Dealing with current needs or financing projects is not always easy to solve. And often, we do not necessarily have the means to resolve these situations envisaged or not.
Applying for a personal loan then becomes a preferred alternative to cope with large or unexpected expenses. It is at this moment that the personal loan broker enters the scene.
In general, the broker, who is he?
It is the professional who connects the parties in the context of a financial contract (bank, insurance, etc.). Committed by the individual, he is responsible for prospecting the market to find the institution that offers the ideal conditions for his client.
To enable the broker to carry out his mission, the borrower must provide him with information about the amount he wants to borrow, the project he wants to finance, not to mention his family and professional situation (address, earnings, charges). , etc.). Based on this information, the broker will build the claimant’s file and send it to several financial institutions.
The latter will analyze the data provided and define the modalities and facilities adapted to the profile of the individual. It should be noted that opting for these offers is not mandatory, because the applicant, in this case the client of the broker, can completely refuse to subscribe.
Solicit the personal loan broker, but for which projects?
The answer to this question is an explanation of what a personal loan is. This is a credit contracted for a maximum of 5 years, in order to carry out an activity of various kinds, but not professional. That said, the projects for which it is advisable to use a personal loan broker are, among others:
- renovation of a home (personal loan works);
- the acquisition of a car or a motorcycle (personal auto loan);
- the organization of vacations (leisure personal loan);
- marriage, children’s education or unexpected expenses (personal cash loan).
The role of this consumer credit specialist is to help you find the best possible financing. This is the one that fits the most to your profile and meets the best possible rate.
Opting for the services of a personal loan broker is also recommended, given the large number of files to be compiled and submitted to funding institutions.
How is the personal loan broker paid?
The personal loan broker is usually paid by the bank, and only after the signing of the contract, in consideration of the individual’s project and the amount borrowed. At the same time, the establishment charges you brokerage fees in addition to those of file.
However, it is advisable for the borrower to use the broker comparators available online, to benefit from the best possible benefits, and especially the right price, because the costs remain negotiable.
Credit Redemption and Personal Loan Broker
Although there are brokers specialized in the repurchase of credit , the applicants can entrust this project to the personal loan broker. In concrete terms, it is a question here of grouping the different credits of the individual into a single contract to which a single, negotiable rate will be applied.
In this context, the role of the broker remains the same: to help you choose the best possible offer.
His compensation is also indexed to the total amount redeemed, and generally represents the 5%. With the use of a broker, it will discuss the offers and find the best option to: either reduce monthly payments while extending the term of the loan, or increase monthly payments to reduce the amount borrowed.