A loan commits you and must be repaid. Check your repayment capacity before you commit.

Credit lexicon

Calculation of debt ratio

The debt ratio is an indicator that measures the share of monthly income that a household or borrower can devote to the repayment of its financial debts, the amount of the monthly payment overall (all loans combined) that it is able to support.

Repayment capacity

This is the amount likely to be incurred by the borrower each month after deduction of all his fees and charges. We usually express it as a percentage.

Co-borrower

This is how the person signing the contract with the borrower is called. It benefits from the credit in the same way as the borrower and is subject to the same obligations.

Total cost of credit

The total cost of credit depends on the fixed borrowing rate (TNC), the amount borrowed as well as the repayment term. total cost of credit = interest + commissions + taxes and other charges

Affected credit

The amount of money loaned is linked to a specific type of purchase (the majority of our loans).

Depreciable monthly loan fixed

Loan of which the amount, duration and periodic repayments (amortization of capital and interest) are fixed in advance. The monthly withdrawal date can usually be chosen by the borrower.

Deadline

In the context of a loan, this is the repayment date of a monthly payment .

Borrower

It is the person who takes out the credit.

Application fees

Costs incurred by the credit institution for the constitution and study of a file and the financing proposal. They are billed to the borrower.

Lagarde (law) - it replaces the Scrivener law

Law of 1 May 2011 (law n ° 2011-1871) protecting consumers in matters of credit and improving the prior information given to them. The objective of this law is to develop more responsible credit by supporting borrowers throughout the life of their credit and by preventing household over-indebtedness.

It concerns loans over a period of at least 3 months and for an amount less than or equal to 75,000 euros . In addition, the customer has a 14-day withdrawal period (formerly 7 days with the Scrivener law) during which there are no penalties.

Financial Security Law (LSF)

Law of 1 August 2003 which incorporates the specific rules for advertising consumer credit. It establishes the principle of fair and informative advertising and the obligation to communicate a single and explicit rate. The font size rules and legal notices are also defined there.

Monthly payment credit

This is the monthly amount defined for the repayment of a loan, including a share of capital and interest.

Lender

The credit institution that grants the funds to the borrower.

Personal loan

It is a loan that the beneficiary can use for any type of project (leisure, work, cash flow, etc.): no allocation is predefined within the framework of a contract, unlike the allocated credit.

RIB bank account statement)

This is a code to numerically identify a bank account. The account is identified by a series of numbers, designating both the counter of the bank holding the account as well as the customer.

Since 2012, the RIB must be in BIC IBAN format.

Over-indebtedness

It is the impossibility of facing, durably, his personal debts.


Annual effective insurance rate (TAEA)

  This mandatory information informs the future borrower about the cost of the insurance offered in a credit offer.
It must be provided by the lender before any contract is signed.
The cost of insurance is now expressed in:
- TAEA: it translates the cost of the insurance offered in a credit offer in the form of a rate.
- Cost of insurance per period in euros: amount of the insurance premium paid by the borrower on each loan repayment deadline (every month for example),
- Total cost of insurance in euros: total sum of all insurance premiums paid by the borrower over the entire repayment period of a loan.

Annual percentage rate of charge ( APR )

The Annual Global Effective Rate ( APR ) must appear on the prior loan offer. This is the only rate that allows the future borrower to compare the credit offers of the same nature from several credit institutions.
APR represents as a percentage all mandatory costs for obtaining a loan. Thus, it includes the fixed borrowing rate (TNC), any administrative costs and the cost of insurance when they are compulsory, guarantee costs, and commissions paid by the borrower.

Lending rate (TNC)

The borrowing rate (TNC) is used to calculate the interest received by the lender in return for the funds made available to the borrower.

en