(Communicated)
To make certain projects a reality, it is possible to resort to consumer credit. These are intended for fund personal needsnotably purchase of furniture and supplies or even services.
It’s about a convenient financing solution which includes several types of credit, including the personal loan and the revolving credit. If you are interested in these two types of credits, this article makes you discover all the differences in order to make the best choice.
What is a revolving credit or revolving credit ?
Revolving credit is a money reserve that it is possible to use freely and at any time. Indeed, once the loan is granted, you are free to dispose of it as you see fit and at your own pace. Thus, it is possible touse the entire revolving credit at once for an expense or so to finance various purchases at different times.
When the lending financial institution makes the sum of money available to the borrowing client, the latter has no no proof to provide as to the use of the financing. The advantage of an offer like here is that the lender provides you with a revolving credit card to facilitate shopping. In any case, the amount available is replenished as repayments are made.
What is the personal loan ?
The personal loan is the consumer credit most used by individuals to finance all types of projects. Available in two forms, this consumer credit can be a assigned loan or one unrestricted loan.
The assigned personal loan is intended for fund a specific project the cost of which is known in advance. For an assigned loan, the lender then requires proof of the expense (quote, invoice, purchase order, etc.). Thus, as the legislation announces, the loan can be canceled or postponed in the event of non-compliance, delay on the order, etc.
THE unallocated personal credit is not intended for any particular expense. The borrower is therefore not required to provide proof at the time of the request. Regardless of cash requirements, the unrestricted loan will be an excellent source of funding.
What are the differences between personal loan and revolving credit? ?
There are a few major differences between these two types of consumer credit that you should know before choosing. The first difference concerns the duration of funds in the sense that the revolving credit makes it possible to benefit from a permanent reserve replenished with each reimbursement. Conversely, the personal loan offers a one-time reserve which no longer exists when the amount is fully used.
The duration of the loan is also a major difference. A revolving credit is renewable every year while a personal loan is limited in time. The duration of the loan is generally indicated in the contract. It is advisable to follow the news well in order to have the right information.
There duration and repayment deadlines different from one loan to another. For a revolving credit, the duration varies according to the amount, namely 36 months for a loan of less than €3,000 And 60 months for a loan of a higher amount. As part of a personal loan, the minimum repayment term is 3 months and maximum 84 months.
THE repayment of the revolving credit is variable ; it depends on the amount mobilized and is due to the depletion of the reserve. For a personal loan, the deadlines are fixed and monthly. Thus, the repayment begins as soon as the funds are made available to the borrower. Finally, the interest rate of a revolving credit is highergenerally up to 20% as it spins around 5 to 10% for the personal loan.
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