Part of the housing financing gap, estimated at 6 billion euros per year, must be covered by mortgage lending companies, whose licensing is now being carried out on the initiative of the Ministry of National Economy and Finance.
These are companies financed primarily by funds, but also by other organizations such as insurance companies, for the purpose of lending to individuals for consumer and home loans, as well as to businesses – whether refinancing or new lending.
A key feature of credit card companies is that because they do not rely on customer deposits, they have greater flexibility in their lending criteria and pricing options, depending on the customer’s risk.
This flexibility does not necessarily mean lower interest rates, quite the opposite. This depends on the category in which the lending company operates and specializes and, of course, on the client’s profile and the credit risk associated with providing him with money. Borrowers who have been saddled in the past or are still saddled with bad credit or considered high risk may be financed at a substantially higher interest rate than the average bank lending rate, while other categories may pay the same or even lower rate.