Consumer credit is generally distinguished between
Posted: Mon Jan 06, 2025 4:05 am
For the first type, the loan is used to finance a specific project. It cannot be diverted from its previously determined purpose. On the other hand, for the second, there is no predetermined purchase. The borrower therefore has complete freedom to use the money received.
What is the cost of consumer credit according to LCL?
For the borrower, the total price of the loan takes into account the interest partners email lists rates applied to the consumer loan and other costs (application fees, insurance and others). Generally, two types of interest rates are applied to the loan:
The debit rate which forms a basis for calculating the amount of interest.
The annualized percentage rate that takes into account all social charges required to benefit from the credit. In the case of a consumer loan, this is essentially the application fee.
The lender has the free choice for determining the consumer credit rate. However, its real annual rate must not exceed that of usury. It must remain within the law by taking into account the maximum determined every three months by Banque LCL.
In addition, LCL will take the time to check whether you have the financial capacity to repay your loan. For this reason, you will be asked for certain information concerning the amount of your income and expenses.
What is the cost of consumer credit according to LCL?
For the borrower, the total price of the loan takes into account the interest partners email lists rates applied to the consumer loan and other costs (application fees, insurance and others). Generally, two types of interest rates are applied to the loan:
The debit rate which forms a basis for calculating the amount of interest.
The annualized percentage rate that takes into account all social charges required to benefit from the credit. In the case of a consumer loan, this is essentially the application fee.
The lender has the free choice for determining the consumer credit rate. However, its real annual rate must not exceed that of usury. It must remain within the law by taking into account the maximum determined every three months by Banque LCL.
In addition, LCL will take the time to check whether you have the financial capacity to repay your loan. For this reason, you will be asked for certain information concerning the amount of your income and expenses.