Permanent loan

The permanent loan

Similar names of the permanent loan:
- Revolving credit
- Money reserve
- Permanent credit

Unlike the depreciable loan, the capital of which necessarily decreases as the monthly payments until full repayment at the end of the term, the permanent loan is a global authorization, a “line of competition” almost permanent in fact. The capital reimbursed at each monthly payment can be reused by transfer or by sending a check.

- Its duration is initially 1 year renewable.
- Its amount varies from € 500 to € 21,000 (rarely more), but the permanent loan is generally in a range of € 1,500 to € 3,000.
- Taking into account the possibilities offered, the permanent loan generally has a higher rate than a conventional amortizable loan (personal loan).
- Excluding any deposit, no particular guarantee is required.


OltottMesz's opinion:

Ideally, the amortizable loan (personal loan) should be used for the purchase of specific and significantly important goods, while the permanent loan will be used for an impulse purchase or for the preparation of projects (holidays for example).
The danger of a permanent loan lies in the temptation to constantly use the available capital. On the other hand, when properly used, the fact of having at one's disposal, without having to submit a new request for each need, a “permanent loan” can prove to be very useful and simplify life.