What is a personal loan?
A personal loan, also known as an unsecured loan, is a form of consumer credit aimed at covering cash flow needs or financing a project. It is regulated by the Consumer Code in the same way as a revolving loan or a loan with a specific purpose.

Unlike loans with a specific purpose, personal credit offers great flexibility in how the borrowed funds are used. The borrowed funds are not directly linked to the purchase of a specific good or service. In other words, the borrower is free to use the money as they wish.

By taking a personal loan, you can finance the purchase of an item or your daily life:

• Wedding
• Travel
• Renovation works
• Education for children
• Household equipment
• Car purchase

It’s important to know: personal loans cannot be used for financing investments in real estate of any kind.

What amounts can I apply for? And what are the terms?
Personal loans have a high maximum limit and can be used for significant purchases. Before the Lagarde law of July 2, 2010, this type of credit was limited to €210,500.

Today, however, you can take out a personal loan for amounts between €2000 and €750,000. This limit is set by the French Consumer Code to protect borrowers from payment defaults.

Amounts over €750,000 are no longer considered consumer credit. As a result, the terms of use and protection are not the same.

Additionally, personal loans are subject to restrictions related to the repayment period. At Leeson Finance, borrowers have between 7 and 84 months to repay their debt. However, they can request early repayment if financially capable.

It’s important to know: the amount and duration of the personal loan affect the interest rate. This is determined when signing the loan agreement.

What are the advantages of an unsecured personal loan?
In addition to fixed monthly repayments that are known in advance, an unsecured personal loan offers several benefits:

• No proof of usage: When taking out an online personal loan, you don’t need to provide any account to the lender. In other words, you can use the loaned funds as you wish, without needing to justify your expenses.
• Flexible repayment terms: These are determined when signing the contract and define the monthly repayments and loan repayment period.
• Fixed interest rate: You pay the same interest rate throughout the duration of the loan, so there are no additional charges at the end of the contract.
• Early repayment option: Leeson Finance allows you to repay your personal loan before the date specified in your contract. An early repayment fee (ERP) may apply, depending on the amount of credit you have received.
• Fewer formalities: Taking out a personal loan is quick and easy, and you do not need to provide proof of how the funds will be used.
• Various types of projects can be funded: An unsecured loan can be used for any type of project, except real estate.

Each option can only be used once per year, but multiple options can be activated in the same year.

Using various flexibility options (e.g., suspending one or more monthly payments, reducing or increasing monthly payments, or making double monthly payments) results in a change in the repayment of the loan and its total cost, either up or down, depending on the case:

• The use of options that extend the duration of the loan is possible under certain conditions, within the maximum duration and limits stated in the contract.
• The use of options that reduce the duration of the credit is possible within the limits stated or defined in the contract.

Flexibility options apply only to the monthly payments of the personal loan. They do not apply to other monthly installments of the financing program (such as borrower insurance or other loans).