In the Netherlands, the personal loan is by far the best-known loan form. With this loan form you borrow an amount once, the interest payment and repayment are then done according to the guidelines of the lender. In most cases, the interest payment and repayment will take place monthly, but you can make other arrangements with the lender for this.
The term of a personal loan is generally no longer than 2 years, but exceptions can be made for this by the lender. The personal loan is characterized by a fixed interest rate for the entire period, so you do not have to deal with a variable interest rate.
When do I take out a personal loan?
Because the personal loan is a reasonably secure loan, so you always know exactly what amount you have to pay in repayment and interest, this loan is often taken out for the purchase of a car. The personal loan is therefore also sometimes called 'car loan'. In addition, you can also take out the personal loan if you have to make a (large) purchase once, for example for the purchase of a new washing machine.
How does taking out a personal loan work?
The moment you turn to a lender to take out a personal loan, a BKR check will first be carried out. By means of this 'BKR check', the lender checks whether you have already had a loan in the past and whether you have repaid it according to the contract. If you have been a defaulter in the past, this will come up during the BKR check.
The next step is for the lender to check your creditworthiness, for example, your income and job security. Based on the creditworthiness, the lender will announce a 'maximum loan amount'. The maximum loan amount is the maximum amount that you can borrow with the loan form 'personal loan'. Do you think the loan amount is too low? Then you can also see whether you can borrow more money with other loan forms, for example with a revolving credit.
Transfer your loan
After your creditworthiness has been assessed, the terms and conditions have been set and you have signed for the loan, the amount will be transferred to your account in one go. From that moment on, the contract takes effect, which means that you will have to pay interest and principal.
Cheapest Personal Loans
The personal loan is one of the loan types that are the most advantageous in the long term. The term of a personal loan is usually 1 to 2 years and the interest rate is fixed. You can take out a personal loan with almost any American lender, but the maximum loan amount differs per provider. Below you can find the cheapest personal loan providers of the moment. On Bridge Loans official website, you can immediately view the maximum you can borrow and what the total costs (APR) will be.