My WordPress Blog Thu, 08 Aug 2019 13:09:48 +0000 en-US hourly 1 Credits to individuals: production accelerates Thu, 08 Aug 2019 13:09:48 +0000

Outstanding loans and loans to individuals continue to grow, according to the latest publication of the Francia Bank. The institution even notes an acceleration, for both housing loans and consumer credit.

A steady rise in outstanding

A steady rise in outstanding

How much is the outstanding amount of housing loans granted to individuals? According to the BdF, the market is estimated at 903 billion euros in January 2017 (out of a total of 1,100 billion euros, including consumer credits). If the amount appears both considerable and abstract, it should be known that it is increasing with a growth rate that reaches:

  • + 3.9% in November 2016;

  • + 4.3% in December 2016;

  • + 4.8% in January 2017.

Real estate loan: production is not left behind

Real estate loan: production is not left behind

At the same time, the production of new home loans amounts to 37.4 billion euros, against:

  • EUR 23.9 billion in August 2016;

  • EUR 24.6 billion in September 2016 ;

  • € 24.9 billion in October 2016 ;

  • EUR 28.3 billion in November 2016 ;

  • 33.4 billion euros in December 2016.

Note that the production of consumer credit tends to stabilize (5.1 billion euros in December and January).

Real estate lending transactions continue to climb

Real estate lending transactions continue to climb

As property rates are exceptionally low, the share of mortgage repurchases has increased to constitute more than 50% of the production of real estate loans in France. In January 2017, this type of operation accounted for 61.58% of production, against:

  • 54.89% in December;

  • 58.88% in November;

  • 53.97% in October;

  • 51.55% in September;

  • 49.93% in August;

  • 43.9% in July.

For the record, the repurchase of credit is to buy back its home loan by another bank. You benefit from the current rate conditions that may be more attractive than when you signed your original home loan.

And the real estate rate

Status quo. The average rate of loans to the fixed housing does not move (1.50%, as in December) after several months of decline. It should be remembered, however, that the BdF figures are for the month of January, and real estate rates turned upwards. A rise that should be put into perspective: the movement remains moderate and real estate rates still advantageous.

Remember to compare your mortgage insurance

Remember to compare your mortgage insurance

It is important to remember it. When negotiating or comparing home loans, do not focus solely on the interest rate. Borrower insurance is a major cost item that you should pay attention to. And to save money on your contributions while benefiting from the best guarantees, you must compare mortgage insurance other than those offered by your bank (we speak of delegation of insurance).

]]> 0
When does a resident have to pay the borrower’s debt? Thu, 08 Aug 2019 12:48:32 +0000


Sometimes you hear that a loan has been “devoured” – that is, an additional person has vouched for the borrower by pledging to repay the obligation if the borrower fails to do so. Although many people think that this is just a mere formality, such a guarantee is binding on the bank and in some situations will actually require the guarantor to pay the borrower’s debt. When does this happen?

Some loans taken by bank customers are so high and risky for the bank that they require additional collateral.

Who is a resident and what is the guarantee of a loan?

Who is a resident and what is the guarantee of a loan?

The term ” girrant ” is another term for the guarantor – that is, a person who confirms that another person applying for a loan in a bank is able to repay this loan. The guarantor guarantees that the debt will be repaid. Unfortunately, he guarantees this with his assets – if the person who is responsible for the timely settlement of the obligation stops paying the debt, the bank can expect from the ryrant that he will pay the debt.

It seems strange to many people – after all, they were not the ones who took the loan, so how can you expect them to pay off foreign debts? However, the bank was able to grant a loan precisely because of this guarantee, which becomes an additional collateral just in case. It is therefore wise to approach the issue of granting credit guarantees to other people. Of course, you also have the right to claim these debts from the debtor. Unfortunately, it is actually very difficult to recover your debts. 

What rights does the guarantor have? 

What rights does the guarantor have? 

