As part of a pool of loans (real estate, consumption) the release of funds is the last stage of the operation. However, who releases the funds? What is the delay?
Unlocking funds: what does it consist of?
Unlocking funds is the last step in the schedule of a credit consolidation project. It consists for the bank or credit institution making the redemption, to pay the total amount of credits contracted by the borrower. In other words, this release corresponds to the moment when the amounts borrowed are credited. However, the availability of funds depends mainly on the nature of the loans involved in the operation and possibly the new financing need. Thus, for the grouping of mortgage loans, the release of funds is done directly with the notary. While for a consolidation of consumer credit, the release will be directly from creditors.
Credit redemption: the flow?
The course of this step varies depending on the type of transaction (real estate, consumption), the terms are clearly indicated in the information sheet of each lender. For a group of mortgage loans, the lending institution makes the funds available to the notary after the final signature of the loan offer. Thus, it is the notary who will be responsible for prepaying the remaining amounts due from current “real estate” loans. It is also the notary who pays the borrower a possible need for financing. For a consolidation of consumer credit, it is the new lender who will repay each creditor independently. Thus, it replaces the old lenders and in the end, the borrower has only one credit monthly lightened.
What is the average time to release funds?
In the credit pool, the release period depends mainly on the type of credit surrender. For a repurchase of real estate credit with intervention of the notary, the delay of an unblocking of the funds varies between 48 hours and 72 hours. For a purchase of consumer credit, the release of funds takes effect immediately after receipt by the bank of the signed loan offer. Namely that the release of funds is done only after the period of reflection and retraction. However, it is possible to accelerate this last step under certain conditions. But in reality this period depends on each lending institution. These delays have been observed in some credit institutions, they depend primarily on working days and the assumption of responsibility for the transaction by the analyst who publishes the loan offer.