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When to apply for a bank loan?

The realization of a project requires financial resources. Depending on its size, the funding required can be substantial. To make a project a reality, different means of financing may be necessary: ​​savings, donations or loans. The bank loan is one of the main means of financing people. So what are the reasons why you can apply for a bank loan? Overview in the rest of this article.

What are the reasons for applying for a bank loan?

Applying for a loan is an effective solution in many situations.

  • To buy a car: A fair loan is one of the possible options for becoming a vehicle owner, because the cost of a new car is often high.
  • To become a real estate owner: the acquisition of a house or apartment requires significant financial resources. The loan makes it possible to obtain the sum necessary to buy a property or have it built.
  • To do various works: does your house need renovation? Do you want to increase the energy performance of your home? The construction loan is an excellent option to carry out this project without breaking the bank.
  • For various projects: it is possible to take out a loan for other reasons: to take a trip, buy a new phone, finish your studies, pay off debts, etc.

How to get credit?

To obtain a loan from a financial institution or bank, certain conditions must be met.

To have the loan you must have a fixed and regular income. You will need to prove that you have the necessary resources to pay your monthly payments. Having an indefinite contract or being an official is a real asset.

Your age is also a criterion that banks take into account. In general, it is difficult to win your case before the age of 25 or after the age of 65, because the organizations consider you a risk profile.

Another condition to respect is to have a low debt ratio. In other words, the ratio between your net income and the total of your monthly payments must be less than 33%. Similarly, once the monthly installments after the loan have been paid, the rest of your income should be able to cover your fixed expenses (food, transport, rent, health, etc.).

Finally, you do not have to be registered with the Banque de France. If your name appears in these files: FICP (National Record of Incidences of Amortization of Credit to Individuals) or FCC (Central Record of Checks), you will not get your credit.

How to choose a loan?

To select a bank loan offer, you must first find the formula you need. Once you’ve done that, compare loan offers using an online comparator. You will find the proposal that best suits your needs.

When signing the contract, read the clauses carefully to make sure they are right for you. If this is not the case, know that you can retract. If not, sign the contract and get the funds.

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