Category Archives: Uncategorized

Micro credit : social loan for works, emergency relief and exceptional help

The loan provides support to families with limited income. They can take the form of low-interest consumer credit or exceptional financial assistance. Here is the list of microcredit and the conditions to apply for it.

Who can benefit from social loans?

The loan can help you keep your head out of the water with dignity. If you need to renovate your home, renew your furniture or get an emergency loan, contact a social worker.

He will help you to build your application file and will bring it to the financial aid committee.

The family quotient

Each departmental CAF follows its own policy. However, all CAFs are based on the applicants’ family quotient.

For example in Ardèche, CAF equipment loan can be granted to families whose family quotient does not exceed € 720. In Calvados, the CAF work loan is intended for households whose family quotient does not exceed 620 €.

Find here our complete file on all CAF loans to which you can be entitled!

Benefits

Aid for families in difficulty is only granted to beneficiaries receiving benefits from the family allowance fund.

CAF takes repayments related to the credit granted on the benefits it pays.

Emergency social loan and relief

Emergency social loan and relief

You will be able to escape.

1. The help of the CAF

There is a difference between an emergency social loan and relief: relief is a non-repayable financial aid, while the social loan is equivalent to a low-interest consumer loan.

Access to these supports is subject to a request made by a social worker.

Another loan from CAF: the preventive loan .

Do not be mistaken !

The confusion is easy to do, especially on the site of the CAF of Calvados where the loan of honor and the emergency help are on the same page.

If you need an emergency loan, contact a social worker to explain the difference.

Who can benefit ?

CAF relief is provided to people with at least one dependent child, knowing that each department has its own definition of dependent child.

In general, when a family has a child under the age of 16, the child must be enrolled in school to qualify for CAF financial support.

If it is older, the household’s resources must not exceed a ceiling based on the hourly SMIC (10 € gross).

2. Emergency Social Loan

Each departmental allocation fund may decide on exceptional financial assistance, awarded under certain circumstances.

For example, CAF des Deux-Sèvres offers exceptional assistance when a family is facing a disability or the death of a child. Its amount is set by the social action commission according to various criteria.

This article may interest you: CIF loan for unpaid rents.

Habitat-related aid

CAF provides for a number of aids:

  1. The loan for improvement works.
  2. Help works related to a child’s disability.
  3. The loan for essential works.
  4. The loan for the purchase of a caravan.

1. The loan for improvement works

1. The loan for improvement works

The Family Allowance Fund can provide you with home improvement assistance if you own or gain ownership of the property.

You are the owner when your principal residence belongs to you, without mortgage.

You are a homeowner when you have bought your principal residence and you continue to pay off your home loan.

In both cases, the family allowance fund allows you to do some improvement work.

Get help to improve your habitat

While the terms of access to the CAF work loan are different from one fund to another, they still have some similarities.

In particular, you must request a quote, which must be prepared by a registered professional and declared. This quote can be done free of charge.

Departmental CAFs employ people specialized in housing, whose role will be to assess the need for the required work.

2. Assistance to the improvement of the habitat related to the handicap of a child

If you need to carry out work in your main residence to allow accessibility to a disabled person, you can also turn to the National Agency for the Improvement of Habitat (ANAH).

If the disabled person is a child, the family allowance fund can give you a loan.

This can go up to more than 4,500 € and come in addition to other bank loans. This is particularly the case in Calvados.

3. The works loan for essential works

3. The works loan for essential works

Departmental Family Allowance Funds also provide low-interest loans to make your housing decent.

These loans must allow the installation or adaptation of the heating system and the improvement of the sanitary and electrical equipment.

Some departments also allow work on insulation or allowing the creation of an additional room.

4. The loan for the purchase of a caravan

Some Family Allowance Funds also provide loans for the purchase or refurbishment of caravans.

Who is this financial aid for?

For example, the CAF du Finistère specifies that this loan is intended primarily for Travelers.

The latter must be beneficiaries of the CAF at the time of their loan application. They must also be able to continue to collect benefits for the duration of the loan repayment.

The caravan must be used as the principal residence for the applicant and his family.

The loan is means-tested and the applicant must not be in debt distress.

Funding is more readily available when children are born in the 3 years preceding the application, or when it is necessary for the family to separate.

What can you buy with this caravan loan?

The sum can be used for the purchase of a new or used caravan, or for its rehabilitation.

The funds are not paid directly to the beneficiaries, but to the seller.

