What is the redemption of credit? The credit buyback consists in grouping together a set of loans in progress which aims to reduce monthly payments and reduce the debt ratio by extending the repayment period.
This financial transaction allows a borrower to regain purchasing power. The repayment periods and the amounts of the monthly installments of the rescheduled credit are determined according to the needs of each borrower to the extent possible.
This type of transaction is contracted by a bank or a broker specialized in credit buybacks like Penny Credit.
Whether the borrower is owner or tenant and regardless of his socio-professional category or marital status, he can claim a credit redemption.
The benefits of loan redemption:
- A monthly payment and a debt ratio that fall,
- A financial solution without changing banks
- Greater purchasing power and the ability to invest.
- The possibility of integrating complementary cash
- Helps fight against over-indebtedness
Regarding the purchase of consumer credit, it is possible to combine a set of credits from € 1500 and up to € 150 000, this depending on the banking partners and the personal situation of the customer.
For a credit group incorporating a home loan, the total amount of loans to be grouped can range from € 22,000 to € 1.5 million (no actual maximum limit).
The role of the broker of redemption of credits:
The role of the broker or intermediary in the purchase of credits is to advise and assist those wishing to set up a loan buyback project from beginning to end to finance a new project or to avoid over-indebtedness . Brokers are in constant contact with several banking institutions that can offer credit consolidation products. The broker defends the borrower’s file to be accepted by his banking partners. He negotiates the best possible offers for his customers with solutions adapted to the needs and situation of each. It explains step by step the entire financing plan proposed by its banking partners and remains attentive to answer the legitimate questions of its customers.
You should know that brokers can not require a borrower, the payment of any kind whatsoever before obtaining a loan (MURCEF Act). Whatever the reason (abandonment of the client, refusal of the bank, …).
Whenever a borrower decides to take out a loan, he has to take out a new insurance to protect himself against the accidents of life. By consolidating all its loans, the borrower will have only one credit and one insurance.
It should be noted that the Lagarde law allows each borrower to no longer subscribe to the insurance loan proposed by the lender. From now on, new borrowers can choose to insure with the insurer of their choice what is called a delegation of insurance. The lending institution may not refuse this delegation of insurance if the guarantees subscribed are at least equivalent to those it proposes.