What are the essential points of a loan offer?

PROJECT / OBJECT

It determines the conditions of the proposal (duration, type of financing, guarantees, etc.).

TYPE OF FINANCING

It is linked to the type of project to be financed or to the life cycle of the company.

AMOUNT OF FUNDING REQUESTED

The financing need is determined by the economic study.

FINANCING DURATION

It depends on the type of asset financed and its duration of use.

PERIODICITY AND NUMBER OF DEADLINES

It can be monthly, quarterly, half-yearly or annually.

AMORTIZATION

There are different forms of amortization: constant maturity, linear (amount of capital always identical, interest decreases gradually), modular (possible variation of the maturity during the loan) or ultimately (a single maturity at the end of the credit).

FILE FEES

They pay for the study of the file by the financial partner. The amount can be fixed or proportional to the loan amount.

WARRANTY FEES

They depend on the type of guarantee requested by the banking establishment. They can consist of taxes, notary fees (for example for a mortgage) or commissions (mutual guarantee company).

BORROWER INSURANCE

It is not obligatory for a professional loan, but your banking establishment may require it on all or part of the financing requested (insured portion). The insurance reimburses the installments in the event of the occurrence of the covered risk and according to the insured portion.

GUARANTEES

They ensure that the banking establishment will repay the remaining installments in the event of default by the borrower. There are several types of guarantees: personal guarantee, recourse to a mutual guarantee organization, pledge, mortgage, pledge, etc.

NOMINAL INTEREST RATE*

This is the remuneration of the lending institution in return for the risk. It can be fixed or revisable.

The fixed rate gives you security. The amount of your due dates is known in advance. The adjustable rate can be a savings opportunity, but the amount of your installments is variable, so it is not without risk!

OVERALL EFFECTIVE RATE (TEG)

It represents the total cost of credit and allows you to compare several loan offers. It takes into account the nominal interest rate, bank charges and insurance.

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