On what concrete basis is the rate of a personal loan calculated?

Unlike the earmarked loan, which is used to finance a specific project or service, the personal loan leaves you more leeway in its use. You are free to use it as you see fit. This type of installment credit does not require you to justify its use when requesting it. This is called an unrestricted loan since you can use it freely.

How to define the personal loan?

How to define the personal loan?

The amount you can have as part of a personal loan generally ranges from 2,500 USD up to 100,000 USD. Note, however, that you must tell the bank the reason for the request. If it is to finance a project, an event like a wedding for example, you have a serious asset in the sleeve to collect the loan.

Your only limit will surely be your repayment capacity. It is she who will determine your ability to borrow the amount you request. This type of loan is classified as unsecured credit. Indeed to have it you do not need a mortgage, or any other legal guarantee. The risk of non-repayment is therefore high with this kind of loan, which implies that the interest rate which will be offered to you will therefore be higher compared to those of other affected installment loans.

What are the factors that determine the credit rate?

What are the factors that determine the credit rate?

In most banks, the rate depends mainly on the amount you ask. But not only: the use of credit, the repayment period also serve to fix your monthly payments. If you are lucky and your file is very solid, you may benefit from a preferential rate.

And the conditions for obtaining this preferential rate are many and varied: for example, you must have a debt ratio of less than 30% with a living amount ranging from 1500 USD if you are alone at 2000 USD for couples. You must in no case be registered with Cream Bank. This last condition is valid for all types of credit.

It is to calculate all this that online credit simulators exist. Indeed these tools detail all these figures in a flash. The simulation will tell you precisely compared to the amount requested: the amount of the monthly payments, the interest rate of the credit and finally the total cost to be reimbursed. The credit simulation is available online to all those wishing to apply for credit.

Do not hesitate to compare several offers at the same time. Indeed it is by playing the competition that you will manage to have a loan with the best possible rate. Especially when you are negotiating your loan, the results of your comparisons can be used as an argument to convince the bank.

Beware also of the additional costs of the credit. Indeed, applying for and obtaining credit also requires a sum that you must imperatively take into account.


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