What is consumer credit? Consumer credit means any credit that is, in principle, contracted for the purchase of property other than immovable property. This may include purchasing a new car or a household appliance. However, people can also take out a loan to finance home renovations, a wedding, etc.
Consumer credit is strictly regulated by federal law. MaxLend Loans provide this type of loan at very reasonable rates.
Are there different forms of credit?
Yes, there are four forms of consumer credit.
- An installment loan is a sum of money made available for an unspecified service or purchase. This loan is for a fixed term and must be repaid through regular, fixed payments (usually monthly).
- Installment sales are for the purchase of a specific asset or for the payment of a specific service. The amount borrowed is repaid in installments, usually monthly.
- A finance lease allows people to rent property (computer, car, etc.) for a fixed term. At the end of this rental period, they have the option to purchase the property for the price set at the time of the conclusion of the contract.
- Credit Opening is a financial reserve that people use according to their needs, whether associated with the use of a credit card or not. This can take the form of a debit balance authorized on an account, etc. Interest on this loan must be repaid periodically, and different formulas are possible for repayment. However, there are maximum delays before the full amount must be repaid.
Whichever form of credit you choose, the maximum time limit for repayment is legally limited depending on the amount borrowed.
How does a personal loan differ from an installment loan?
The personal loan is made up of a capital corresponding to the sum loaned to carry out a project. The repayment is always monthly, and the interest rate is often based on a timetable. The period during which the funds are made available is determined at the time of signing the contract.
The repayment of installment loans applies to everyone, and it doesn’t matter what tax bracket you are in. In addition, it can be made without collateral if it is less than a certain amount. This provides a solution to those in need and also mitigates the risks of over-indebtedness.