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Agreed loan without means test

The Convened Loan (PC) is a loan that offers you to finance the acquisition of your property without any means test. It is granted by all banks or financial institutions having previously signed an agreement with the State. Subscribing to this loan gives you access to personalized housing assistance (APL) granted by the family allowance fund.

What operation can we finance with this type of credit?

credit loans

Like other real estate loans, the approved loan can finance all the operations of acquisition or construction of a real estate property provided that it is intended for the purchase of a main house.

The approved loan can cover up to 90% of the total cost of your purchase. In order to form your personal contribution and complete the balance of your financing, this credit can be combined with other loans.

How long to choose?

You can choose a duration that suits your goals. If the loan is intended for the construction of your land or the acquisition of new or old housing, you can spread your monthly payments over a period of 10 to 25 years. If it is intended solely for the redevelopment of an already existing property, the duration of the loan can vary between 5 and 15 years.

Which rate to choose?

The loan approved can be contracted at a fixed or variable rate. It is capped and its value depends on the lending institution. Generally, it is between 5.80% to 6.50% in the case of a fixed rate, and from 4.95% to 5.50% for a revisable rate.

What are the advantages of an approved loan?

The rate offered by the loan agreed ahead of that offered by conventional banking products, however several advantages encourage the borrower to use it:

  • It is granted to households without any means test.
  • It provides access to personalized housing assistance
  • It allows you to benefit from certain tax advantages if your acquisition is new.
  • It allows you to accumulate loans to finance the total cost of your project without worrying about any fees.

Are there conditions to contract the loan agreement?

Obtaining this loan is subject to several criteria concerning your property.

  • The funded residence must be used as primary housing.
  • This residence can be occupied by yourself or your spouse, or your ascendants or descendants or those of your spouse.
  • The area of ​​the property must meet the habitability standards according to the composition of the home and the type of property.
  • The price must not exceed the ceiling fixed according to the geographical area.
  • In the case of construction of a detached house, the work must not exceed a period of 3 years maximum.

Can it be combined with other loans?

The approved loan can be supplemented by other types of loans such as the 0 rate loan, the housing action loan, the housing savings loan, the civil servant loan, the bridging loan, etc.

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Relay loan: operation, risks and particularities

Short-term credit, the bridging loan helps the individual to make the link between a property to sell and a property to buy. The bridge loan is an aid in a sometimes delicate transition period. There are several bridging loans and each of them adapts to a specific situation. It is nevertheless advisable to know all the characteristics of the bridging loan, which costs money and which commits you, since as the name suggests, it is a loan!

What is a bridging loan?

A bridging loan is used when you buy real estate, but you still haven’t sold the one you own. If in absolute terms, it is better to sell your property in order to have the corresponding sum, then buy another, on a daily basis, it is not always easy to make the sale of a property coincides with the purchase of another. The bridging loan is there to help you during this transition period.

It represents a solution and helps to overcome cash flow problems between the time you sell your home and the time you buy another. Granted for a few weeks or a few months, the bridging loan generally does not exceed 24 months.

The different types of bridging loans

bridging loans

There are 3 different types of bridging loans, namely:

The bridge loan with total deductible

Designed to lighten your expenses during the entire period when your property is not sold, this type of bridging loan is granted for a maximum duration of 24 months. Generally, the bridging loan with full deductible is intended for owners wishing to borrow an amount greater than the value of their property for sale.

As the name suggests, the total franchise bridge loan comes with a total franchise period of up to 12 months. It is also accompanied by an amortizable credit. Here, interest is therefore not reimbursed monthly, but in one installment. If the owner sells his property before the end of the 12 months, he will have to repay the capital as well as the interest due.

The bridging loan backed by an amortizable loan

Also called an “associated loan”, the back-to-back bridging loan is for owners who wish to buy a property whose price is more expensive than the one they put up for sale. Most often, the back-to-back bridging loan is coupled with a conventional mortgage, repayable for future housing.

The price of this bridging loan is set between 50% and 70% of the price of the property offered for sale and therefore acts as a supplement. While waiting to sell his first property, the owner pays the interest on his bridging loan as well as the monthly mortgage payments. Before committing to a back-to-back bridging loan, you should carefully check your debt capacity.