The resident – due to the guarantee of the loan – has insight into the matter of repayment. So he can be somewhat prepared for any trouble, although life shows that most often after eating a loan, these people are no longer interested in the issue of repayment – unless it turns out that there are some difficulties with it. Of course, the citizen also has the right to obtain reliable information from the borrower about his financial situation and how the debt is repaid. On the other hand, the lender has the obligation to immediately inform the ryrant that there have been some delays in repayment or that the borrower has stopped repaying the loan at all.

In turn, when for legal reasons the resident becomes a person repaying the loan, he has the right to require the debt to be repaid. He becomes his creditor. In practice, however, it happens that people in a better financial position agree to repay the loan to a person who can no longer deal with it. Due to their relationship or friendship, they do not expect refunds later. The more seriously you need to consider your consent to gnawing a loan – it may end up paying back the loan granted to someone else, from which you will not see a penny.

This is a serious decision that the loan Penory someone falls – a corresponding amount – creditworthiness of the guarantor. The fact of granting the surety is noted in the Credit Information Bureau. 

When does a resident have to pay the borrower’s debt?

When does a resident have to pay the borrower

Since the citizen vouches for the borrower, committing to the creditor to settle the obligation, if the borrower did not do so, it means that he is exposed even to the taking of salary or real estate by the bailiff. First of all, you cannot ignore information about late payment or calls for payment – it can have tragic consequences.

It is worth to immediately go to a financial advisor or lawyer, and above all to a specific bank and familiarize yourself with the situation. There are certain situations where a resident does not have to pay back the debt – this happens when the entire liability is repaid or when the principal debtor pays the installments on time. In the latter case, you can apply for the withdrawal of the guarantee – thereby securing yourself for a possible worse period. There are other opportunities to circumvent the recipe.

It is worth to get the borrower to insure the loan, making it a condition of guaranteeing the loan agreement. The provisions in the surety agreement are also important – you can put there, for example, information about the maximum amount of the surety and possible financial liability. It is also worth ordering to enter into the loan agreement itself that the bank will first and foremost exercise its rights in relation to the borrower’s assets. Only when all possible measures have failed, will it apply for repayment by the girrant. If you do not have such collateral, unfortunately you will most likely have to pay back the borrower’s commitment…

Recourse claim – how to recover money?

Recourse claim - how to recover money?

The necessity of paying off the debt by the girrant means that he can apply for recovery of expenses incurred. This is a so-called recourse claim, i.e. a claim for the return of a fulfilled obligation, directed to the main debtor. It starts with sending a request for payment, and then – if there is no answer – you can submit a claim for payment to the court. On the one hand, many people are scrupulous about bringing such a lawsuit to a loved one, but on the other hand, it is worth deciding before getting into financial trouble on behalf of someone else.

]]> 0
Mortgage loans: low interest rates increase household borrowing capacity Tue, 16 Jul 2019 13:15:58 +0000

Current lending conditions have a leverage effect on household borrowing capacity which has nearly doubled in 10 years.

Current lending conditions have a leverage effect on household borrowing capacity which has nearly doubled in 10 years.

Real estate credit has become cheap

Real estate credit has become cheap

This is a statement that should delight the households who have plans to access the property. Their borrowing capacity has never been as high as it is now. And that’s an understatement since the indicator has grown by almost 40% in the space of 10 years, according to a brokerage professional. A notable gain that allows borrowers better access to real estate credit and reduces its overall cost.

It must be said that the period is particularly favorable for the purchase of a habitat. For several years now, interest rates, which are similar to the remuneration received by the lender, continue to fall until they reach a historic low a few months ago. In February 2019, the housing observatory is still advancing an average interest rate of 1.44% for all periods combined.

A situation attributed to the effects of monetary policy propelled by the Sentro Bank (SB) which has the will to encourage households to consume. For this, it manipulates its indicators to make loans more accommodating for borrowers. The ultimate goal is to support European economies to generate sufficiently high levels of growth.

