CAF can lend you money! How to get up to €3,500 without paying a cent in interest?

The Family Allowance Fund (CAF) offers different types of zero-interest loans to help households experiencing financial difficulties. But do you really know what loans exist and how to benefit from them? Answer in this article!

CAF: Loans to meet urgent expenses

CAF provides several interest-free loan options to help recipients overcome temporary cash flow problems:

• The honorary loanalso called relief or emergency loan, allows you to pay urgent unpaid bills (rent, energy, etc.) or to buy/repair a vehicle essential for getting to work.
• The equipment/furniture loan offers the possibility of acquiring essential goods (household appliances, bedding, etc.).
• The heating loan is used to settle unpaid heating bills.
• The car loan finances the purchase of a car required for employment.

These zero-rate loans are of a variable amount, which can range from from a few hundred euros up to €3,500 in the case of the honorary loan. They allow you to cope with a difficult situation without worsening your debt.

Strict conditions for obtaining

To benefit from a CAF loan, you must fulfill several criteria :

• Be a CAF beneficiary and respect the resource conditions.
• Justify an urgent and legitimate need.
• Provide the requested supporting documents (tax notice, rent receipts, etc.).
• Don’t be over-indebted.

In addition, each type of loan meets specific rules. THE home improvement loan (PAH) is the only one to present the same terms and conditions throughout the territory. The others are subject to the local policies of the departmental CAFs.

Exclusions to know

Certain types of expenses cannot be financed by a CAF loan. This is the case, for example, of:

• Buying a home.
• Comfort and leisure work or equipment.
• The repayment of other current credits.

It is therefore essential to carefully check that your request meets the eligibility criteria.

How to apply for a loan from CAF?

The procedure to follow is as follows:

1. Complete the form corresponding to the desired loan.
2. Explain your situation and your needs.
3. Provide the requested supporting documents.
4. The CAF studies the file and decides to grant the loan.

Certain specific loans may also exist depending on your department. Do not hesitate to inquire with your advisor.

If it is refused, alternative solutions exist such as social or bank microcredit.

Thanks to this in-depth investigation, you now know how to get a financial boost from CAF.