The dry relay loan

The dry bridging loan is intended for owners whose value of the property for sale is equivalent (or lower) than that of the property to buy. It is very often used by seniors who change their accommodation. Here, you will not need an additional loan. The dry bridge loan offers you the possibility of advancing the funds for your new purchase and it will allow you to have no prepayment penalties.

With a dry bridge loan, you repay the bank, either by paying the capital and the interest once the sale of your current property is finished, or by paying the interest as soon as the loan is signed and you will pay the capital after the sale . The dry bridge loan is considered a short-term advance, between 6 and 12 months.

What is the cost of a bridge loan?

credit loan?

For each type of bridging loan, do not forget to add the guarantee costs (such as the mortgage), borrower insurance costs, application fees, notary fees and prepayment fees (IRA)), except for the dry relay loan. The mortgage rate itself depends on your banking establishment and current trends.

In terms of loan amount, the bank will grant you a bridging loan depending on the amount of the property put up for sale and will generally lend you between 50 and 70% of this amount, or even up to 80% for certain banking establishments.

In addition, there are interim interests that represent the remuneration of your bank in exchange for the provision of your bridging loan. The rate of these interim interest is most often the same as the mortgage rate. If the loan is granted at 2%, the interim interest will therefore also be 2%. Finally, it should be noted that the interest rates for the dry bridge loan are higher than for the other two types of bridge loans.

Risks related to the bridging loan

credit loan

The risk most often encountered remains the fact of not having successfully sold your property at the end of the bridging loan. In this case, the borrower will not be able to repay his bridging loan. He will then have to renegotiate with the bank either to extend the initial bridging loan, or to transform it into conventional long-term credit, and will have to pay the remaining interest due.

Another risk is then to sell your first property much cheaper than the market price so that you no longer have to pay the monthly payments on the bridging loan. This solution may unbalance your budget.

Finally, you must not forget the daily stress, the bridging loan can be difficult to live with, because it represents a real “sword of Damocles” above your head.

Bank loan: what alternatives to the bridge loan?

Bank loan

As a little-known device, the repurchase bridging loan or “resale repurchase” loan proves to be a real alternative to the traditional bridging loan because it offers a lower debt ratio. The principle remains simple since the borrower has his already existing home loan repurchased by another banking establishment, an establishment which will offer him a new credit integrating both the monthly payments remaining due from his old credit and the financing of his new real estate. Thanks to this, the borrower will benefit from only one line of credit, and at a single interest rate. This monthly payment may be smoothed depending on the resale of the first property.

However, it will be necessary to be careful, because overall, and even if the debt ratio is lower, this formula will cost more.

Finally, there is an alternative to the more original bridging loan, which consists of selling your property to an express real estate agency. Mainly active in Île-de-France, this type of company makes an offer to purchase in 48 hours after the appraisal. The express real estate agency does not have the same right of withdrawal as an individual and therefore cannot request the cancellation of the sale.

The offers from express real estate agencies correspond to the market price deducted from fees slightly higher than those from a traditional real estate agency. The sale is completely secure and avoids taking out a bridging loan.

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Business

Credit rejection for “business reasons”

Equity is in the green, cash flow is positive, the company is profitable. Adequate guarantees are also available. The credit check, you think, is a formality. But then comes the hammer: “We regret to inform you that the bank is rejecting your financing application.”

Upon request from your corporate client advisor, you will learn that “business reasons” were the decisive factor. Business reasons? What is behind this opaque notion of everyday life?

Banks regulate their lending policies in their credit policies and guidelines. It shows who is responsible for the lending process, which criteria have to be checked and when a loan is to be rejected in principle. Basically, the larger the requested amount, the higher the level at which the loan decision is made. Both quantitative and qualitative factors are checked. The quantitative factors are based on the company’s key figures and the credit history. They are of the greatest importance in the credit check. However, the qualitative factors should not be underestimated, as they allow considerable discretion.

