Consumer credit
Consumer loans are a type of loan that covers transactions unrelated to real estate. They specifically address the liquidity needs of borrowers who wish to finance the purchase of consumer goods. Therefore, they are not necessarily secured loans, meaning loans that only become payable upon purchase of a product and presentation of the invoice (such as a car loan for purchasing a vehicle). For your information: Consumer loans can be used in many situations. A consumer loan is only granted by a specialized credit institution or bank if the borrower is able to make their monthly payments and thus repay the loan.
What different types of consumer loans are there?
Besides purpose-bound loans, where the borrower must justify the use of the funds, there are many other forms of consumer loans. Among the most common, in addition to purpose-bound loans, are personal loans and revolving loans, also known as open loans, revolving credit, or long-term loans.
In both cases, the borrower is free to use the amount of their loan at their own discretion for their project(s) (renewal of furniture or household appliances, purchase of a new vehicle – car, motorcycle… –, financing of home improvement or renovation work, etc.).
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