Banks lend more readily over 25 years or beyond

Banks lend more readily over 25 years or beyond

With cheaper loans, households, therefore, borrow cheaply. This drastically increases their borrowing capacity because what they do not repay in interest becomes a supplement that they can inject into the purchase price. The lowering of rates, therefore, helps to increase the ambitions of future owners who have the opportunity to revise upward their requirements for habitat-related criteria such as the number of square meters. And this decline in the price of credit is an advantage that can also be coupled with the real estate market. If certain regions or large cities are experiencing a very strong price evolution, like Paris where some districts require an investment of more than 10 000 euros per square meter, other places are nevertheless more conciliatory.

Finally, it should not be forgotten that banks offer more flexible methods to agree to finance household real estate projects. Loans repaid over 25 years and more are becoming a standard, opening the door to low-income homeownership. In this case, the average duration of loans granted increased significantly to 230 months in February 2019, reflecting this trend. The institutions have also taken this strategic shift to finance more mortgage applications to offset the decline in their margin with low rates.

]]> 0
Securities Loan Sun, 16 Jun 2019 13:00:33 +0000

Securities Loans – A Chance and a Risk

Securities Loans - A Chance and a Risk

In the case of a securities loan, the lender’s security deposit serves as collateral. To be able to take out such a loan, the customer must have a significant securities deposit. This can be borrowed and serves the bank as collateral.

Owners of securities often use the securities loan to buy more securities. If the bank does not award it for a specific purpose, the money can be used freely.

Benefits of Securities Loans

Benefits of Securities Loans

A significant advantage is that the annual interest rate on the loan for securities is significantly lower than the lending rates for the collection or installment loan. In addition, the securities loan offers the customer flexibility, because once it has been granted, it can be used at will. The amount of the loan depends on the value of the securities account.

While the discretionary credit currently costs around 12 percent interest on average, interest rates on a dedicated loan for securities are below 7 percent in most cases.

Credit amount can be retrieved flexibly

Credit amount can be retrieved flexibly

A purpose-based securities loan is therefore an alternative to the dispo. He is equally flexible but just cheaper. Once established, the securities loan can be called up at any time if required. The securities loan is thus very well suited to bridge short-term liquidity shortages. As with the Dispo, the bank will only charge interest if the loan is actually used. Fees for the establishment and provision collect the custodian banks usually not.

The repayment of the securities loan can also be made flexible. The term is not limited. If the customer moves within the credit limit, only the agreed interest must be paid. However, users of securities loans should bear in mind that the credit line granted is not rigid. The amount of the approved framework depends on the value of the depot. If there is a turbulence on the stock market, the credit line can fall.
When determining the credit line, banks are not consistent. As a rule, the lending value of the custody account is between 40 and 60 percent of the current market value of the custody account.

If securities with a value of € 50,000 are held in the securities account of the borrower, the customer will receive a loan of € 25,000 with a mortgage lending value of 50 percent. If the prices rise, so does the credit line, if they fall, the credit line also falls.

Some banks handle the definition of the credit line so that the asset class of the securities is taken into account in the custody account. For secured investments such as bonds, the mortgage lending value is then higher than for risky investments such as certificates. Warrants are mostly excluded from the loan because of the high risk.

Falling courses and the risk for securities loans

Falling courses and the risk for securities loans

The fluctuating credit line entails a risk for the borrower that should not be underestimated. If the prices of the securities in the custody account fall, the credit line is automatically reduced. Then it can happen that a borrower exceeds the credit limit involuntarily. The danger of this happening is especially great when the frame is almost exhausted. This can be very expensive for the customer. Not only that its depot loses value. There are also overdraft rates to pay for the loan, which are often twice as high. In addition, the Bank is entitled to require the Client to sell part of the loaned securities in order to settle the account. Since this happens at falling prices, high losses are inevitable.



A security loan can always be used as an alternative to the disposition credit if a securities deposit exists. The securities serve as collateral. That’s why the loan is cheaper.

