Starting a family requires a budget that can accompany the young household loan. This loan is granted for the installation of young households. Read more
Even though the number of marriages is decreasing in France, many young households are forming around other forms of union. In any case, the project of living together and starting a family requires a budget that can accompany the young household loan . This loan product is granted for the installation of young households .
Under what conditions do you get a young loan?
The young household loan comes in support of the couple’s first moments . It provides financing for installation and equipment purchases such as appliances, furniture, TV, etc. Applicants for this loan must:
- to be under 35 years old on the date of the request
- have less than four years of union (marriage, pacs)
- have at least one dependent child
- to be in concubinage with a first child under 2 years recognized by the lender
- do not take out a loan for installation
- apply for loan in the first two years of the union
In addition, the total of all gross annual resources of the household (taxable and non-taxable income) must remain under a ceiling set by the lending institution. This ceiling is fixed according to the number of tax persons present in the household (couple with 1 child, a couple without children, etc.)
The young household loan is not intended for a real estate purchase or the financing of a debt.
What amount and at what rate?
The young household loan is a fuel credit that can be as high as € 6,000 with a nominal rate of 1%. The family allowance fund (CAF) asks to benefit from it, to have a family quotient that does not exceed 720 €. For this fund, the amount allocated increases up to 90% of the purchase value of equipment.
What documents to provide for a young household loan?
There are some mandatory documents to provide for a young household loan:
- First, a duly completed copy of the application.
- A copy of the tax or non-taxation notice for the year preceding the application Consider adding the other notices in case of marriage.
- A copy of the original attestation of commitment to the PACS (in case of the Civil Solidarity Pact) or the family booklet.
Who can provide a young household loan?
Among the young household loan providers are:
- the family allowance fund
- the solidarity funds of the civil servants
- pension and provident funds
- various social security funds
How is the refund?
The repayment period can range from 30 to 48 months depending on the nature of the loan and the lender .
The monthly payments are equal and they start after the first month of the release of the money. The samples are taken from the borrower’s bank account.
Be aware that for some social funds (notary office …) the total refund is required in case of:
- Death of borrowing
- Abrupt modification without notice affecting the home of the borrower
- The withdrawal of the borrower from the services of the credit union.
For other funds, 2% of the capital is retained on the loan payments of more than 1000 €, granted to people over 64 to cover the risk of total and irreversible loss of autonomy or death.
It is worth testing its repayment capacity by using the young household credit simulators present online.