The repurchase of credit is the solution which makes it possible for any borrower to decrease the total amount of his monthly repayments of credits. This operation has the possibility of grouping all your credits or only a part, to make only one loan. The minimum loan amount and the maximum amount are capped on loan redemptions.
Depending on the type of credit, the loan amount does not have the same criteria at the level of the thresholds of the ceilings. If we are talking about revolving credit, personal loan, restricted credit or home loan the ceilings vary, the lowest thresholds as the highest loan amounts are very different.
What are the minimum amounts of all loans in 2020
For a credit consolidation, the total amount of the loan will be defined according to the type of operation and the profile of the borrower. The loan amounts are very often more substantial than for a so-called classic loan because we take back several credits and therefore the total amount is higher.
Each bank and each financial institution has its own criteria to define the minimum amount of loans. We will see the minimum and maximum amount for all types of loans.
Revolving credit is the credit that has the smallest loan amount. It often starts from $ 200 and initially stops at $ 21,500, but since the credit is refillable, it can go much higher.
For personal consumer loans, the minimum amount is $ 500 and the maximum loan amount is capped at $ 75,000. The repayment term for a personal loan is more than 3 months and often stops at 84 months or 7 years.
For mortgage, it is preferable to have a mortgage loan amount greater than $ 50,000 because the notary or surety fees are high.
What is the minimum borrowing amount to have to buy a loan repurchase?
Our financial lenders intervene from a certain amount of money when they grant a loan consolidation to a borrower. This commercial operation must be profitable for both the lender and the applicant.
There are 4 different types of offers:
- The mini loan buyout
- The purchase of consumer loans
- The redemption of consumer loans with mortgage guarantee
- The repurchase of mortgage
Let’s start with the mini loan buy-back so named because the minimum loan amount is $ 5,000. This mini credit buy-back is very restrictive. It takes at least 2 credits or credit and a bank overdraft, no rejection or unpaid with a repayment period between 1 year and 8 years must 96 months maximum.
This mini buy-back is very often carried out with its bank or with a financial organization better known for making revolving credits and which make credits on short durations or repurchases of consumer loans on small amounts.
A little reminder: Given that account statements are required without a bank incident, it will be very rare that we can do this kind of file.
The redemption of a consumer loan begins with the minimum amount of $ 7,650 in debt. But it is not because the threshold of the amount is reached that we will intervene. It takes at least a total of loan and cash of $ 20,000 for your broker Good Finance to offer you the study of your file.
Whether you are a tenant borrower or an owner borrower the minimum amount is the same for all borrowers. The maximum duration is 15 years or 180 months for owner borrowers, on the other hand for tenant borrowers the maximum duration is 144 months or 12 years.
The repurchase of consumer loans with a mortgage guarantee
The repurchase of consumer loans with a mortgage guarantee concerns only the borrower owner because it is necessary to own a real estate in order to be able to put it as collateral. If we offer a guarantee to the lender, this limits his risk and he can lend a much larger sum of money than buying back consumer loans without guarantee.
If your file is very tense because the total sum of the loans is very high or the amount of your monthly payments is important it is better to offer a property to mortgage in order to obtain its repurchase more easily. The minimum credit amount for the repurchase of credit starts at $ 22,000.
Borrowing interest rates are currently very low in 2020, it happens that even a good quality dossier is refused because of the usurious rate. In order to overcome this drawback, it is preferable to include a substantial amount of cash over a very long period. It is always possible thereafter to reduce the duration of the repurchase on condition of respecting the debt ratio and the amount of the remainder to live defined by the lender. The maximum duration of the credit is 35 years or 420 months.