Under the acronym LPS hides the name Loan for Public Servants. This financial institution is specialized in insurance as in the distribution of financing solutions ; from consumer loans to financing a vehicle or to realizing one’s dreams of travel. In its catalog of financial products, there is the solution of the purchase of credits. What are the advantages offered by LPS? How to take advantage of this financial solution?
Redemption of credits: assets and operations according to LPS
Who is interested in buying back credits and what is the main idea of this financing solution? Households who are interested in the solution of the purchase of credits are usually homes that feel sore by the bills or simply wish to relax their budget by reducing the amount of monthly repayment, the operation of the proposed purchase of credits the LPS is identical to that of other financial institutions. Thus, it should be remembered that the recovery of the credits is intended to reduce the monthly payments by bringing all outstanding credit into a single loan. This option is possible only if the duration of the loan, and mechanically the total cost of credit, is increased. Redeeming your credits can reduce your monthly payments by 60%.
What are the solutions proposed by the LPS?
The LPS offers several solutions for the redemption of credits:
- Consolidate consumer credit.
- Group your real estate loans.
- Collect real estate loans with consumer credit (the mixed credit).
The loan redemption solution is aimed primarily at people with a debt ratio of less than 35%. This rate represents the ratio of resources to household expenses. It is difficult to grant a loan buyback to a household whose ratio is higher than 35% since the risks of non-repayment of drafts are multiplied.
In addition, it should be noted that, in the case of repurchase of mortgages ( the zero-rate loan and the 1% loan are excluded from the buy-back scheme ), or in the case of a redemption of mixed credits, it is generally necessary to give firm guarantees to the lender. The security requested is usually the mortgage of the property which includes the use of a notary to draw up the deed. This recourse to a cost which can be integrated into the amount of the loan which concerns the repurchase of credits.
In addition, it is also important to note that the repayment of outstanding loans in advance leads to cancellation fees. You have to read the terms and conditions of the contracts to know the amount of their fees or contact the various credit organizations directly.
Get in touch with a LPS finance advisor
To better understand the benefits of buying back credits, you can use the simulation tool on the online portal. You get, in a few clicks, a buy-back proposal. This proposal does not act as an acceptance of your file. A counselor needs to study your file.