Personal loan or assigned loan: which one to choose?

Personal loan or assigned loan: which one to choose?


The personal loan and the assigned loan are credits reserved for individuals. These two credits make it possible to finance needs in everyday life.

Please find useful information here about personal loan and earmarked loan to help you decide between the two.

What is a personal loan?

It is a kind of consumer credit which consists of making a sum of money available to the borrower to finance purchases or non-real estate projects or to meet a cash need. These projects can include for example the preparation of a wedding, the purchase of a car or household appliances,…

For the case of the personal loan, the borrower can obtain up to 75,000 euros. It should not provide proof of the use of the sum borrowed. He therefore has the right to use the capital as he sees fit. The borrower can make the purchases of his choice at any time. As a result, the personal loan can allow the borrower to have additional cash or to deal with unforeseen events.

The amount borrowed depends on the consumer’s debt ratio and repayment capacity.

All borrowing conditions are fixed in advance in the credit agreement and no longer change. The amount of the monthly payments and the borrowing rates remain unchanged during the repayment period.

You can find more information about personal credit on the website .

What is an assigned loan?

The affected loan is also a category of consumer credit. It is a method of financing granted by banks or credit institutions. The amount borrowed is intended to finance a project or a purchase well determined in advance in the credit agreement. It can finance, among other things, the purchase of a car or household equipment, a trip, etc.

This credit is thus sometimes offered at points of sale. If the purchase does not take place, the credit will also be cancelled.

Note that the funds cannot be used for anything other than what is defined in the contract.

The consumer should specify in his credit application the good or service and its price. The amount granted should not exceed 75,000 euros, repayable over a period of more than 3 months.

What is the difference between personal loan and assigned loan?

In the case of a personal loan contract , the borrower can use the amount granted according to his needs. He is not obliged to justify the nature of his purchase to his lending establishment. While for the case of the assigned loan, the use of the funds is predetermined in the credit agreement. The use would be under the control of the lender.

Both credits can finance the same projects. On the other hand, unlike personal credit, the assigned loan cannot cover a cash need.

For the personal credit contract, the amount borrowed will be paid into the borrower’s account. On the other hand, the seller receives the allocated loan amount directly.