What is a loan with or without proof?

Let’s be clear: a loan without proof does not exist! Whether you are applying to a bank or credit company for your loan application, you will always need to provide a minimum of documents (pay slips, account statements, etc.).

In concrete terms, the term “loan without justification” refers to credits for which a demand for liquidity does not have to be accompanied by an estimate. We are talking about the so-called “unaffected” personal loan, as opposed to so-called “affected” loans (car loans, mortgages, holiday loans, etc.) for which a reason must accompany your application.

What is the difference between a loan “without proof” and “with proof”?

A loan without proof does not exist. The term (which instead means “unallocated”) includes credits for which a reason for the borrowing of cash is not essential: it will be called personal loan (or installment loan).

Be careful : even if a loan is said to be “without proof”, most banking organizations (bank or credit company) will ask you for what purpose the loan will be applied.

This type of loan is opposed to appropriations known as “assigned” (or “with proof”) for which a written proof must accompany your application for credit . This will be the purchase order of the car mechanic for the car loan, the sales agreement of the real estate agency in case of mortgage loan, etc.

Subject to acceptance of your file, the amount borrowed will be directly paid into your bank account (not the seller’s account), and you can then use your money as you wish.

What is a personal loan?

What is a personal loan?

A personal loan (or “installment loan”) is an “unallocated” (or “unsupported”) consumer credit that allows you to borrow money to finance the personal project you want.

With personal credit, no bad surprises! When signing the contract with the bank or credit intermediary, you know the duration, the interest rate, the total amount you borrow and the fixed monthly payments you will have to repay.

You are finally required to repay the entire loan on the agreed date (and in case of early repayment , you will have to pay a reinstatement fee).

What documents must be submitted when applying for a loan without proof?

Do you want to apply for a loan “without proof” (or personal loan)? You will need to be able to present, among other things, the following legal documents:

  • A copy of your identity card (or residence card) and / or co-borrower;
  • Salary slips for the last three months;
  • Account statements mentioning proof of income;
  • Your other sources of income (for example: your family allowances)
  • The latest warning-role statements (if you are freelance or freelance);
  • Written proof of the regularization of your situation 
  • A copy of your credits currently being refunded (if you wish to carry out a credit consolidation).

You do not work ? As long as you can show regular income, you can get a loan.

The foreign currency loan – Return on exchange rates

 

A foreign currency loan is taken outside the eurozone. These loans have the peculiarity that they are “maturing”, ie during the term only the interest is paid and at the end of the term, the entire loan amount is repaid in one. Consumers hope for better conditions than the regular installment loan .

Why foreign currency?

Why foreign currency?

The foreign currency loan is requested outside the Eurozone. Due to changing and fluctuating exchange rates, credit terms may be worse or better. In order to do good business, it is necessary to have a low exchange rate and a high valuation of the foreign currency against your own currency. The level of interest rates in the country in which the foreign currency loan is to be raised, but also the changes in the exchange rates, can make for a very good deal.

Term loans, what is it?

As mentioned earlier, the loans are final, which can also be beneficial. If the interest rates are favorable and only these are repaid in the term, the customer has a huge advantage. He only pays the lower interest charge and can wait until the end of the term to settle the entire loan amount. Usually, the customer then expects a larger sum, with which he can then pay his debts. Always with a view to low interest rates in the financial markets.

Risk of a foreign currency loan

Risk of a foreign currency loan

Ultimately, taking a foreign currency loan is a risk. The borrower always has to expect that the loan will be higher than a normal loan. Fluctuations in exchange rates and their increase may drive up interest and loan amounts. Normally, such loan agreements do not have a longer interest rate commitment. You can insure against a premium that the interest level does not go beyond a certain level. In addition, it is expected that additional costs, on the one hand for the newly created account and the fees of the currency exchange come to it. The bank also gets its commission, which ultimately increases the credit again.

Resumé on borrowing in foreign currency

 

Assuming that the interest rate is almost half of a normal loan, the above fees and commissions are always saved. As prices rise, interest rates decrease and customers only expect benefits. Companies have been using this financing option for a long time, which is why private customers are on the rise. The condition, as with all other financial transactions, should be to obtain sufficient information about these types of financing.