In this article, find a precise definition of bank credit and explanations on this subject. By being well informed on the subject, you will be able to choose the financing solution that meets your expectations.
What is a bank loan?
It is a sum of money loaned by a bank to a client. The credit is used either to finance a major personal project, such as the financing of work in a dwelling, or to compensate for an unforeseen event, such as unexpected medical expenses.
Note also that the customer of a bank can be a private individual or a business. The borrowing conditions differ from one to the other.
The terms of private bank credit allow consumers to repay at their own pace and according to their borrowing capacity. The client can repay the amount borrowed, plus interest, over a period of 12 to 120 months.
Managing the amount loaned
With a private bank loan, the consumer does not have to justify the reasons for his loan. It is up to him to dispose of his money freely !
The loan amount is paid in full to the borrower’s account and it is up to him to manage it as he pleases. He can spend it little by little or invest it entirely in one go in a project.
It is possible, depending on the situation, to supplement the bank credit already contracted with an additional sum of money or with a new loan. To do this, simply contact the banking institution.
Interest represents the cost of credit. Indeed, credit is not limited to only an advanced amount of money. By lending you money, the bank sells you a financial product. This sale at a cost: interest.
In the case of a bank loan, the interest is fixed. This means that the cost of credit is known as soon as it is obtained. It is thus possible to manage your budget soundly.
Advantages of bank credit
It is a solution that enables secure and rapid financing. It is not possible to find yourself overwhelmed by the monthly payments since these are fixed. And as soon as the credit request is accepted, the amount is paid into the account within 14 days.
If you wish to obtain a safe and reliable bank loan, we recommend that you call on our partner Fine Bank.