For a renovation, a car or a trip: if we are looking for a loan, we need to know how to move carefully.
Here are some tips to avoid pitfalls and identify the financing that best meets our needs.
First of all, we check that the market operator we are addressing is either an authorized bank or financial institution, or is registered in the register of credit intermediaries or agents in financial activities.
We then avoid operators who ask for a fee in advance, before the provision of a loan that may not even arrive, and we always ask for a copy of the loan agreement before signing.
To understand how much it costs a loan, we examine the items indicated in the Evolunar the European module that is delivered during the pre-contractual phase, a very useful document to compare the various loan proposals.
The TAN, the annual interest rate applied to the loan, ie the return that the bank will obtain from the loaned money, must be taken into account.
But the most indicative item is the APR, the annual percentage rate on the amount loaned, which includes all the expenses that we will have to bear: preliminary investigation (equal to 1% of the amount provided), opening of the file (for loans up to 18 months stamp duty is 14.62 euros), sending communications and possibly underwriting a loan protection policy (here the costs vary from 2% to 10% of the amount financed). The APR does not include the penalty usually provided for in the event of early repayment of the loan (variable from bank to bank but not more than 1% of the capital).
To face any purchase in installments with the necessary awareness (avoiding the risk of over – indebtedness ) and to better manage our credit and financial situation, we can turn to tools such as Advanti or Advanti 365.