No loans to high-risk industries

There are also tough exclusion criteria that differ depending on the bank and branch. For example, some banks refuse to finance certain investment properties or types of projects. For example, they do not grant property developer loans or finance merger and takeover projects. Many financial institutions also generally exclude certain industries from lending. Above all, the following are affected:

  • Arms manufacturers and dealers
  • Gambling operators
  • the red light environment
  • Industries in which environmental or human rights standards are frequently violated

Regional restrictions

credit restrictions

Other sectors of the economy that banks regard as particularly risky are also excluded from lending. The industry-specific exclusion criteria may change depending on the bank’s assessment and the current economic situation. Some of them only apply to certain regions. There are regional restrictions in particular at the savings banks and some cooperative banks. Due to the regional principle, they are not allowed to lend to companies outside their sphere of activity. For many banks, lending to foreign investors or foreign-controlled companies is a no-go.

Risk limitation through limits

credit limits

In addition to absolute exclusion criteria, financial institutions check compliance with certain limits. They link their acceptance or rejection to the amount of the financing, the loan term and the own funds used by the customer, whereby they differentiate according to the type of project or investment object. They are typically more generous with existing customers than with new customers. Sometimes the opposite is the case. The banks take into account the entire credit exposure to a customer when checking their credit. If this is already large, the overall risk with an additional loan might exceed the tolerance threshold.

Great discretion

credit problem

The criteria mentioned are more or less understandable for the customer. They can be found in the credit principles and guidelines. However, as I said, the lending process also includes considerable discretion. Not all banks or branches have specialists who are able to understand innovative projects or business models. The risk assessment is correspondingly different. There are also major differences in the valuation of property, plant and equipment, provisions, extraordinary income or off-balance sheet financing. The valuation differences for intangible assets such as brands, patents or licenses are particularly large.

Request multiple banks

Request multiple banks

What does this mean for medium-sized companies that need a loan? Putting your head in the sand and accepting the decision-making power of the house bank? On the contrary! Finally, the different business policies of the banks also have their advantage. If one institution refuses to fund a project or investment, there is most likely another that willingly approves the loan. It is therefore worthwhile to ask for more than one bank for financing right from the start. This increases the likelihood of receiving a promise. With several offers, this procedure also enables a comparison of the conditions.

Favorable credit conditions thanks to Clearfund Finance

Favorable credit conditions thanks to Finanz.com

Moneyrate Finance makes loan comparison easy. All you need to do is upload the relevant documents (business evaluations, annual financial statements, total and balance lists) via our online portal. Our specialists will take care of the rest. You send your request to a network of over 230 financing partners and then submit the best offers. In addition to corporate loans, we also provide alternative financing solutions such as subsidies, factoring, leasing, goods or warehouse financing.

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Home loan: how to take advantage of the loan insurance delegation

The French seem to know and understand the value of the annual termination of borrower insurance. If the reform is expensive for the banks, it is however advantageous for the individual who can hope to save up to 10,000 dollars. Our 3 tips to enjoy it.

The principle of annual termination of home loan insurance allows the borrower to revise his contract on each anniversary date to benefit from more extensive guarantees or save money.

Nearly 80% of owners are aware of the mortgage loan insurance delegation

home loans

The study carried out by Magnolia.fr in spring 2018 revealed that 79% of owners knew about the insurance delegation, while a previous survey dating from November 2017 indicated that only a third of these same owners were aware of this opportunity. You should know that on January 12, 2018, the Bourquin amendment was validated by the Constitutional Council and the media coverage of the subject allowed the insurance delegation to be known to a wide audience. Indeed, the Magnolia poll states that 78% of those polled learned about the possibility of termination through the media, 16% through word of mouth and 6% through their banker.

It is not certain, however, that the French will make massive use of this practice because among those who know the loan insurance delegation, more than half of the people questioned declare that they do not know how to do it. And almost 20% of French people still ignore this possibility. Result: in 2019, “85% of the market is still monopolized by the banks, leaving only 15% to non-subsidiary insurance of banking groups” underlines Magnolia who indicates that it will take many more years before this becomes a reflex.

The borrower insurance delegation saves up to 10,000 dollars on its credit

The implementation of the Bourquin law offers more freedom to borrowers. Indeed, the latter can negotiate and change mortgage insurance every year, on the anniversary date of their contract, by playing the competition. Several brokers estimate that by taking out individual loan insurance, borrowers can hope to save up to 10,000 dollars.

