Depreciable loans: all the information on the regulations

This post contains the general banking terms and conditions related to depreciable credits.

In the category of personal loans are present the loans of money whose object of the work or the auto loan, but also the repurchase of consumer credit and the regrouping of mortgages, etc.

Consolidation of consumer credit and other personal loans

Consolidation of consumer credit and other personal loans

Conditions for early repayment of consumer credit redemption

Conditions for early repayment of consumer credit redemption

The combination of fixed rate consumer credit and other depreciable personal loans are repayable in installments over time for a period of time, or may be settled by full or partial prepayment.

The lending institution is able to demand an early repayment indemnity (ARI ) if the borrower undertakes the action to repay its loan repurchase early, and if the remaining capital of the is greater than ten thousand euros (€) during a period of twelve months:

  • The sum that can be requested by the bank is 0.5% of the outstanding capital (CRD) if the amortization period is less than one year.
  • the early redemption fee is 1% in the opposite case, ie for a payment period longer than 1 year.

However, it is certain that the amount owed can not exceed the sum of the interest due that the debtor would have paid to the creditor between the date of the early repayment and the end date of the contract. Of course nothing is owed by the contractor (s) in case of coverage of borrower insurance cover.

Financial Incidents and Compensation in the Event of Borrower Default

Financial Incidents and Compensation in the Event of Borrower Default

In the case of unpaid debtors, the creditor may initiate the instant repayment of the outstanding capital, plus any interest due but not paid. It should be known that as long as the debt is not paid in full, the amounts due generate late interest at a rate equal to that of the loan.

Grouping of variable rate mortgages

Grouping of variable rate mortgages

Conditions of early repayment of home loan repurchase

Conditions of early repayment of home loan repurchase

In the case of an advance balance on the part of the borrower (s), the conditions for early repayment of a home loan are outlined by the respect of a minimum amount of the payment made which must be at least equal to 10% of the initial amount of the loan.

In the case of a partial early repayment, it is the duration of the credit which decreases, and the monthly payments remain unchanged. The debtor (s) are sent by their creditor a new amortization table indicating the new characteristics.

When it comes to repaying a loan whose applicable regime is that of the mortgage then:

  • The amount of the IRA received is equal to six months of interest on the principal remaining due, at the average loan rate.
  • However, the compensation can not exceed three per cent maximum of the CRD according to Article R 312-2 of the Consumer Code.

Failure to pay and compensation in case of customer insolvency

Failure to pay and compensation in case of customer insolvency

If the subscriber (s) come not to honor a plurality of deadlines related to the real estate previously proposed, then it can ask what is called the lapse of the term!

This means that whoever lends money claims the full amount of the remaining money owed, and that immediately on the spot. Generally this action is initiated by the lender because the client (s) do not respect absolutely the conditions fixed by the contract signed between the two parties.

In the same way as the consumer scheme, a compensation indemnity for the mortgage loan repurchase agreement is claimed, amounting to 7%.

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