Negotiating a loan is a matter of financial credibility and project soundness. You must seduce the lender by your project and attractive profile. Read

The current low interest rate environment is very favorable to credit. Even if you do not have an outstanding credit, choosing an unsuitable rate, a loan amount that is too high, or a lack of personal input can degrade your ability to repay in the long term. Why you need to know how to negotiate a loan.

Negotiating a loan is a question of financial credibility and the soundness of the credit project. The rate that you are charged and the amount granted will depend on your financial capacity. You must therefore seduce the lender with your project and an attractive profile.


Fit a good loan project

Fit a good loan project

Any loan proposal must contain a good assessment of the borrower’s financial capacity and debt ratio. Especially in the case of personal loan. After consulting the offers of the market, find out about the available assistance which have a downward impact on the cost of credit. Do not hesitate to play the competition. Privilege specialized structures that courte new customers after comparing their proposals.


Be a good negotiator

Be a good negotiator

The loan rate is important in trading, but it is not the only element. The insurance, the modulation of the deadlines, the double monthly payment or the options of repayments are important details. If, for example, you accept the insurance of your creditor or you open a life insurance policy, you can benefit from lower rates.

However, you should pay attention to the insurance rate to resort to, in case the lender requires you to a competing insurer. The purpose of the negotiation is to reduce the rates, to lower or cancel the file fees as well as the penalties in case of early repayment.

Well negotiating your loan is also a question of consideration that you propose to the banker. To be in a strong position, the borrower must:

  • have a good debt ratio

    have a good debt ratio

Any lender appreciates a client who masters his debt. In general, your debt ratio is considered good between 10 and 15%. Beyond 33%, Neiertz law requires, credit institutions are reluctant to lend unless your resources are important. Remember to simulate your online debt ratio.


  • defend important resources

In addition to a good debt ratio, having significant resources can attract the favor of your banker. The more resources you have (income, wealth and others), the lower the debt ratio will influence the banker’s decision.

When you remove the charges from the past debts of your resources, you get the “remainder to live” whose size is decisive for any lender. Some financial institutions require a minimum of 600 € of rest to live below which you risk a refusal.


  • make contributions to the loan

    make contributions to the loan

A significant contribution is a strong argument for negotiating a loan. It is even mandatory in case of home loan to deposit at least 10% of the value of the property to cover notarial fees. The lenders reward with rate bonuses, contributions over 20%. Thus, bringing savings proves to the creditor your ability to save.


  • manage your finances well

    manage your finances well

The way you manage your accounts is an element of credibility sought by creditors. That’s why they ask you for account statements going back over the last three years. A good record will give you a definite advantage over your lender.

The period of low interest rate is coming to an end. Also, negotiating your loan becomes a necessity for all those who want to borrow. To do this, you must prepare your loan by simulating it and resort to advice. But even with an excellent project, you will need to present a credible financial situation to win the negotiations. top