Let’s discover together this type of credit.
What is a loan work?
The loan works is a credit that is used to finance the work of a home. It is aimed at owners of a primary and / or secondary residence, as well as tenants of housing. The amount and duration of a work loan is determined by the borrower’s budget and repayment capacity. Note that the maximum amount authorized for this loan is 75,000 euros.
The rate applied is the APR (annual percentage rate of charge) used to calculate the total cost of the loan. It varies generally between 2.5% and 7.75%, and can reach up to 10%. The loan works can be requested from different credit institutions. They should be able to offer credit tailored to your needs and financial situation, given your profile.
What can be financed with this loan?
As a result, a works credit is used to finance projects related to the improvement of an apartment or a house. It can relate to renovation work: new insulation, energy renovation, reconfiguration of the space …
The development works ( decoration and makeover ) are also taken into account by this loan. The latter can thus be used to finance the refresh of your painting or the purchase of new furniture. Finally, the equipment in household appliances (replacement of a stove, purchase of a hood etc.) is included in the loan works.
Loan work assigned or unallocated?
The borrower may be hesitating between an assigned credit or an unallocated credit. How are these two types of credit different? The appropriation allocated works is only used to finance the work for which it has been requested. For example, a credit for the installation of a heating system must be used for this purpose. The borrower is required to submit supporting documents to the lender. The assigned credit provides some security for the borrower as long as the credit is obtained from the completion of the project.
As for unassigned credit, also called personal loan online without proof , it allows to use the borrowed money for any purpose without having to justify the use.
No proof is required on the expenses incurred. The borrower has some flexibility as to the use of the money obtained. This type of loan is more suitable for borrowers who wish to have some flexibility in the use of credit. In short, the choice of credit depends on how the borrower intends to use it.
Other information about the loan works
It should be noted that some works benefit from preferential credits. This is particularly the case of work to improve the energy performance of a home that take advantage. This credit is given by the State and granted by financial institutions.
Note also that the realization of energy saving work in a house is entitled to a tax credit. It is therefore advisable to find out about the various aids relating to the execution of works before applying for a credit for the works.