The only downside: the difficulty for individuals to identify the anniversary date of their insurance contract. Bourquin law clarified the situation by fixing the anniversary date of the signing of the loan offer by the borrower as the sole maturity date. But the borrower can also choose another date appearing on his insurance contract. In this case, this new definition of the due date must clearly appear on the notice given by the lender to the borrower. But the Bourquin law goes further still: it indeed reinforces the system of information of the borrower of his right of termination and of the deadlines which he must respect to make use of it. And if the insurer fails to fulfill its information obligations, the sanctions are also reinforced. Finally, the Bourquin law also provides that insurers who refuse a request for substitution of insurance presented by a borrower must imperatively communicate to the borrower all the reasons for refusal and specify, if necessary, the documents missing which would allow his request to be accepted. Harmonization and simplification which made it possible to clarify the situation and limit the delaying tactics of the banks, which were based on the vagueness surrounding the date on which the insurer could take out a new contract to refuse requests for delegation of insurance .

Termination mortgage insurance: a reform that costs the banks dear

Termination mortgage insurance: a reform that costs the banks dear

Banks are the first to be impacted by the principle of annual termination of borrower insurance. In three months, during 2018, they saw a large number of policyholders seduced by the attractive prices offered by certain insurers. The founder of the loan insurance broker “Réassurez-moi”, Antonette Lucard, says that nearly 300 million dollars in insurance contracts have been withdrawn from banks and renegotiated with other insurers.

3 tips to take advantage of the loan insurance delegation

3 tips to take advantage of the loan insurance delegation

Thanks to the insurance delegation, the borrower can save several thousand dollars on the total cost of his mortgage. But how can you take advantage of this new measure?

Use a mortgage loan comparator dedicated to your profile

By using a free and non-binding online comparator, borrowers will be able to find an offer suited to their profile and at a lower price. These easy to use tools take into account your situation, your needs but also your budget.

Choose a borrower insurance with equivalent guarantees

To make the right choice among the offers offered, you must ensure that the guarantees between the group contract taken out with your bank and the desired insurance contract are at least equivalent. Indeed, this is a sine qua non condition for your delegation of insurance to be accepted.

Use the standardized information sheet (FSI) before any new insurance contract

Before taking out a new insurance contract, take the time to compare using the ISP. This document must be given to individuals who receive a loan offer. The standardized information sheet details all the guarantees contained in the loan insurance offer issued by the bank.

If customers can hope to make substantial savings through the annual termination of borrower insurance, individuals also have the option of adjusting their rates to be better insured. To change insurance, the individual can carry out the procedures himself but also be accompanied by a broker.

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Business

Credit for secondary businesses

Anyone who needs a loan for a secondary business is usually still in a permanent employment relationship, which is based on either a part-time or full-time contract. The higher the earnings in regular employment, the better the chances of getting a loan to finance acquisitions for the secondary trade.

Anyone who needs a loan for a secondary business needs a business plan

Should the secondary trade become the main source of income in the near future, the financing bank needs the same documents as for a loan that is used to start up a business. The documents include the business plan, a profit forecast for the first year or the following years as well as a complete cost statement of the required inventory. If goods, vehicles or machines are purchased to set up a company, these can be used by the bank to secure loans. Depending on the amount to be financed, it may be necessary for the borrower to name guarantors or to secure the loan for an ancillary business with property, such as real estate.

The state also supports loans for setting up a business

In many cases, founders of secondary businesses receive low-interest loans from the Lite Lender, LL for short. However, the amount of these loans differs because they are granted according to different criteria. Lite Lender divides the projects into programs that have different loan amounts, terms and interest rates. Depending on the project, the requested loan amounts can be paid out in whole or in part on request.

In order to receive a start-up grant, it is important to apply for it before the first investment is made. The borrower incurs no processing costs for most Lite Lender loans. The amount of the repayment amounts depends on the amount of the loan applied for. After the first payment, the loans are, depending on the purpose, free of interest and principal in the first few years.

A seminar can be very helpful for start-ups

A seminar can be very helpful for start-ups

In order not to have to refinance, it is advisable to get professional help. Before starting a business and before applying for a loan for a secondary business, you should either attend a coaching session at Lite Lender or inquire at the local adult education center whether a seminar for start-ups is offered. Here too, the founders are provided with a lot of information that simplifies the application for a loan for a secondary business.

