Understand everything about loan

Personal contribution

Personal contribution

Amount available to the borrower to finance part of its acquisition.

Death and disability insurance
Insurance contract taken in particular with the occasion of a mortgage to protect itself in the event of death and disability. The insurer pays all or part of the outstanding capital of the loan, depending on the amount subscribed by the borrower.
The incapacity insurance covers all or part of the deadlines during the period defined in the insurance contract in case of incapacity for work.

Job loss insurance
Insurance contract subscribed in particular on the occasion of a mortgage. In the event of loss of employment, it will be responsible for reimbursement of all or part of the deadlines during the period defined in the insurance contract.

Insurance Group
Group insurance contract negotiated by the lender on behalf of its clients. It can cover the risks of incapacity for work, disability, death or risk of job loss.

Borrowed capital
Amount of credit extended by the lender. The capital can be paid in one or more times.

Remaining capital
Amount of capital remaining to be repaid on a given date. It is used as a basis for calculating the interest of the future maturity. The lender is required, once a year, to inform the borrower of the amount of capital remaining to be repaid.

Personal guarantee

Personal guarantee

Guarantee given by a person who agrees vis-à-vis the lender to repay the credit if the borrower has become defective.

Bail of a professional body
Guarantee subscribed by the borrower, for a fee, to the lender at a specialized institution. In providing security, the institution undertakes to repay the credit in the event of default by the borrower. The implementation of this guarantee does not require a notarial deed, mortgage registration or release if the property is resold.

Total cost of the mortgage
Sum of the interest and all the expenses conditioning the granting of the credit (if necessary: ‚Äč‚Äčexpenses of file, insurance, brokerage, guarantees …). Given the nature of the variable rate credit, the total cost of the credit shown in the contract is given as an indication of the information known at the time the credit agreement was published.

Real estate loan
Credit to finance the acquisition of housing, land or renovation or development if in the latter case the credit is secured by a mortgage.

Relay credit
Credit granted by the lender pending receipt of money after the sale of a property. This credit is repayable once at the completion of the sale or, if the property is not sold, at the end of the term provided in the contract.

Lapse of the term

Lapse of the term

Loss of the ability to continue repaying the credit by installments as a result of the borrower’s non-payment of its maturities. The lender may then demand the immediate payment of all sums that remain due (capital and interest plus the compensation provided for in the contract).

Deferred interest and amortization or Deferred total
Period during which the borrower does not repay any capital or interest. These interests will be added to the outstanding capital. Only insurance contributions are generally collected during the total deferral period.

Duration of credit
It is determined in the contract and can be fixed or variable. In general the variation of the duration can result either
the revision of the interest rate, ie the deferral or voluntary modulation of the maturity by the borrower.

Total duration
Initial duration of the credit excluding the pre-financing period and the options provided for in the credit agreement.

National File of Incidents of reimbursement of Credits to Individuals (FICP)
Created by the law of December 30, 1989 and managed by the Bank of France, the FICP centralizes the information relating to the incidents of “characterized” payments related to credits granted to individuals and the measures taken in the context of the settlement of situations of household overindebtedness . Credit institutions are required to consult the FICP prior to any effective decision to grant credit at the latest on the issuance of the proposed offer and to report any incident of repayment of a credit. Its consultation is reserved for credit institutions. However, as for any file, the registered person has a right of consultation with the Banque de France.

 

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