The disadvantage of the securities loan is that there is an inadvertent overdrawing of the credit line when the prices of the loaned securities fall. This may result in the payment of high overdraft interest or, in the worst case, a distress sale of the securities being lent. Due to the significantly lower interest rates, the securities loan represents a sensible alternative to the discretionary credit in order to bridge very short-term liquidity bottlenecks. Who plans a long-term rescheduling to replace the Dispo, should check whether this project with a installment loan cheaper and safer to implement.

]]> 0
New cars largely financed by credit Fri, 14 Jun 2019 12:49:31 +0000

Auto credit accounts for 70% of new vehicle financing. Leasing and long-term leasing is nibbling more and more market share.

Auto credit accounts for 70% of new vehicle financing. Leasing and long-term leasing is nibbling more and more market share.

The average price of new cars up

The average price of new cars up

With more than 38 million vehicles registered in 2016, the French car fleet is continuing its expansion momentum. The car has become indispensable for the citizens of the Hexagon and in particular for the workers. Indeed, unless you work in an urban area well served by public transport, the car can bring rural areas closer to cities. But the cost of acquiring a car remains an important budget. Whether it’s for a student, a young worker or new parents, buying a new or used vehicle is a huge expense.

Yet, the French buy cars that are worth more and more expensive. In 2015, the average price of a new car was 25,108 euros, an increase of 27% over the previous year. Since not everyone is able to pay for a new car for cash, there are financial alternatives to cover this purchase. The loan for a car or car loan is the solution widely used by the drivers of the Hexagon.

Classic credit, leasing, LLD: every driver financing

Classic credit, leasing, LLD: every driver financing

According to a recent study commissioned by car manufacturers, the French resort to auto credit for 70% of new vehicles for individuals. If the loan is mainly used, it still knows a loss of speed. Indeed, the conventional formula of the car loan is seen more and more competed by the new modes of financing that are the LOA and the LLD. Lease with option to purchase (LOA) and long-term leasing (LLD) are a real success with the 40 million motorists in France (respectively + 18% and + 26%).

Although these are two forms of credit, the LOA and the LLD do not have the same purpose. At the end of LOA contract, the tenant can buy his vehicle, which however is not possible with a long-term lease. Despite this, 62,000 vehicles have been sold in LLD since the beginning of the year. For the LOA, the study counts 100,000 new cars. Between car loans, long-term leases and leased purchases, motorists are now spoiled for choice to drive a vehicle that meets their expectations.

]]> 0
How do you get a payday loan? Check what you have to do Sat, 25 May 2019 13:05:15 +0000

A payday loan is a type of loan that is fully paid to the borrower in cash. Sometimes it is also colloquially called a payday loan, although a loan differs a lot from a loan. Until recently, getting a bank loan was quite difficult. At present, bank payday loans are no longer subject to so many formalities and conditions. What exactly do you have to do to get it?

First of all, the loan is granted only by the bank and only for a specific purpose. The loan can be taken anywhere and for any purpose that you do not need to tell the lender about. A payday loan is also called – and aptly – a consumer loan. It is used for various purposes, for example, buying some household appliances when it breaks down. 

A payday loan or cash loan?

A cash loan loan or cash loan?

People who need cash can opt for a payday loan or payday loan. It is much easier to get a loan – all you have to do is choose any non-bank company, apply online and wait for response. In some cases, the money goes to the account in a few or several minutes. So when someone cares about time, he chooses just such an option. It is also a good solution for those who are looking for a loan without a Retro because they are already in debt or have a bad credit history. However, a bank loan can be spread over more installments and is usually at a lower interest rate . 

Who can apply for a payday loan?

Who can apply for a cash loan?

All adults who have full legal capacity and who have creditworthiness can apply for a payday loan. It depends on this ability whether the bank’s decision will be positive or not. Creditworthiness simply means that the potential borrower is able to repay the liability. This means that it is credible to a bank that does not risk too much by giving it a loan. The creditworthiness is primarily influenced by the type of contract you have at work, which affects your job stability, but also – and perhaps above all – your salary. It is not necessary to work under an employment contract for an indefinite period.

