Loan Application: Why And How To Do A Simulation?

When you have an urgent need for cash, applying for a loan is one of the most obvious ways to quickly find an available amount. If you opt for a mini-loan, you can even receive a transfer in just 24 hours. Before you start, remember that it is important to compare several offers using an online simulator. We will explain why and how to do a credit simulation.

1- Where can one do a credit simulation?

All the sites that offer loans have online simulators. These tools are free and without any obligation.

Their purpose is to give users a preliminary estimate of their monthly payments so they can choose and take out a loan with full knowledge.

Running a loan simulation allows the borrower to:
• be well-informed before committing.
• compare several types of loans, such as a revolving credit or a FLOA mini loan, for example.

2- Why do an online credit simulation?

Loan simulation is an essential preliminary step before taking out a loan. Online simulators are available to internet users on all specialized sites to give them an initial estimate of the monthly payments and help them calculate their borrowing capacity.

These free online tools also have the advantage of making it easier to compare different loan offers. Running a simulation helps clarify the terms of the loan and better consider all its characteristics, such as the interest rate, repayment duration, and the amount of the monthly payments.

Even though the results from these simulators are only indicative, they can provide you with an initial overview of the different options available to you. As in many other fields, when choosing a loan, it is always good to compare offers and leverage competition.

3- How to perform a credit simulation?

Online simulators are easy-to-use tools. They are designed to allow you to simply and quickly calculate the amount of your future monthly payments.

Generally, you just need to indicate the amount you would like to borrow to finance a project or to deal with an emergency, such as vehicle repairs. The simulator then gives you an initial estimate of the amount of your future monthly payments, based on the repayment period.

In the case of a traditional loan, the longer the repayment period, the lower the monthly payment amount. Thanks to the figures provided by the online simulator, you can adjust the repayment period according to your financial capabilities and maintain a sufficient disposable income to cover your daily expenses.

Note: Mini-loans operate slightly differently. In these types of offers, the borrowed amount is limited (up to an average of €3,000) and the repayment period is shortened.
When you apply for a mini-loan online, this type of repayment is made in a maximum of four installments.

The first installment (which includes borrowing fees) is deducted on the day the loan is taken out. The other monthly payments are deducted over the following three months. Thus, you only incur debt over a short period, to meet a temporary liquidity need.