Borrow through a Personal Loan

Borrow through a Personal Loan

Simply put, you get a personal loan by requesting one or more quotes. Yet it is good to know why you exactly want a personal loan. The personal loan is one of the most common loans in the Netherlands. This loan is popular because your personal needs and wishes are taken into account. The usually lower interest rate on this loan is another reason why this loan is so popular. The interest on the personal loan is often not only low, but is also often fixed for the duration of your loan.

The personal loan therefore offers more certainty in the area of ​​interest rate risk than, for example, a revolving credit. The amount that you pay in installments and interest per month is therefore fixed. This is an advantage because you will not be faced with unpleasant surprises, but this can also be a disadvantage because early repayment is prohibited and entails a fine. If you need money for a renovation or the purchase of an expensive product such as a car or motorcycle, the personal loan can be a good solution. The low interest rate and the security make the personal loan a form of borrowing that is very popular.

Why or not a personal loan

Why or not a personal loan

One reason why you should not opt ​​for a personal loan is that it is not usually possible to borrow money. This means that with a loan of 10,000 euros you can later borrow another 2,000 euros with the same personal loan. This is restrictive on the one hand, but also safe on the other so that you do not keep borrowing money. Another side effect of the personal loan is that you have to pay a fine if you want to repay early.

Paying a penalty for early repayment

Paying a penalty for early repayment

This ensures less flexibility. This fine exists because the lender wants to be compensated for the fixed term of your personal Loan. The bank misses out on interest income because the loan has a shorter term due to the early repayment. Reasons why people do borrow money through a personal loan are: the low fixed interest rate, the security and the fixed monthly charges. The interest rates of different credit providers differ and that is why it is easiest to inquire online with the provider to know exactly what the requested interest rate is.


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