The work loan is part of a credit category, which is used to finance the work that one wishes to do in one’s residence, whether primary or secondary, such as renovation, expansion or improvement. comfort (equipment, insulation, decoration of a dwelling).
This loan allows homeowners and tenants to do work at home. In bank branches and credit granting companies , it is offered under these two forms: the assigned credit or the affected personal loan.
Both kinds of loans work
The loan works, despite what its name implies, exists in two different forms: the consumer loan and the mortgage loan. Applying for credit for work, using a home loan, is more advantageous financially because it costs less to the borrower.
The contracts proposed should be read very carefully because they do not always agree with all types of work: some will be useful for decoration and layout, while others will allow for more important work, like extensions and renovations.
How does the work loan work?
It works like conventional loans, the bank or credit institution advances a sum, which the borrower will repay each month for a predefined period, with the corresponding interest.
The loan work (whether assigned credit or personal loan assigned) is allocated according to the needs and most importantly, the repayment capabilities of the borrower. It is often considered a consumer loan, which is assigned to work expenses.
Generally, the amounts vary from 500 to 75 000 euros, for a repayment period of up to ten years. Before applying for a loan, it is recommended that you do a simulation to find out which one is best for your situation.
Online banks and loans work
In online banking, loan work is represented in these two forms: as a consumer loan or as a home loan. Both are offered according to the cost of the work you intend to do in your home.
Online banking offers are highly diversified as they have become major players in the banking market. Some online banks offer you the possibility, to detail the assignment envisaged for your loan: that it is about works of decoration, purchase of furniture (even of computer science or electrical appliances) or works more important.
However, in order to simplify the steps and requests, online banks decide, most often to transfer loans for work, on consumer loans.
Differences between consumer loan and home loan
These two loans have different advantages: the mortgage offers a reduced rate while the consumer loan is much simpler to ask and put in place. That’s why they are used in different situations.
If the works are used for ancillary works, there will be more chances, whether they are financed by a consumer loan. If, on the contrary, they are big works, they will most certainly be financed by a mortgage.
The simplicity of the consumer loan is actually explained by the complexity of the mortgage loan: to be used, it most often requires a guarantee to be affixed in return. This guarantee, in addition to having a certain cost, needs time to be installed. It may be a mortgage guarantee or a deposit such as housing loan.
The benefits of working online loans
Using credit online offers many benefits. First of all, it is easier to find clear information on all available offers and to put them in parallel, for example using comparative tables, which are very easily accessible.
Online, it is also possible, to perform many simulations, which can calculate and find the offer best suited to his profile and corresponding to his expectations.
Possible work thanks to the work loan
A wide range of works are eligible for a loan: decoration (upholstery, painting, flooring), equipment (household appliances, furniture, lighting), interior design (attics) , double-glazing, insulation, partition, separation), works concerning the shell or extensions (floor, veranda, garage, swimming pool, roof) as well as, renovation (for example, masonry, electricity , plumbing).
These works can perfectly be assigned to an improvement of the quality of life, and concern the comfort of the home, they are not necessarily consequent. In addition, some work loans may be devoted to a change in energy consumption.
By replacing energy-intensive equipment with more energy-efficient products and equipment using renewable energy. Thanks to these loans, it is quite possible to have a condensing boiler installed, to have solar panels installed, or to equip its doors and windows with double glazing.