Do you have a project to buy an expensive property or service? Want to redo your kitchen or buy a new car? The assigned credit, also known as the assigned loan, may be useful to you.
The terms of an assigned credit
The assigned credit is made with a bank, a financial institution, or directly with the seller concerned at the place of purchase.
Since it is a consumer credit, it follows the same general rules as the latter. The total amount of the credit must be between $ 200 and $ 75,000, and the duration of the loan must not be less than 3 months. Legally, the credit allocated has no limit in time, but its duration generally does not exceed 10 years.
The project, necessary to contract an assigned credit
Before taking out an assigned credit, the borrower must have identified his project; this is how it differs from the personal loan, which the borrower can use as he sees fit. Indeed, during the contraction of the credit affected, the project must be defined and mentioned in the contract so that the credit is entirely linked to this purchase.
The lending institution also requests a proof of purchase to validate the loan.
The projects affected by the credit affected are for example:
- The purchase of new vehicles: car, motorcycle, boat … (see artcile on the car credit).
- Buying used vehicles
- Work financing in the house
Conditions for subscribing to an assigned credit
To avoid over-indebtedness, the lenders must check the creditworthiness of the borrower, in particular by checking that the borrower is not registered at the Banque de France.
Moreover, if the requested credit is higher than 3000 $, they can request additional documents, such as a proof of income for example.
The affected credit agreement is inseparable from the deed of sale: if the sale is canceled or the delivery is not in conformity, the credit is automatically canceled. Since the lending agency pays the loan directly to the seller without going through the borrower’s account, the seller will have to pay the loan in case of cancellation.
The borrower will only start repaying the credit once it has been delivered by the seller. If the borrower has difficulty repaying (due to other borrowing, for example), he has the option to extend the credit terms up to 2 times a year.
The borrower also has a possible withdrawal period of 14 calendar days from the signing of the contract, and this without any cost.
Finally, once the assigned credit is accepted, the borrower is not required to make the purchase. In case of withdrawal, there will be no costs to refund.
The assigned credit is highly recommended for a defined and quantified project. It offers guarantees to the borrower and follows the same rules as a consumer credit.