Do you want to do work in your current home or in your future home but you do not have the cash to carry out your projects? The loan works is there to help you finance these expenses, whether to redo your kitchen, enlarge your home, renovate a room or do insulation work to reduce your energy bill.
There are several kinds of cheap loan work:
The loan works in the form of a personal loan
The loan works in the form of a personal loan, also called consumer credit, can be offered by all banks, and credit agencies. It can be subscribed for any type of work, whether done by a professional or by yourself. The amount of the work credit must be less than or equal to 75 000 €, with a duration equal to or greater than 3 months, without exceeding 10 years.
The loan rate will be a fixed rate, which will be around 4 to 5%, which will depend in particular on the amount borrowed and the duration of the loan. The repayment schedule is defined in advance, on the basis of fixed payments. This relatively simple option attracts many borrowers. No contribution is required to apply for a loan work in the form of a personal loan.
If you want to carry out specific work such as insulation or renovation work, there are also some ready-made renovation works or ready-made insulation work, which can be granted with cheaper interest rates than the loan works.
With a personal loan for work, it is possible to finance your work, even if you do it yourself, without having to provide proof, such as invoices for the purchase of materials. If the work is done by professionals, you also do not need to provide the bills.
The requested funds will be released as soon as your work loan is accepted.
The loan works in the form of mortgage
The loan type work loan, must necessarily be greater than 21 500 euros. It is preferred if you have to carry out major masonry work, plumbing, electricity or if you need to remodel attic, install a kitchen or a veranda. The terms allowed for this type of cheap loan work may be longer than for loan type personal loan work but you will have to justify the use of the funds.
You will need to provide your bank or credit institution with a minimum quote of € 21,500 to be able to apply for a cheap loan. The main advantage of this loan is that interest rates are often lower than those of personal loans for work.
Deadlines for obtaining funds are longer for this loan work because you have a period of reflection of 10 days before you commit. You will also be asked to provide in addition to quotes, invoices to justify the use of funds.
The 0% work loan usually comes in addition to a real estate acquisition loan. It is possible to subscribe to a zero-rated work loan, for the work to be done as part of the purchase of housing. Also called PTZ this loan allows to finance the purchase and possibly work during the acquisition of a new house, an old housing whose works represent 25% of the total cost of the operation. You will have to justify your expenses and provide the invoices in order to unlock the necessary funds for the works.
Eco-loan at zero rate, it will be preferred if you want to perform work to improve the energy performance of your home, for housing built before 1990. This loan will be granted to you subject to resources, for a maximum amount of € 30,000 over a period of up to 15 years.
Who is the loan for?
The work loan is open to all, subject to the eligibility conditions of each bank or credit institution. Your guarantees must be solid to get your credit work, that is to say you must have a stable job, good income and regular, have a good ability to save, and not be stuck at the Bank of France.
In the event that your loan application works is accepted by the financial institution, you will receive a loan offer, in which all the features of your credit will be stated. Take the time to read this loan offer, and ask any questions you want before you commit.
How to find a cheap loan work?
In order to help you find the cheapest loan work, we advise you to compare different loan offers via online comparators. You can also apply to your bank, or to a bank where you are not a customer.
To compare offers via a simulator, you will need to fill out a form with some information about your project:
- the amount of the work loan desired as well as the type of work to be performed,
- the duration of the loan
- your profile: your family situation will be requested, as well as your date of birth, the date of birth of the co-borrower if you borrow at 2, the number of children you have in your charge, the name of your bank as well as the year of opening your bank account, and the type of credit card you have. Your professional situation will also be asked, namely, your profession as well as your sector of activity, the type of your employment contract (permanent, temporary, temporary …), but also your income as well as the amount of your rent or your mortgage, if you are a tenant or owner.
Once all this information is entered, the simulator will be able to offer you several cheap loan offers, the most advantageous rates, at the highest interest rates. Of course, the credit rate is not the only criterion to be taken into account, it is also necessary to compare the various expenses of each bank or credit institution.
According to a barometer of January 2017, the average rate for small jobs, between 3,000 euros and 9,999 euros varies between 4 and 10% for a period of between 12 and 72 months, and the average rate for heavy work, between 10 and 000 and 30 000 euros, varies between 2 and 5% for a loan period of between 36 and 96 months.
Regarding the rate, it is important to distinguish the posted rate, which can be called the TNC (the Conventional Nominal Interest Rate), which can be tempting, and the APR, the Global Annual Effective Rate, which gives it a accurate indication of total credit, including insurance. Indeed, the lower the interest rate, the less money your work credit will cost you.
To be certain to choose the best loan offer works, and therefore the cheapest loan work, the best indicator to take into account is therefore the total cost of credit. For two identical amounts and two identical loan durations, choose the organization that will offer you the lowest total cost of credit.
There are also criteria that can be important regarding the choice of bank or credit institution. Indeed, some financial institutions may offer you some flexibility regarding your monthly payments, such as the possibility of postponing a monthly payment in the event of a hard blow, or reviewing its monthly payments downward or upward. It is important to note that the longer your monthly payments, the longer your credit will take, and the higher the total cost of credit.
When you have chosen the most advantageous job loan offer, simply make a request, which you can mostly make online, or in the bank selected. The bank or credit institution will ask you for documents such as a photocopy of your ID, your latest pay slips, proof of address, your latest tax notice, and your latest bank statements.
Once your application for cheap loan work is sent to the credit agency, it will be able to determine based on your financial situation whether it grants you the loan or not. Banks and credit organizations will ask you to justify a stable job and sufficient income. They may refuse you for example the amount requested, or the desired duration, but offer you another offer of personal credit, with a lower amount, and a longer credit period.
The loan works remains a credit, so you agree to repay it. It is therefore necessary to check your repayment capabilities before you commit.