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Loan for businesses

Business loans -Fill in our online form, if you need a loan for small business

Complete our simple online form, if you need a loan for small business

Loan for businesses, how can I find a line of credit for my business? The best way to find a loan for business is to check out Oak Park Financial here!

Banks and financial institutions offer a huge variety of lines and lending modalities for working capital and for investments in general. Loans are granted for short-term solutions – exclusive to your cashier’s urgencies, working capital, receipt of cards and overdraft. Medium-term – ideal products for the financial management of your company. Long-term – long-term financing for your company to evolve, leasing, and real estate credit.

Working capital

This line of credit is specific to meet the cash needs of the company, is one of the loan option for companies most used to raise funds to increase working capital. The hiring is super easy and agile, payments are parceled in up to 10 or 12x, depends on the bank.

Receipt with cards

Nearly 90% of stores and retailers work with credit cards to sell their merchandise. The entrepreneur chooses the date of receipts from sales captured with credit from his main accreditors, it can be every day, every week or when he thinks better, with “Receipt with cards” it is possible to advance these receivables for now.

Overdraft

Overdraft is a pre-established credit limit that is available in the checking account for the company to use at any time. This line of business loan provides the need for financial resources for contingencies.   The deadline for payment of fees and charges is once a month, the credit limit is automatically renewed on the due date.

Guaranteed accounts

The guaranteed account is a “loan account” separate from the checking account, it has a revolving credit limit to cover any working capital needs. The loan limit is defined by the financial institution according to the company’s payment capacity and the average terms are formalized in up to 120 contract days.

Check to cash

If your company receives pre-dated checks from your customers you can cash them into cash by simply taking the checks to your bank and opting for pre-dated checking custody services. The check limit per transaction varies from bank to bank and the hiring of the service is on time.

Duplicates discount

Another way to use banks’ services as a business loan by getting the cash values ​​of your duplicates to be due, they may be charging at your bank, the operation is simplified, you can have the data transmitted electronically, or even if you want, personally in the agency.

Immediate Loan

This line of credit is a very short-term “working capital loan”, the interest rate applied in the operation is simple, pre-fixed, payment is made in a single installment. The financial resource (money) is credited at the time of hiring, made up of the amount borrowed plus interest for the period.

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Renovation Loan Online

If a house or apartment has problems or needs to be modernized, the owner often incurs high costs that can not usually be borne without financing. The shortcomings of the property must be eliminated in order to make your own four walls not only comfortable, but above all energy-efficient.

Renovate property with a renovation loan

Renovate property with a renovation loan

With a renovation loan you can finance all the necessary measures that are necessary for the renovation. This type of financing can be applied for as a dedicated loan or even without a specific purpose. However, it is usually the case that an earmarked renovation loan has lower interest rates, as the lending bank requires proof of intended use, such as invoices for material purchases or for craftsmen. If you do not know yet what exactly the money should be used for, it is a good idea to choose a suitable financing without a purpose.

Property Rehabilitation – Government Support

Property Rehabilitation - Government Support

If a property is to be renovated, it may also give grants from the land, so that the corresponding financing amount may not be quite so high. In addition, some federal states also grant special real estate loans at particularly favorable interest rates. By a renovation loan or the renovation itself, the value of a property to be obtained, for this reason, the interest for real estate owners are correspondingly low, also a long term is possible.

Credit requirements for real estate loans

Credit requirements for real estate loans

Although the property to be renovated itself can be used as collateral for financing, creditworthiness is still crucial. The better this is, the lower the interest can be. If the creditworthiness of the borrower is bad, the risk of default increases for the bank, so that the interest burden also increases.

Calculate in advance for the optimal financing amount

Calculate in advance for the optimal financing amount

Before you rush to apply for a renovation loan, it is important to calculate the upcoming costs in advance so as not to apply for too low a loan amount, because even with financing that is used for renovation purposes, additional financing is usually more expensive. For this reason, you should rather calculate the costs generously, because often occur unforeseen events that make a renovation more expensive than previously thought. For this reason, the loan amount should not be too tight, you should always budget a financial buffer.

All detailed and important information on the subject of construction loans, home renovation and real estate financing can be found online on the blog by the financial advisors of Finance Expert Team.

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Loan: Opinions and Reviews, Read the Guide

Do you want to apply for a Aqualine bank loan, but you don’t know how to do it? Do you want to know which are the most advantageous options?

