June 13, 2024

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What is a personal loan: definition

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personal loan


The personal loan allows you to carry out a project of your choice without having to justify it to the lender . You can thus finance practically everything that is important to you, whether it is a wedding , a trip or the decoration of your apartment, without having to:

Show proof of the project (example: a TV bill, requested for a consumption credit linked to the purchase of a television).

Waive the amount borrowed if the purchase is not made (while a car loan is canceled if the acquisition of the vehicle in question is ultimately no longer made).

The personal loan offers you a fixed interest rate, which allows you to anticipate the total cost of your credit. With lesfurets, you can compare personal loans according to the duration and the amount of the loan and obtain the best rate for the financing of your project.

You can also calculate your personal loan monthly payments using our personal loan calculator .

Personal loan: how does it work?

Finance a trip, rearrange your interior or even buy a new car: a personal loan allows you to build up cash to deal with unforeseen events or finance a project. This financing does not exceed 75,000 euros according to the Lagarde law . This legislation does not provide for a maximum repayment period, but a personal loan can be spread out for up to 5 years, or even 7 years, in the majority of banks. Some financial institutions even offer certain profiles to take out a personal loan over 120 months , but with an exploding cost of credit.

The personal loan can be granted in two forms: assigned or unassigned.

Affected personal loan : with this type of credit, you must present proof of purchase from the lender.

Unassigned personal loan : in this context, you can use the funds as you wish.

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