How does a consumer credit work?

A consumer credit provides immediate financial support from a lending institution to repay in several installments (at least three) with interest. At Creditstair, the loan amount can be between 3,000 and 40,000 €. It may be intended for the purchase of movable property, but does not necessarily require proof and can be used for a trip or a cash bailout.

How the consumer credit works: the apr

How the consumer credit works: the apr

When a borrower subscribes to a consumer credit, he undertakes via a repayment schedule, to pay monthly installments that include the entire amount borrowed, plus interest. In the credit offer, they are included in the annual percentage rate of charge (APR), along with various fees and commissions. It is the APR that makes it possible to compare several consumer credits, by performing a credit simulation conso.

Operation of consumer credit: reimbursement

Operation of consumer credit: reimbursement

It is possible to adjust the monthly payments of a consumer credit after the first deadline:

  • to accelerate the repayment of the credit, and thus reduce the duration and thus the total cost of the loan;
  • to slow the repayment of consumer credit and preserve its purchasing power, by spreading the payments over time.

At any time, the borrower can make an early repayment of his consumer credit, total or partial. The lending institution may, however, indicate a minimum amount below which prepayment is not accepted. The law allows this for an amount less than or equal to three monthly payments.

How the consumer credit works: the report

How the consumer credit works: the report

To cope with a temporary cash flow problem, the borrower can suspend the repayment of the credit or postpone deadlines.

  • Partial deferral consists of paying only interest and non-capital insurance for several months.
  • The total carry forward implies to suspend the monthly payments entirely.

In both cases, the cost of consumer credit increases in different proportions.

Creditstair does not allow the deferral of monthly payments; in the crowdfunding model, monthly payments carry a direct impact on lending investors.

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