YY Credit is a public limited company with a board of directors and supervisory board created in 2009. Previously called Union loan, this credit institution changed its name in 2016, after having launched its activity in Italy. YY Credit specializes in lending to individuals via internet. This institution is the only one (other than banking institutions) to date to have accreditation “credit institution providing investment services”, issued by the Prudential Supervisory Authority.
YY Credit targets two categories of consumers: the consumer who wants to make a loan and the consumer who is willing to invest his money. At this stage, it is important to remind future investors that in addition to being of age and having a bank account, two of the following three conditions must be justified in order to become an investor: to justify a financial capital of at least 500 000 euros, to justify an activity of active investor in the financial market and / or to justify a professional activity in the sectors of corporate / market / bank / insurance. In addition, YY Credit reminds future investors that the amount of the first rent must be at least 1000 euros (the amounts of other payments have no minimum or maximum). In addition, for borrowers, YY Credit has defined criteria to which the consumer must respond: he must be aged between 18 and 70, reside in Metropolitan France (absent from his territories, YY Credit excludes the DOM / TOM and the Corsica), not to have been stuck at the BB Bank and to have stable incomes.
YY Credit offers consumers only consumer credit and the purchase of credit. It is not possible to make a revolving credit, real estate or business creation with this establishment. Nevertheless, listening to its potential customers, the company offers solutions with partners.
Credit with YY Credit
When the consumer goes to YY Credit, two choices are offered to him: borrow or invest. When the consumer is a potential borrower, he will be able to use the consumer credit simulator offered to him. He can then choose on the one hand the project and on the other hand the desired amount. As said before, YY Credit does not offer revolving credit or mortgage. Nevertheless, these types of credit appear in the drop-down menu of the “project” item. If the consumer selects his products, he will be referred to new pages where he will learn about the various partnerships offered by YY Credit to finance its products. Thus in the case of a revolving credit, the institution will propose solutions with the Empruntis group, while for a mortgage, it will return the consumer to the company.
The borrower will have the choice with different projects
At this stage only the desired amount is requested. This amount must be between 3000 and 40000 euros. The duration is between 24 and 72 months. The customer will then launch the credit simulation. At first, the customer will be reminded that he will not go through a bank to make his credit. The sum of the credit requested is recalled to the consumer before he launches the rest of the simulation. In a second step, the borrower must enter his email address. He will then have to inform of his situation, his income, his charges, his banking identity.
After this information, the borrower can if he wishes to subscribe to an insurance with his credit. YY Credit offers two types of insurance: basic insurance and basic insurance coupled with loss of employment insurance. It is important to note that these insurances have a significant cost, ranging from 20 euros per month for the standard version to 32 euros per month, for the full version. The borrower also has the legal right to opt out of insurance, which is optional for this type of credit. In this case, a new window reminding him of the risks he incurs.
Once the choice of insurance is made
Different credit proposals based on the amount the borrower has requested, will be offered. These offers consist of the amount of the monthly payment, the duration of the credit as well as the APR (Global Annual Effective Rate), as well as the total cost of the credit (with the distribution between interest and service charges). For a loan of 16000 euros, the proposals will therefore for example, 255.44 euros per month for 72 months with an APR of 5.50% (and a lending rate of 4.70%) to 691.54 euros per month for a repayment term of 24 months at an APR of 5.03% (and a lending rate of 3.54%). It is necessary at this stage to remind the borrower that although the monthly payment decreases when borrowing in the long term, credit will cost him more money. As the risk for the lender is always greater over a longer period, the APRs are less advantageous, in order to protect themselves from possible non-payments by the borrower. In the example above, in the case where the borrower chooses a repayment term of 24 months, it will be indicated to him that the total cost of his credit will be 820.96 euros (including 596.91 euros for interest). and 224 euros for service charges), while when it will be 72 months, the credit will be 2695.68 euros (including 2391.68 euros interest and 304 euros service fees), all without the possible cost of optional insurance.
YY Credit’s answer
The client is subsequently issued a response at the end of his request. If the answer is a pre-acceptance, the borrower has the option to print the credit agreement. He is also reminded that it will be returned by post as a result of the seizure. The credit agreement covers the different terms of the credit agreement, ranging from the identity of the two parties to the general conditions, including a complete summary of the borrower’s request (type of credit, amount, duration, rate debtor, APR, service charges etc.). This 20-page contract must be completed and accompanied by a number of additional documents such as: the last bank statement (the last 30 days must be shown), the last income tax notice, the last pay slip the borrower, the duly signed warrant and the photocopy of an identity document. YY Credit reminds its borrower that he must return his documents but that the shipping costs are offered to him, in case he chose to send the documents by post. It is also possible for the consumer to sign his contract electronically, this speeds up the process. This approach is accessible at any time, if the consumer wishes that his request is taken more quickly.
Acceptance of the offer
YY Credit indicates on its site that the definitive answer is given to the consumer within 24 hours after reception of the complete file. When the request is accepted, the consumer then has 15 days to validate the offer. After this period, the offer is no longer valid, the consumer will have to take a new procedure to subscribe to a new contract. During this 15-day period, YY Credit can not return to its offer. Once the two parties have agreed, within the statutory withdrawal period that is granted to the consumer (ie 14 days from the date of signing the contract), YY Credit is committed to release the funds as quickly as possible. possible. The borrower must be aware of the possibility of having this withdrawal period lifted (by making a clear written request) in order to accelerate the raising of funds. When the borrower is in possession of the funds and therefore the withdrawal period has expired, he is bound to honor this debt by paying the refund, as defined when the credit agreement was set up. between the two parties.
YY Credit is a unique business
as it offers individuals the opportunity to finance projects or invest money. This company is very competitive because it offers more favorable APRs than most banks. It minimizes its costs to make it profitable because it does not take margins to finance operating costs. In addition, a company based in France 100%, it shows a speed of data processing through its treatment by internet. It is finally a company that wants to listen to the consumer and offers actions such as taking the first monthly payment the 4th of the month following the raising of funds, to allow the consumer to organize. top