Rates applied in a work loan
Before resorting to a credit to finance its work, it is important to understand what it corresponds to. It is also necessary to determine the interest rate applied to determine the credit offer that must be chosen.
Compare your work loan
Above all, it should be known that the rate of a work loan varies depending on the type of financing chosen.
Loan works at an interest rate 0%
Indeed, some work loans are offered at a zero interest rate. This is not necessarily the case for other types of work financing where the rate applied corresponds to a percentage of the borrowed capital plus the sum of money needed to finance the work.
fixed rate credit
With a fixed rate loan, the interest rate remains unchanged throughout the repayment period: the monthly payment is therefore always the same throughout the period of validity of the credit.
Floating rate credit
On the other hand, in the case of a variable rate loan, the interest rate is revised each year from an index that may, therefore, vary the amount of the monthly payment. For the borrower, taking into account these two types of interest rates is important so that he can choose the right type of credit for his situation.
In addition to the interest rate, there is also the overall effective rate that must be verified before subscribing to a work financing credit. This rate, which includes the interest rate plus the various fees, is always displayed on a credit offer.
The type of interest rate applied depends on the credit institution: if a bank can offer a fixed rate loan, another financial institution may grant a variable rate loan.