An express loan is a fast-track financing solution that allows you to access funds within just a few days.
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| Entrepreneur: How to Secure an Express Loan |
Designed to meet urgent needs or quickly fund a project, this type of consumer credit can reach up to €75,000. How does it work? What are the steps to obtain one? What are the different types of express loans? Let’s dive in.
What Is an Express Loan?
An express loan is a form of consumer credit designed for urgent financial needs. It provides quick access to funds shortly after approval by the lender. However, it typically comes with higher interest rates and flexible repayment terms that vary depending on the loan type.
Why Apply for an Express Loan?
An express loan is ideal for covering unexpected expenses or meeting short-term needs. Whether it’s an unplanned purchase, urgent car or home repairs, a last-minute trip, or an emergency event, this financing solution is accessible to nearly everyone, including those listed in the French national credit repayment incident file (FICP) under certain conditions.
Types of Express Loans
Depending on your needs, several types of express loans are available:
- Microcredit: A small loan for minor financial needs.
- Revolving Credit: A reusable line of credit that replenishes as repayments are made.
- Personal Loan: A non-specific loan not tied to any particular purchase (no proof of purchase required).
- Secured Loan: A loan that requires the borrower to use the capital obtained for a specific personal project (with proof of purchase).
These loans are offered by specialized financial institutions, traditional banks, and fintech companies, particularly for microcredit. Most offers are available online.
How to Choose the Right Express Loan
When considering an express loan, it’s crucial to scrutinize several elements to avoid scams. Even if your need is urgent, take the time to compare express loan offers to find the one that best suits your situation.
Financial institutions like Floa Bank, Younited Credit, Boursorama Banque, Finfrog, Moneybounce, Orange Bank, Lydia, Cofidis, and Cetelem offer various options.
The best express loan is one that allows you to achieve your goal while fitting within your budget and protecting you from over-indebtedness. Don’t hesitate to check online reviews of credit institutions to help make your decision.
Keep in mind that each lender has its own criteria for evaluating and approving loan applications, so if your application is denied, you can always try with another institution.
Steps to Obtain an Express Loan
Securing an express loan online is relatively simple. Once you’ve chosen a lender, you’ll need to submit an official loan application. Typically, this involves filling out an online form with information about your project and your personal details, including the loan amount and repayment term.
The lender will then review your application and assess your financial stability. This assessment will determine the loan amount you are eligible for. Some banks may require a phone interview before approving your request.
The lender’s response time is usually quick (instant or within 24 hours). Be sure to read the contract terms carefully before signing and gather all the required documents. If the terms don’t suit you, you can withdraw from the agreement within a 14-day cooling-off period.
Required Documents for an Express Loan
To apply for an express loan, you’ll typically need:
- A valid ID (national identity card or passport).
- Recent payslips.
- Recent tax returns.
- Proof of residence.
- A bank account statement (RIB) for the disbursement of funds and repayments.
Submitting a complete application can speed up the process, so it’s important to gather all necessary documents in advance.
Repayment Terms and Loan Amounts for an Express Loan
Repayment Terms
The repayment terms for an express loan vary depending on the lender and the loan amount. For example, microcredit repayments can range from a few months to several years (3 to 36 months for Lydia, 3 to 10 months for Finfrog, or 3 to 48 months for Moneybounce).
You can also repay your express loan early if needed. If you face difficulties in repaying the loan, you can request a debt rescheduling from the lender. If refused, you have the right to appeal to the district court for a grace period. If all else fails, the French Banque de France’s over-indebtedness commission may intervene to propose a debt restructuring plan.
Maximum Loan Amount
Under the Lagarde Law of July 2010, consumer credit allows you to borrow up to €75,000. The minimum amount you can request is €200. For express loans, the amounts are similar, but this doesn’t guarantee that you’ll qualify for the maximum amount.
The lender will determine your loan amount based on your overall financial situation. Moreover, not all lenders offer the same borrowing limits—some may offer significantly less than €75,000.
Disadvantages of an Express Loan
While express loans offer many advantages, it’s essential to take time to reflect before committing. Borrowing money carries consequences, and the larger the loan amount, the more cautious you need to be to avoid over-indebtedness.
Be wary of lenders that promise to disburse any amount within 24 hours—this is often not credible. If in doubt, use the cooling-off period to reassess your decision.