Thanks to this guide on how to get the loan with Aqualine bank, we will see to follow all the steps to get the loan. Here’s what you need to do!

Request procedure

Request procedure

It may happen that you need to apply for a loan to make some purchases, to renovate your home or to solve some problems. That bank also helps you choose the right option for you.

The loan with Aqualine bank can also be obtained online with a few clicks and can be obtained in about 48 hours. In a couple of days you can open the file and have the money in your account.

To make the calculation of the installment it is useful to make a quote that can also be requested online on the official Aqualine bank website. To get the loan, simply enter your personal details, the number of installments you plan to make the repayment and the amount you want to request.

The data must be entered in the online form. We remind you that the quote is free and not binding. The online quote also helps you get an idea of ​​the cost and cost of the installments. The estimate allows you to evaluate the loan options, the repayment duration and the cost of the installments.

It must be remembered that the more months for reimbursement increase, the more the monthly payment is reduced. In this case, however, the interests will increase by logical consequence.

Carefully assessing all the loan options helps to avoid wasting too much money on interest payments. We recommend asking for an appointment at the branch to know all the details.

The necessary guarantees for the loan with Aqualine bank

The necessary guarantees for the loan with Aqualine bank

Whatever type of loan you decide to request from Aqualine bank, there are guarantees to be provided even for those who have been protested or are on the list of bad payers. The guarantees to request a loan with Aqualine bank are mandatory:

  • The guarantee of a third party : it must be able to act as a guarantee. The guarantor can be a parent, a relative or a friend, it must be remembered that he can become the person responsible for the return in place of the applicant;
  • The pension : it influences the duration and the number of the installments according to the age of the subject;
  • The pay slip : this is the most solid guarantee for the loan request, with the pay slip you often get advantageous rates;
  • The salary assignment : a method even for those who have been protested or is on the bad payer list of obtaining a loan, the monthly sum to be paid to the creditor will be withheld from salary or pension. Often with the transfer of the fifth we have advantageous rates and repayment plans up to ten years;

What do you need to get the loan?

What do you need to get the loan?

To obtain the loan with Aqualine bank you must provide:

  • The pay slip, the pension or the last tax return (only for self-employed workers);
  • A valid identity document.

We remind you that even those who have been protested or who are on the list of bad payers will have to provide the same documents. There is no need to bring anything else unless requested by the bank, the rest will be taken care of by the person in charge.

Times to get the money

Times to get the money

In general, if the request for a loan is made through the online form, it is possible to obtain the money in about 48 hours from the opening of the web application.

In the event that you opt to request the loan at the branch it will be the one in charge to indicate you what the waiting times will be for having the loan on your account. We remind you that every loan application is different and both waiting times and interests can change with respect to the estimate.

The interest for the Aqualine bank loan

The interest for the Aqualine bank loan

The online quote helps you to know the interest rate and the installment to be paid monthly. We remind you that the estimate can also be requested at the branch and that it is free as well as not in any way binding on the loan request.

Thanks to the budget you can easily know the TAN and the APR. The TAN is the interest rate, the APR is the synthetic total cost of the loan.

The APR includes the commissions that must be paid to apply for the loan. Check both the TAN and the APR helps to find the most convenient ones. With a quick search on loans and rates you can even manage to save on interest.

The loan with Aqualine bank for the protested subjects

The loan with Aqualine bank for the protested subjects

Not in all cases the banks approve loans if they have been protested or if they are on the list of bad payers. To understand if What Bank will consent to your loan request you will need to ask for information in a branch to a person in charge. The bank will assess the financial situation and decide whether to proceed with the practice.

Often we ask to give a fifth of the salary as collateral to get the loan with Aqualine bank also from bad payers or protesters. With the transfer of the fifth the loan can be obtained with repayment plans of the amount up to 10 years and with advantageous interest rates.

Loans What a bank for temporary workers

Loans What a bank for temporary workers

Aqualine bank also allows temporary workers to apply for and even have a loan. If you are a temporary worker, you need to provide the bank with some additional guarantees.

To have a loan if you are a fixed-term worker, the number of installments must not exceed the working contract months that remain.

We remind you that the conditions to be respected for having a loan, even if you are a temporary worker, are the same as for permanent workers.