The seller must be a licensed professional and must first produce a quote. Once the transaction has been concluded, the beneficiary must provide proof of purchase to CAF.

value of the loan

The loan amount for the purchase or renovation of a caravan depends on each departmental family allowance fund. In Finistère, it is around € 5,000 and is repaid without interest.

The loan of honor: a loan with a low-interest rate

The loan of honor: a loan with a low interest rate

The objective of the honor loan

The CAF loan of honor may take the form of a zero-interest loan or a consumer loan at a rate often below 1%.

Since the sum lent is most often used for professional integration, there is no interest.

It is thus possible to buy a car, to pass a driver’s license or to have an existing vehicle repaired from the moment it is used to go to a place of training or work.

I advise you to read this article: get a loan of honor to buy a car.

The repayment terms

The finance committee of each family allowance fund determines the amount to be allocated to each, depending on its situation.

Refunds are paid out of the benefits paid, which avoids defaults. Be careful therefore: to ask for exceptional help from the CAF, is also to collect less benefits.

The equipment loan

A really cheap consumer loan

consumer loan

All departmental family allowance funds offer a loan of equipment to buy furniture or appliances.

Monthly repayments are spread over a period generally between 25 and 32 months.

CAF sets a minimum amount for monthly payments. In Ardèche for example, the monthly repayment is 15 € minimum.

In order to help the beneficiary to build up cash, the first monthly payment is deducted from his family allowances only 2 months after the payment of the credit amount.

What can you buy with a loan?

What can you buy with a loan?

This loan covers only essential household appliances, including the washing machine, the oven and the refrigerator.

As far as furnishings are concerned, the concept of basic necessities includes a table and chairs, a mattress and box spring or a storage cupboard.

When a child is enrolled in college or high school, the CAF Loan Equipment can also be used to purchase a computer and a printer.

Each departmental CAF sets a schedule of loan amounts.

Operation of the Equipment Loan

The steps to follow

To obtain a loan of equipment from the CAF, you must go to the stores participating in the operation and ask for a quote that you will bring later to the social worker who accompanies you in this process.

Once the information is transmitted to the family allowance fund, it determines a maximum annual loan amount that can be adjusted according to the number of births in the family.

If your loan is accepted, you will receive a proof to present at the store’s cash desk.

You must then settle your share in cash, generally between 10% and 20% of the amount of capital equipment purchased. You can then quietly leave with the equipment.

The balance will be paid by the family allowance fund directly to the merchant.

Find here the list of partner stores.

 

Unemployment insurance for a home loan: best guarantee in case of job loss!

At a time when mortgage rates have never been so low, many are thinking of owning or investing in the rental. Yes, but how to take the plunge if you run the risk of becoming unemployed overnight? Answer: by taking a job loss insurance for a mortgage. Here’s how.

Should we take unemployment insurance or not for a mortgage?

mortgage loan

Valid for the borrower, the co-borrower and the surety, this contract will allow you to receive compensation to cover part of the monthly payments.

4 major financial organizations offer an interesting job loss guarantee:

  • Societe Generale.
  • Agricultural credit.
  • BNP Paribas.
  • Crédit Foncier.

Many borrowers are wondering about the usefulness of taking out credit insurance in case of layoff

 Many borrowers are wondering about the usefulness of taking out credit insurance in case of layoff

It is true that this insurance is only valid for people entitled to unemployment benefits paid by Pôle emploi. Merchants, craftsmen and liberal professions do not have access.

Is it wise or relevant to pay extra premiums under a lost-time insurance plan when you already have a home loan on your back? It’s up to you to judge, here are some elements that will help you there.

The compensation of the loss of employment guarantee

Level of taking care of your monthly payments

Unemployment insurance for a home loan does not cover all maturities but about 50%.

Let’s say that your income is 40% of the income of your tax household and that your credit term is 1,000 €.

If you find yourself unemployed, the insurer will pay you € 200 (€ 1,000 multiplied by 50% multiplied by 40%).

This amount is in addition to your rights to unemployment, knowing that these do not represent all of your income. So you will miss only 200 € to take out your unemployment benefits.

Date of payment of compensation

Attention: the compensation is not paid immediately after the declaration of your loss of employment. It can take a few months.

 

The features of the job loss guarantee

The waiting period

The loss of employment insurance for a mortgage is not always valid as soon as the contract is signed.

To avoid abuse, some insurers do not give you entitlement after 4 months. Others like the BNP do not include waiting periods.

Franchise

Compensation does not start on the first day of unemployment.

Except for BNP, which does not include a deductible, all contracts provide a period during which you will not be compensated. This can last up to 6 months.

