What is a consumer credit?

Consumer credit is either an unallocated credit or a credit allocated to the purchase of a good or service, but their operations remain rather close. The consumer loan guide guides you for your project.

Consumer credit: definition

The consumption credit is a credit granted to an individual by a bank or credit institution. Also called conso credit, it can finance everything you want (excluding real estate). It has been for some years strictly regulated by the law in order to limit any abuse (Lagarde law then Hamon law among others). Its amount is between 200 € and 75 000 € with a minimum duration of 3 months. Several loans for consumption can be cumulated, it is not necessary however that the totality of the monthly installments of credit of the borrower (immo and conso) is greater than 33% of its incomes to protect it from the over-indebtedness.

Consumer credit has two distinct categories:

  • The credits allocated for the purchase of a specific property
  • Unrestricted credits for free use of the borrowed amount

Which consumer credit to choose?

The choice of your consumption credit must be made according to your project. It depends on the amount to be borrowed, the desired duration or simply the type of project.

Credit consumption affected

Credit consumption affected

The appropriated appropriation is intended for the financing of a good or a service indicated in the contract. The assigned loan has the particularity of being entirely dependent on the property to be financed and conversely, one can not exist without the other. It is nevertheless important to indicate on the sales contract that it is conditioned to obtain the credit in order to avoid any problem.

When the borrower takes out an assigned credit, he gets a guarantee with this one:

-If the good or service is failing or not delivered the borrower does not have to start repaying the loan, the sale and credit can be canceled.

-If the credit is refused, the borrower is not required to honor the promise to purchase and therefore does not find himself with a good on the arms that he can not pay.

The credit affected has the disadvantage of being attached to a service or property but the advantage of obtaining credit and good or neither.

  • Motorcycle loan

The auto-moto loan is the most widespread affected credit. Often representing a large budget for households, the use of a credit for the purchase of a vehicle is very common. It allows the borrower who does not have savings or who does not want to use it, to start repaying his credit when he is delivered from his vehicle.

  • Ready works

The credit works can be assigned or unassigned, it is very often affected when the borrower uses professionals and for consequent work.

Non-earmarked consumption credit

Non-earmarked consumption credit

The unallocated credit allows the borrower to use the borrowed amount as he or she wishes. This is a very flexible financing solution since it does not require any justification for the destination of the funds. The obtaining of the credit and the purchase of the good or service are thus here completely independent. This independence has the advantage of freedom but the main disadvantage is that in case of dispute with the seller and non-delivery of the property for example you are required to repay your credit under the terms of the contract. In addition, if you do not get your financing and you have already signed a purchase order you will be unable to pay the property if you do not have savings aside.

  • Revolving credit

The revolving credit is a type of unrestricted credit, since it consists of a reserve of money made available to the borrower, which he can use as he wishes and when he wishes it in one or more times.

  • Personal loan

The personal credit can group different appellations under its name. This is a non-earmarked credit but can sometimes be called a wedding credit or travel credit so as to talk more to the consumer, but the amount of money can be used by the borrower as he or she does. wish it. It can therefore be financing of property, service or cash or other things (excluding real estate).

Consumer credit: how does it work?

Consumer credit: how does it work?

Consumer credit is characterized by:

  • Amounts between € 200 and € 75,000
  • Duration of 3 months minimum to a few years
  • A little binding

Like any credit, the consumer credit is a contract between a lending institution and a borrower, where the first agrees to lend a set amount of money and the second agrees to repay.

Consumer credit includes:

  • A sum borrowed: capital
  • APR (the annual percentage rate of charge) which is the rate to be used for any comparison
  • Duration, amount and number of monthly payments
  • Guarantees and any insurance
  • The total cost of credit

Conso credit is governed by the Consumer Code and provides the borrower with a right of withdrawal of 14 calendar days.

Personal loan: how long for what amount?


Before subscribing to a personal loan, it is essential to calculate the monthly payments that will have to be made. This is the condition sine qua non for budgeting the repayment of the personal loan. Applying the appropriate calculation method makes it possible to know which amount to borrow according to the desired duration. The repayment of a personal loan involves taking into account one’s own credit possibilities.

How to calculate the monthly payments of a personal loan?

How to calculate the monthly payments of a personal loan?

