Credit and Borrowing

The basic principles of credit
The calculation of a credit: the principle of calculating amortization of a credit, the proportional rate and the actuarial rate, the calculation of the amount of a maturity.

The amortization schedule or repayment schedule: to read, understand or construct an amortization schedule, the differences between actual amortization or amortization.

The lexicon of credits: the main terms and expressions used in the field of credits.

The operation of a credit
Early repayment of a loan. Total or partial reimbursement, allowances provided for by law, special clauses …

Modulation of monthly payments. What are the impacts of increasing or decreasing the maturity of a loan?

Deferral of maturities. Partial or total, the deferral or the temporary suspension of the repayment terms of a credit.

The particular calculation of the first maturity of a loan. Amount of the first monthly payment according to the date of release of the funds and the date of withdrawal of this first monthly payment.

Unblock and delayed. Principle of gradual release of funds, deferred payment, total or partial.

Regulations and additions
The Scrivener Act. Overview of the two Scrivener Consumer Protection Laws with respect to real estate or consumer credit.

The rate of wear or the maximum GET at which a loan may be offered. The threshold of wear and tear in force, the method of determination, changes in legislation. The reform of the rate of wear and tear on consumer credit.

The Global Effective Rate (TEG) and the TEG Calculation. Regulation and method of calculation to determine the effective rate of a loan. The TEG case law.

[Repealed device] The tax credit on interest on borrowing for the acquisition of a principal residence. Reference texts. Online tax credit calculator.

Commitments on variable rate credit to improve borrower information and to establish rules of good conduct between banks. This is one of the consequences of the case on uncapped credits.

The CPA’s recommendations regarding the commercialization of loans in foreign currencies.

Intermediaries in banking and payment services (IOBSP) and credit brokers. Intermediaries, sometimes indispensable, to negotiate an offer of credit.

The Borrower’s Insurance for mortgages and the different categories of guarantee: death-disability, incapacity for work or loss of employment.

And also, in the real estate section: sale in the future state of completion, loan guarantees, notary fees …

Credit techniques
Credit smoothing. Principle of operation of the smoothing or the nesting of credit to obtain a constant monthly totality. Simulation of smoothing in line, smoothing with a loan at zero rate.

Double credit (or nested loans). Optimizing a loan by smoothing it with another one of shorter duration and lower rate, to lighten the total cost.