In other cases, however, the bank may require certificates from the workplace, and certainly earnings certificates, if you do not have your bank account to which the salary is transferred. A person who is credible to the bank under a different account – a good credit history – can also apply for a payday loan. If someone already has a big debt on their mind, or, for example, did not pay their financial obligations in a timely manner, they will have trouble getting a payday loan from the bank. The company will be afraid that the situation will happen again – and there will be problems paying back the new commitment.

How do you get a payday loan?

How do you get a cash loan?

There are different types of loans , with payday loans being the easiest to get. You do not have to be afraid of numerous formalities and repeated visits to a bank branch, as is the case, for example, when taking out a mortgage. To get a payday loan, you only need to bring your ID card and income certificate.

You must also complete the appropriate credit application by entering all the important information there. If the credit decision is positive, all you have to do is sign a loan agreement. Of course, before signing it, you should read each entry carefully so that nothing will surprise us later. All possible doubts should be clarified at this stage. 

How to increase your credit standing?

How to increase your credit standing?

Since getting a loan depends on a particular person and his creditworthiness , it is worth taking care of that ability before filling out the credit form. First of all, it is worth paying off all other loans if possible. If not, simply remember to pay your installments on time. Another issue is to stabilize your material and professional situation. If someone is considering a change of job, it is better to do it after taking a loan, because despite the small amounts that the bank borrows with a payday loan, always takes into account professional stability.

If someone is only working for a trial period in a new place, they are unlikely to be credible to the bank. Banks can also check not only the client’s income, but also their expenses. If you have an account with the same bank, the employee granting the loan can check the settlements of the last months. Therefore, it is worth refraining from excessive expenditure, if possible. We do not spend a salary on a penny, because the bank may then decide that the client will not have anything to pay off the liabilities.

]]> 0
How to Perform Your Comparative Credit Fri, 24 May 2019 13:44:01 +0000

Throughout our lives we can borrow money, whether it’s to buy a car, buy a house, do some work, or even finance personal projects such as travel or a wedding. Indeed, the use of credit is increasingly used because rates are always more interesting, and we do not always want to tap into our savings, if we have. There are a large number of different credits and a multitude of players on the market offering these offers of credits. fleshes this out

With credit comparisons, we no longer need to spend hours studying offers on the internet, or multiply appointments in bank branches. The credit comparison is our best ally to save time and find the best credit offer in a simplified way. The comparison is fast, simple and free.


The comparative credit: How does it work?

The comparative credit: How does it work?

Many credit companies exist on the market, offering different offers. It is therefore important to compare the offers of credit to find the most interesting for you, and the one that will best meet your expectations and your needs. Credits, depending on their nature, may be granted by traditional banks, credit institutions, but also by companies present on the internet, specialized in consumer credit.

There are also several credit formulas, depending on your projects:

  • The mortgage
  • Auto and motorcycle credit
  • The credit for works
  • Personal credit to finance leisure
  • Cash personal credit

Interest rates and terms of repayment are important criteria to take into account when comparing personal credit offers, which you can view with your credit comparison.
In order to obtain a comparison of credits, it is necessary to use a comparator, which is a tool dedicated to the comparison of credits of all kinds. Just enter several information in the comparator to get the offers. You will be asked for the following information:

  • The nature of credit (car loans, real estate loans, personal loans …)
  • The amount you want to borrow
  • The duration of the credit
  • Some information about you and your professional situation.


What to compare?

credit loan

Several criteria are to be taken into account and to compare to choose your loan thanks to the comparative credit:

  • The interest rate of the loan
  • The duration of the loan
  • The cost of insurance
  • The total cost of credit

The credit comparison allows you not only to save time but also to save money, thanks to the comparative credit made. One of the key criteria in choosing a credit is its overall cost, which will be calculated using the APR, which includes all credit charges. The comparator allows you to make comparisons of credits, and compare the cost of several credits online, to opt for the cheapest credit.