To calculate the monthly payments (m) of a personal loan , several data are to be taken into account. The following simplified mathematical formula should be applied:
M (monthly payments) = c * t / (1 – 1 / (1 + t) ^ n)
* symbolizes multiplication and ^ power

Take the following example:

Borrowed capital (C): € 4,000
Annual rate (T): 3% (or 0.03), which is a monthly rate (t) that is equal to T / 12 (0.0025);
Duration of credit (power n or ^ n): 48 months
In this case, each monthly payment will be 89 €.

The repayment of a personal loan takes into account, for the calculation of the interest on the loan, the capital remaining due. This decreases over the months since each monthly payment consists of a portion of the interest and a fraction of the capital borrowed.

Use a credit calculator

credit calculator

The refractory to mental arithmetic or mathematical formulas have a reliable and quick solution to calculate the monthly payments depending on the duration of the desired personal loan and the amount borrowed. The borrower must be able to support until the last deadline the financial burden that the credit represents.

The online personal loan calculator takes into account the borrowed capital, the interest rate and the duration of the loan. It also takes into account the capital left over in order to provide the user with a result that is as accurate as possible.

Thus, it is possible to know what credit duration to choose according to the desired capital, and this in a few seconds. It is therefore fast to build different scenarios before finding the best ratio amount/duration that is.

Online banks generally have their own calculator available, which allows the consumer to compare what the banks are offering in terms of the amount to borrow against a term. Just specify:

  • The desired amount of credit;
  • The interest rate ;
  • The duration of the credit, generally between 12 and 60 months.

After validating his choice, the user can have a comparative of the cheapest personal loans of the market. It is then sufficient for him to opt for the solution that suits him best, that is to say for the one that is most suited to his ability to repay.

Leisure loans: we finance your purchases

At Multi crédit, we believe that a loan must be flexible and adaptable to all situations, whatever your plans and desires. With this in mind, we can offer you a simple leisure loan offer tailored to your needs. Entrust us your file and profit from the best rates of the market.

Ease, security, simplicity

leisure loan

A leisure loan is an easy solution to finance your private or family activities. Focusing on transparency and simplicity, we take care of your file to offer flexible financing that adapts to your projects , whatever they are:

  • Purchase of recreational equipment: watercraft, computer equipment
  • Financing of sports vehicles: mountain bikes, racing bikes, motorbikes, quads, sailboards, …
  • Etc.

Your request in just four steps

Your request in just four steps

Applying for a loan to finance your private activities has never been easier than with Multicredit! Apply for a leisure loan in just four steps:

  • Contact us by phone or through our online form to apply
  • Send us the necessary documents to study the file
  • We contact you quickly with a non-binding proposal
  • In case of agreement, receive your money within 15 days

Solution for all


Whatever your situation, our advisors are available to analyze your borrowing capacity and offer you, if possible, an advantageous offer that fits your budget as well as your needs . Borrow freely any amount from 3’000 to 300’000 Chf over 12 to 84 months with a favorable interest rate. Do you wish to benefit from an individualized offer? Do not hesitate to contact us to benefit from a free and confidential offer.

Business loan: finance any investment

Are you looking for cash to finance investments for your company? Discover our Business loan solutions! Simple, fast, convenient, our investment loans will allow you to provide your company with the necessary budget to prosper!

A solution for every situation


Each company being unique with its own needs, we offer individualized solutions. Thus, our Business investment loan offer adapts to your needs as well as the repayment capacity of your business:

  • Flexible terms : You determine the amount to borrow needed for your investments. Get a loan of 10,000 to 300,000 over a period of 12 to 84 months.
  • Fixed monthly payments: regardless of the expected repayment period, we offer fixed monthly payments with a very advantageous interest rate.
  • Simple, fast, convenient : with Multicredit, you get an offer very easily and without any administrative complication. Our team will take care of everything so you can focus on your projects !
  • An ideal loan for your Business loan investments: whether you need to renovate your premises, purchase equipment to maintain your business to the best of its competitiveness, or cash to inject into your cash, we can make a suitable proposal to your needs!
  • Customized solutions : we also offer debt redemption solutions related to your company.

A Business loan offer made easy


Do you manage a company and seek a Business loan for future investments? Do not hesitate to contact us to benefit from a confidential offer that does not commit you to anything! Make your request by phone, via our form, or contact us for an appointment with one of our advisers!