property. Financial investments such as a life insurance policy or shares can be pledged. In general, the conditions for obtaining a payday loan are much more flexible than those required to obtain a mortgage.
Advantages and disadvantages of the payday loan
Subscribing a payday loan offers several advantages. First, unlike the credit allocated, the payday loan can be used freely by its subscriber to make a project a reality, with or without input. This loan of up to 75,000 euros is obtained quickly and can be repaid for 84 months or less. In addition, there are many payday loan offers on the market allowing the plaintiff to compete in an attempt to obtain a better rate and save money. Remember that the law grants a withdrawal period of 14 days to the subscriber. If the latter is dissatisfied with the agreement, he can therefore request cancellation without charge. Finally, the characteristics of this consumer credit (amount, APR, total cost, duration, monthly payments and interest) are fixed upon signature and remain identical throughout the contract, which represents a real guarantee for the borrower.
At the same time, personal lending has two major disadvantages. In fact, this type of loan is not as flexible as the revolving loan since the amount made available can only be used once. Moreover, this credit is not dedicated, the bank can not vouch for the project of the subscriber and assure it on the good reception and conformity of the goods or service received after the purchase. In other words, in case of non-compliance, it will still have to repay the installments.
Our tips for choosing a payday loan at the best rate
Several criteria must be evaluated when choosing a payday loan. First of all, it is necessary to examine the annual percentage rate of charge (APR) which must be mentioned on the offer. This rate may vary depending on your profile and the institutions. As a reminder, the APR represents the actual cost of a payday loan and includes the nominal rate, application fees, registration fees and other fees collected by the lender, any insurance contributions. It is thus possible to know which is the most advantageous offer by comparing their APR. The payday loan offered by Bank Baosi, for example, enables projects between € 3,000 and € 50,000 to be financed. payday loan application and contract signing can be done 100% online, saving applicants time.
Among the other criteria to be taken into account, the calculation of the debt ratio is also essential. This rate makes it possible to determine the repayment capacity of the borrower by taking into account the application fees, the monthly payments and the rate. It is also advisable to use an online comparator especially if the amount of your loan is substantial.