You are considering work in your home. This raises the problem of the budget and the financing of this work. How to choose a work loan? What works can be financed? For how long and at what rate? We explain the essentials to you.
Works loans: which works are eligible?
It is possible to take out a work loan for different types of project. You can apply for a loan to enlarge your house, renovate your main residence or improve the energy performance of your rental property.
Work to improve energy performance ,
Work to adapt housing to handicaps (interior and exterior).A work loan can allow you to finance the purchase of materials to carry out this work, provided that you choose a company to carry out the installation.For people living in an apartment within a condominium, the cost of certain interventions on the common parts of the property can be financed by a work loan.This list of projects for your accommodation is not exhaustive. Find all the work that can be financed on the product sheets corresponding to our loans.Are you employed in the agricultural sector? Discover the conditions of the AGRI-Travaux and AGRI-Agrandissement loans to carry out work in your home.The documents to be provided to obtain a work loan
Your credit application file must contain:
Recent proof of identity and address,Detailed invoices from companies or service providers less than 3 months old (issued in the name of the loan beneficiary).These are proof of expenses. They will be requested from you by your bank or credit institution when paying the loan amount in order to verify that the use of the funds is in accordance with the credit .
You can submit your application file to different organizations:
Consumer credit organizations.
Thanks to Action Logement, I was able to renovate my apartment.
The amount of a personal loan cannot exceed 75,000 euros (articles L. 312-1 and following + articles R. 312-2 and following of the consumer code).
Characteristics of the work loan
The works loan is a consumer loan and not a mortgage. Its amount can only be devoted to carrying out work. And to ensure that this obligation is respected, the organization is entitled to claim quotes and invoices from the borrower.
Is the work loan an assigned loan?
No. As part of an assigned loan, the capital is not paid into the borrower’s bank account. The bank or financial institution pays directly the company that provided the services.
The rates of the loans financing the works
The amount of the work loan can be between 200 and 75,000 euros and the minimum repayment period must be greater than 3 months.
The fixed rate work loan
The interest rate does not change until the end of the repayment of the loan. Your monthly payments do not change.
What is the Annual Percentage Rate (APR)?
The annual effective annual rate (APR) is the rate that will take into account all the costs incurred by taking out a work loan (bank interest, cost of compulsory insurance, etc.).
It makes it possible to compare several loan offers according to their total cost, on the condition that the amount borrowed is identical.
The duration of the work loan
To obtain the payment of the funds of your work loan you must send (within a maximum period of 3 months from the completion of the work):
Detailed invoices dating from less than 3 months drawn up in the name of the beneficiary of the loan, signed and dated by the service providers, proving the use of the funds,
Proof of purchase of materials provided that the installation is carried out by a company.
If it is work carried out on the common parts of the co-ownership of a main residence, the amount requested will be released on production of the call for funds sent by the trustee showing your share.
Reimbursement of the work loan
If the amount you have requested for your loan is ultimately greater than the amount necessary to carry out your work and you have unreleased capital left, you can decide to repay part or all of your work loan, we then speak of prepayment. However, your contract may provide for prepayment penalties (Pra).