Loans in France explained
Getting your hands on the perfect loan for yourself deems to be challenging, especially if you are new to a city/country. If you are moving to France and want to explore the type of loans available, the article is the perfect information you need to read. The guide explains everything that you need to know about loans in France.
List of loan providers in France
All these loans providers offer different rates and options for different prices. Comparing the specifications of each loan provider can be time-consuming. Are you wondering which provider offers the best deals or the best options? We have listed the most reliable loan companies below while using the following criteria:
Kreditiweb is an outstanding loan provider in France from where you can get ultimate loans for your different requirements, including home loans, car loans, personal loans, and more.
Cashper is a renowned French loan provider from where you can get reliable, quick, and straightforward access to small to a large amount of money whenever you want, depending on your requirements.
Another great French loan provider is Compartaux. Here, you can compare different credit scores before you opt for a French loan. Find the best rate today!
Captain Credit is a reputed loan calculator in France where you can compare the top ten French loan providers and then get your hands on the suitable one.
Types of loans in France:
Similar to other countries, France too has a significant types of loans available.
1. Personal loan:There are a number of loans available, with the most common form being prêt personnel. This type can be guaranteed for any purpose and for a period of three months to five years.
At present, the rates for such loans are usually around 2.0% pa. The loan might be less than 1.500 Euros, however, it can be higher as compared to this rate.
2. Payday loan France:
Payday loans are prevalent, which are designed to help individuals having gaps in the monthly budget. This is why the financing option is mainly useful whenever you are facing any cash crunch. No longer will you have to worry about the process, as the loan is very simple to use.
3. Student loan for international students in France:
These loans fund up to the entire cost of education, as governed by the school. The total cost of education involves tuition fees, living expenses, and related costs.
4. Home loans:
Another type of loan is credit travaux which is a loan popular for home improvements. There are loans available to lease the credit arrangements known as la location avec option d’achat (LOA). Moreover, these are loans made by a finance house and are directly linked to the supplier instead of through the bank.
This is where the goods are efficiently rented to you while you are granted the right to buy later. This is when a deposit of 15% is required.
5. Vehicle loan:
The auto loan is known as credit auto. You are entitled to borrow up to 100% of the purchase price of the item and use the loan in order to cater to the ongoing cash flow requirements. The loan payers need to repay a constant amount over a fixed period of time.
A loan offered through a finance house for purchasing a car and another type of item is known as prêt affecte. These kinds of loans are more expensive as compared to prets personnels, while the lender might take charge, known as a gage, on the purchased items.
There is a vast range of revolving credit facilities, known as credit renouvelable/permanent, which is available through the credit card and the more prominent retail outlets. It does not offer any guarantee on a fixed rate, and hence the rate is liable to vary. The loan seekers are expected to pay a minimum of 16% pa.
Banks and down payments:
Most banks need a 20% down payment, although the banks might finance 100% of the property. Notaire fees are not financed and are not considered as the down payment. Hence, it is necessary to set aside around 7-8% in order to pay the fees that will not go into the property.
How to choose the perfect loan for you?
There are a number of loans available, depending on the needs. The loan you can acquire primarily depends on the financial situation.
Unsecured or personal loans:
A personal loan or an unsecured loan means that you do not need to use something as collateral. The lender makes most of the financial history to ascertain if you qualify and how much can be borrowed. It helps you get a good credit score and have further kept up with the debt repayments.
Secured or homeowner loans:
With this loan, you put up an asset, a property you own, and pay the mortgage like security. If you do not keep up with the repayments, it offers the lender complete authority to seize the asset, leading to you losing your home.
This is another option when you have limited or poor credit. They tend to work as a regular loan, however, with a guarantor. The guarantor promises to make the repayments if you miss paying any.
Seeking the perfect loan in France is possible, even for expats. However, you must know the type of loan that serves ideal for your requirement.
Get in touch with the branch specializing in dealing with ex-pats and loans you have been looking for. Settle for the best loan in France only after a thorough evaluation of the available loans, its types, benefits, term amount, interest rate, offers, and more.
FAQ about loans in France
If you have bad credit, the choice of attaining loans can get limited; however, you are still liable to attain loans. If the credit score is not that great, it can be tough to attain a regular loan. Keeping this in mind, acquiring a bad credit loan can be the best option.
These are loans primarily aimed at those with a limited credit history. Hence, they are a lot easier to qualify and acquire. It must be kept in mind that these have a higher interest rate along with lower borrowing limits. Hence they can be a lot more expensive.
You need to work out how much the loan will cost you to be compliant with the monthly repayments. Irrespective of whether you are looking to acquire 5,000 pounds or more, the loan calculator can help you know how much you can afford.
You can simply enter the amount, the interest rate, and the length of the span. If you take the loan over a longer-term, you must be able to bring the repayments down.