If you want to borrow money, you must take into account all kinds of conditions. There are conditions that you as a consumer must meet. But also conditions that apply to the loan itself. These conditions depend on the loan form that you choose.
Which loan do you choose?
If you want to take out a loan, you can choose from various loan forms. The best known are the Personal Loan and the Continuous loan. It depends, among other things, on your spending objective which loan is suitable for you. The conditions of one loan form fit better with your spending objective than the conditions of the other loan form.
Conditions Personal Loan
The Personal Loan is the most popular form of loan. Very understandable because the conditions are aimed at certainty. As a consumer you know exactly where you stand. The Personal Loan is very suitable if you know exactly what amount you need, for example for the purchase of a car. What are the conditions for a Personal Loan?
Conditions for security and certainty
Fixed loan amount
You borrow an agreed amount and you get it credited to your account. That is it. You cannot withdraw the amounts that you pay off on your Personal Loan. That makes the loan less flexible, but the advantage is that you have fully repaid the loan at the end of the term.
The maximum you can borrow depends on the level of your fixed income, your age, your living and family situation and whether you have a BKR registration.
A Personal Loan has a fixed term. This means that you pay off the loan within a set number of months. You can choose from different durations. With a short term you pay a higher monthly amount than with a long term. But you also finish paying off earlier, which means that the total costs of the loan are lower. The choice is yours.
The interest on the Personal Loan is fixed throughout the term. If the interest rate rises or falls during that period, it will not affect your loan. That interest remains the same. No unexpected increase in your costs.
Because the interest and the term are fixed, you pay the same monthly amount every month. That way you keep a better grip on your money.
Conditions for flexibility
Do you want to pay extra on your Personal Loan? With some providers you pay a fine in that case. This is not the case with us. With all our Personal Loans you can always repay without penalty. This way you can pay off the loan faster.
Conditions Ongoing loan
A Continuous loan can be a solution if you cannot determine the exact costs of your spending goal in advance. It is a flexible loan form that gives you a lot of freedom.
What are the conditions for a Continuous loan?
Conditions for flexibility
Withdraw money until your loan limit
With a Continuous loan you get a loan limit from the bank. That means that you can withdraw money up to a certain amount. You decide how much you want to include. You can also immediately withdraw repaid amounts, as long as you do not exceed the loan limit. You only pay interest on the amount withdrawn.
You cannot exceed the loan limit and therefore cannot withdraw more money than agreed. The level of your loan limit mainly depends on the level of your fixed income, your age, your living and family situation and whether you have a BKR registration.
The interest rate of a Continuous loan is not fixed, but is variable. So one month the interest can be higher than the other month. This does not matter for the installment amount. You agree on a fixed amount that is debited from your bank account every month. That fixed amount consists of an interest component and a repayment component. If the interest rate rises, your interest part becomes larger and the repayment part smaller. You then take longer to repay the loan.
With a Continuous loan you can always pay off as much as you want and as often as you want.
The Continuous loan is flexible because you can redeem repayments and because the interest can change. This flexibility has consequences for the duration. That is not certain with a Continuous loan. If you withdraw drawn amounts, it will take longer before you have repaid the loan. Even if interest rates rise, the term becomes longer. The interest part of your fixed monthly amount then becomes larger and as a result the repayment part becomes smaller. You therefore take longer to repay your loan.
Conditions for security
Fixed monthly installments
Once you have withdrawn money, a fixed amount is deducted from your regular bank account every month. That monthly amount consists of an interest component and a repayment component.
Since 1 May 2019 a new maximum duration of 15 years applies to new continuous loanen. Older continuous loanen often have no fixed duration. Nowadays, banks sometimes limit the possibilities, for example by reducing the loan limit every month. This way the loan cannot continue indefinitely. Ask your consultant for the exact conditions when you conclude Standing loan.