Regarding the rate, it is important to distinguish the posted rate, which can be called the TNC (the Conventional Nominal Interest Rate), which can be tempting, and the APR, the Global Annual Effective Rate, which gives it a accurate indication of total credit, including insurance. Indeed, the lower the interest rate, the less your personal credit will cost you money.
The bank or credit institution will have to offer you monthly payments that do not exceed 33% of your income. This percentage corresponds to the debt ratio.
Your comparative credit will allow you to compare the essential points of your future credit:

  • Global Annual Effective Rate (APR): it gives a vision of the total cost of the credit, taking into account the interests, the fees of the file as well as the insurance.
  • Bank charges: They vary from bank to bank, some banks will charge fees, and other banks will offer you.

Banks may also have some benefits such as a free credit card

Banks may also have some benefits such as a free credit card

The comparative credit also makes it possible to compare the advantages of each credit and of each bank or credit institution. For example, certain financial institutions may offer you some flexibility regarding your monthly payments, such as the possibility of postponing a monthly payment in the event of a hard blow, or of revising monthly payments downward or upward. It is important to note that the longer your monthly payments, the longer your personal credit will last, and the higher the total cost of credit.

Insurance is also an important element of your future credit, and it is also possible to make a comparison of insurance online, via an insurance comparator. Depending on the type of credit desired, the bank or lending organization may ask you to take out compulsory insurance.


How to make a comparative credit?

loan credit

In order to compare the different offers for your credit, simply enter in the loan comparator tool, some information about you and about your project to know:

  • The type of loan desired,
  • the amount of credit desired,
  • The purpose of the loan
  • the duration of the loan

Once all this information is entered, the comparator can offer you several offers, the most advantageous rates, at the highest interest rates. Of course, the credit rate is not the only criterion to be taken into account, it is also necessary to compare the various expenses of each bank or credit institution.


Your guarantees must be solid to obtain your credit

Your guarantees must be solid to obtain your credit

Once you have chosen the most advantageous credit offer,just make a loan application, which you can mostly do online. The bank or credit institution will ask you to provide certain supporting documents, such as a photocopy of your ID, your latest pay slips, proof of address, your latest tax notice, and your latest bank statements. .

Your guarantees must be solid to obtain your credit, that is to say that you will have a stable job, good income and regular, have a good capacity for savings, and not be stuck at the Bank of France. The bank or lending agency will also verify that you have not exceeded your authorized overdraft.

]]> 0
Repurchase of credit over 25 years Thu, 23 May 2019 13:23:04 +0000



Get a reduction in your monthly payments and reimburse your new monthly payment over 25 years (300 months).

Get a reduction in your monthly payments and reimburse your new monthly payment over 25 years (300 months).

Repurchase of credits over 300 months

Consolidation of loans makes it possible to reduce the amount of its monthly payments in favor of a single credit based on a rescheduled repayment period: 25 years for example. It is possible to collect loans of various kinds (consumer loans and/or home loans) and this formula is intended for homeowner borrowers. The duration of the redemption of credits depends on two major elements: the amount of loans to be repurchased and the capacity of repayment of the household. The aim of the funding is to reduce the household’s monthly debt ratio, the duration must be consistent and must make it possible to rebalance the budget (expenditure/income).

Several elements can have an influence on the repayment term, even if the objective for the borrower is to leave on a repurchase of credit over 25 years. The rate, the debt capacity and the amount of a possible new project are three elements that can affect the repayment period, it is for this reason that it is recommended to carry out a simulation of loan consolidation in order to know the feasibility over 25 years of repayment. During an analysis, the analyst is responsible for respecting the wishes of the borrower while proposing a suitable solution, in accordance with his duty to advise.

Simulation of a 25-year credit redemption

Simulation of a 25-year credit redemption

The feasibility of a loan consolidation project can be simulated for free and without online commitment. Just fill in the simulation form and validate it. The result of the simulation allows you to preview the amount of your future monthly payment. It is essential to capture the right information in order to obtain a result that is as close as possible to reality. Only a study by an expert analyst (also free) will confirm this result.

  • Repurchase of credit over 24 years
  • Repurchase of credit over 26 years
]]> 0