The compensation ceiling

 The compensation ceiling

Insurers all offer a relatively reasonable compensation cap for 3 months in a 12-month period or depending on the duration of your CDI.

The cost of unemployment insurance for a home loan

 The cost of unemployment insurance for a home loan

The contribution of the loss of employment guarantee is calculated according to a percentage applied to the capital borrowed. If it is 0.3% for a mortgage loan of € 100,000, the monthly premium will be € 25.

The best unemployment insurance in case of job loss

 The best unemployment insurance in case of job loss

Of all the major players in the market, 4 of them stand out from the pack.

1. The unemployment insurance

Société Générale offers a formula for people under 65, with no deductible or waiting period.

It can be subscribed when you are under 60 years old and you work on a permanent contract. The contract gives rise to compensation of 50% of the monthly payments with a ceiling expressed in terms of days, according to the duration of the CDI.

2. What is proposing

The Crédit Agricole job loss guarantee does not start the first year and includes a 90-day deductible.

On the other hand, its compensation ceiling is relatively high: € 1,750 per month per 365-day period, for a maximum of 1,460 days. Compensation amounts to 50% of the maturity of the mortgage.

3. The offer of credit

credit

Unemployment insurance for a BNP Paribas home loan starts as early as the 91 st day of joblessness.

The formula is relatively flexible: it is open to people under 70 and compensation is maintained at 50% when the insured returns to work part time.

The compensation limit can be up to 18 months.

4. The contract

Crédit Foncier offers a loan guarantee from AXA at ​​a negotiated price.

You must have worked more than 12 months on permanent contracts to obtain this compensation. However, the contract does not include any deductible.

You will receive 50% of the deadlines of your mortgage loan from the first day of payment of your benefits Pôle emploi.

Amount of compensation

If you have worked between 12 and 18 months on permanent contracts, the compensation amounts to 64 € maximum per day during 180 days. If you have worked more than 18 months on permanent contracts, the ceiling goes up to 360 days.

Change borrower insurance

borrower

You have the right to change borrower insurance from the moment the new insurer offers the same guarantees as those required by your loan agreement.

In practice, you just have to give a duplicate of this contract to an insurance company to offer you a formula adapted to your case.

Of course your current insurer, which is certainly an affiliate of your bank, will not be happy. But he has no say, the law authorizes you.

Ask for a duplicate of your insurance contract, which outlines the terms of termination. Send him a registered letter with acknowledgment of receipt in accordance with the notice, and make sure that your new contract starts exactly when the old one ends.

Difficulties to settle your credit? Also read our advice sheet on the repurchase of mortgage.

The rate of attrition of a credit surrender

What is the wear rate?

loan rate

There are seven banks specializing in the redemption of credit and sharing this market in which the demand is high.
It is common for an applicant to obtain an agreement from a bank while all others have refused the request.
The more qualitative a request is, the higher the number of banks accepting the demand.
However, although different loan buyback banks work in the same way overall, they are free to determine the interest rate for each request.
In order to protect borrowers with too high interest rates, the Banque de France has defined maximum interest rates for each loan transaction: this is the rate of attrition.

Thus the banks of repurchase of credit must not exceed this rate of the wear under penalty of legal proceedings.
An organization lending money at a higher interest rate than the rate of attrition is called a usurer.
In the event that a bank lends money at an interest rate higher than the usury loan and the borrower has started to repay, the bank will have to repay the borrower the amount overpaid.

The calculation of the wear rate

The calculation of the wear rate

Every quarter, the Banque de France updates the usury rate for each type of loan: credit redemption, real estate loan and consumer loan.
For the determination of the rate of wear, the Banque de France relies on the interest rates charged by several banking organizations.

Taking into account the total amount lent by banks, the Banque de France averages the interest rates applied.
The result obtained is then increased by approximately 33% and makes it possible to obtain the attrition rate of a credit redemption and other types of loans.
It is important to stress that the Banque de France reserves the right to determine the rate of wear arbitrarily.

The current rate of wear of a credit surrender

In the second quarter of 2018, the usury rate of a loan buyback defined by the Banque de France is 5.89%.
Thus, when applying for a buy back of credit, it is important to check that the TEG (total effective rate) is well below the rate of wear.

It is also advisable to ask the broker for repurchase credit the rate of attrition at the time of receipt of a loan consolidation offer.
Although it is important to know the attrition rate when applying for a repurchase of credit, all banks comply with the maximum rates defined by the Banque de France.