Consumer credit affected, the work loan can be requested by individuals for all types of work relating to their housing. Here are our tips for everyone who needs financing for their renovation projects.
Understand what a work loan is
A work loan is a consumer loan used to carry out work in the housing occupied by the borrower. It should not be confused with the real estate loan with works which is also a financing for works, but backed by a real estate purchase.
These loans are not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company’s short-term operational needs.
The work loan considered as assigned consumer credit can concern the financing of major works carried out by a professional as well as works carried out by the individual himself. It is a type of consumer credit that often concerns wealthier and older borrowers than applicants for other categories of consumer credit (auto loan, personal loan, etc.).
Take an interest in the current rates for works loans
Overall declining in 2017, the rate of works loans reached bottom levels often record in January 2018 (examples: 1.70% for the minimum rates of works loans of less than $ 10,000 over 24 months, 2, 90% for over 60 months). To take advantage of the best rates, the individual must scrutinize the offers of the various banking establishments which can sometimes make your customers profit from work loans at promotional rates. Gathering all the costs linked to credit, the Annual Effective Annual Rate (APR) makes it possible to compare each loan with each other.
The possibility of resorting to zero-rate loans
State-subsidized loan, the zero rate loan (PTZ) can complement a work loan if the individual (or his tax household) owns and has small incomes. The zero-rate loan notably allows the purchase of housing to be renovated with work to be done at least equal to 25% of the total cost of the operation. The zero-rate eco-loan (eco-PTZ) allows it to finance the energy renovation of housing, and is accessible to both landlords and occupants of old housing.