Uncategorized

What to take into account when applying for a loan | Apply for a loan

You need another car, but no money for it. Or you have just divorced and are looking for household effects, but cannot afford that now. It used to be possible to borrow fairly unlimited money, but since the economic crisis that has become a lot more difficult. The rules for banks and other lenders have been considerably tightened when giving loans to consumers.

Orient yourself well in search of the right provider and request quotes from multiple lenders. Compare them critically with each other. Watch out with a low interest rate. It often wants to be an entry-level interest that is intended to attract new customers. After the promotional period, the interest rate can become considerably higher. You can calculate for yourself what you can borrow in the most responsible way according to the rules drawn up by the Dutch Banking Association, in collaboration with the Ministry of Finance and the Netherlands Authority for the Financial Markets (AFM).

Type of loan

Type of loan

Think carefully beforehand what you want to use the loan for. If the money is needed for a new car, choose a loan where you pay off monthly, so that you are not still paying when the car is out of the house for a long time.

The different lenders

The different lenders

In addition to banks, there are also specialized lenders. It often turns out that they can offer cheaper loans because they manage to keep their costs lower. They usually work via the internet. But don’t just work with a provider. Request multiple quotes and compare them well.

You have savings yourself

You have savings yourself

In general it is better not to take out a loan if you have savings in hand. Make a comparison of the interest that you have to pay for the loan and that you get in the savings account. You usually pay more interest for a loan. Only if you need money for a short period can you consider borrowing in addition to the savings. Certainly if you have to pay withdrawal costs or a fine if you withdraw money from the savings account.

The loan conditions

The loan conditions

Carefully read the offer from the lender. If the loan amount is higher than you have requested, it could be that insurance is linked to this. Also note the interest rate. Is it fixed for the entire duration or variable? In the latter case, you do not know what your monthly payments will be like in the future. Is it possible to adjust the term of the loan and can it be repaid early without penalty? It is possible that the lender also lets you pay for the costs of advice or mediation. So something to keep in mind.

Changes in your personal situation

Changes in your personal situation

In order to be able to continue paying the costs of the loan in the future, it is good to take into account changes that may occur. For example, is there a chance that you will become unemployed or will children live in rooms? These are all situations that affect your finances and that you must take into account. Such risks can be insured, but that is often relatively expensive. 

About

No Comments

Leave a Comment