Taking out a loan commits you, but also gives you rights. You should know these if you are interested in credit. The legislator has in fact defined clear directives regarding the granting of credits, repayment options and the absence of costs.
What is a private loan?
Private credit helps overcome temporary financial difficulties, adapt to a new life situation or carry out personal projects. Typically, a loan is repaid in the form of monthly payments, with the lender receiving interest for the money loaned. Private loans are often also called consumer loans, personal loans, cash loans or loans.
Duty of information in the event of a credit request
To be able to grant loans responsibly, the lender must ensure that he has all the important information about you, your financial situation, your income, and your job. So, in addition to your income, your fortune, and your existing commitments, he is interested in the amount of your rent, your taxes and your other fixed costs.
It is therefore on the basis of these data that it calculates whether the private credit requested is bearable and reimbursable. The lender thus assesses the creditworthiness ( credit capacity and good repute) of the applicant, which can also have an influence on the level of the rate.
Maximum credit amount
According to the Federal Consumer Credit Law (LCC), a lender can only grant credit when the credit taker is able to repay the amount of the credit within 36 months. The LCC thus protects consumers against over-indebtedness and hastily concluded loans. This law also applies to credit cards, customer cards, leasing contracts and advances on current accounts.
The calculation base of 36 months also remains decisive when the effective duration of the credit is more than 36 months. In the event of a shorter term, the lender checks whether the monthly charge is bearable for the loan taker.
Repayment of monthly payments
In principle, the repayment bands chosen for your private credit should not be too high. In fact, if the monthly payment cannot be paid, you risk having to pay default interest. To avoid this problem, Classic offers you the possibility of deferring the payment of your monthly payments twice without cost during the term of the contract. Regardless of this, the credit taker has the right to repay more than the agreed amount at any time.
The legal waiting period in case of the credit
By law, the loan taker must wait 14 days before the payment of the credit amount. During this time, the credit taker can terminate the credit contract without interest, even if the contract has already been signed. The purpose of this waiting period is to protect the loan taker and to prevent rash borrowing. If a lender promises express or immediate credit without a waiting period, caution is advised.
Termination during the term of the contract
Contrary to what happens in the case of a mortgage or leasing, an early exit is possible at any time in the case of a private loan. The lender can thus draw up a final statement to the credit taker when the latter wishes. No other interest is due for the amount reimbursed prematurely. With Fine Bank Classic, there is also a reimbursement option that goes even further.