The repurchase of credit is interesting when one wishes to finance a new project, but that one presents a plurality of several loans. This operation makes it possible to have a complement of cash included in a single credit, which is particularly practical in the management of the budget.
Principle of a purchase of credit to finance a project
A repurchase of credit allows a borrower to renegotiate his rate, to reduce his monthly payments or to reschedule his deadlines. It is possible to include additional financing to implement a new project in this operation. To do this, the borrower must specify the nature and amount of his project at the time of applying for loan consolidation. The credit buy-out body then conducts a feasibility study after which it will propose a suitable financing plan.
The purchase of credit with a project is an alternative that avoids the borrower to graze a situation of over-indebtedness. The borrower takes advantage of the consolidation transaction to include additional cash directly into the single loan. He will have the opportunity to realize a new project without having to take out another loan. The borrower will also have an easier time managing his budget. It should be noted that the amount of funding granted is based on the household’s borrowing capacity.
Types of project to finance
In general, any project is receivable as part of a loan consolidation as long as it has a specific purpose and it does not lead to a situation of overindebtedness. It can be a car purchase project, a leisure project or a real estate project. It should be noted that the credit institution may request supporting documents justifying the amount requested for a real estate project. It is important to accurately define the project to be financed and to present it at the time of the request for the repurchase of credit. Finally, it may be useful to perform a simulation to have a clear estimate of its credit buy-back based on the duration and the amount of loans to be repurchased.