Loan to questions: how it works
After you have entered all the details online with the lender, he will check all your details. A banker check is performed to see if you have a banker registration. This is to see if you have other loans in progress and whether you can repay the requested loan.
You will then receive an offer from the lender with all the details of the requested loan. You also call this a quote. This is entirely without obligation and always free. Check all amounts and the additional costs. It is often referred to as an APR (Annual Cost Percentage). These are the total costs of the interest and any additional costs such as closing costs. Look carefully at what you spend per month on interest, costs and repayment.
Accept the offer?
Then send the requested documents that are in the quotation. Often it is a copy of your proof of identity, a bank statement with your income, or a proof with your address, employer or other institution. Often everything can be supplied digitally, which can differ per lender. Sometimes a real signature has to be put on a document which has to be sent back by regular mail.
Everything sent and completed
Now the entire application is complete and completed. You will receive the money in your bank account quickly. Often you also get a personal online page at the lender where you can find the entire agreement and all data. You can also make changes here and find the current status of your loan as well as make additional repayments.
Various types of lenders
Various types of lenders are listed in our overview. You can apply for a loan through an official bank or part of it.You also have lenders who lend money through crowdfunding. Hereby your loan is financed by investors who put money in your loan. Supply and demand of money then goes through a crowdfunding platform.
The credit intermediaries are another type of loan provider. They will process your loan application and then seek out the best loan for you, with a choice of several banks and institutions.
What is a single loan
With a single loan you borrow a fixed amount for a specific purpose. For example a new car, caravan, bathroom or boat. With a single loan you repay the loan in equal monthly installments and with a fixed term. A monthly installment consists of an amount for repayment and interest. At the end of the term you have paid off the full loan and interest costs and there are no additional costs or other surprises.
It is important that the duration is adjusted to the purpose for which you want to borrow. Imagine you want to borrow money for a new car. On average you drive the same car for 7 years. Then it is wise to adjust the duration to this period. Then after 7 years you can exchange this car, you have paid off the loan and you can immediately request a new loan if you wish.
You know where you stand
This type of loan therefore has a fixed term and a fixed monthly repayment. You know exactly what you have lost and at what interest. A single loan is the clearest loan there is. Everything is fixed in advance and there are no surprises or other side effects afterwards.
On this website you will also find a practical tool to see what you spend per month on interest and repayment.
With a single loan, the interest rate is fixed in advance, ie at the start of the contract and remains unchanged during the term of the loan.
Do you now have a revolving credit? Given the low current interest rate, transferring a revolving credit to a single loan has become very attractive. You reduce your loan, you have a fixed interest rate and you know in advance when the loan has been fully paid off.
What is a single loan:
- Pre-determined amount that is borrowed
- Fixed duration
- Fixed agreed interest
- Fixed monthly amount
- Certainty and clarity, at the end everything is redeemed
- Early repayment is often free of fines
- Registration and verification at the banker (credit registration office)
Products with a certain lifespan. The term of the loan should not be longer than the lifetime of the product, so that you have paid off the product if you want to replace it.
Benefits single loan
You will receive the loan amount paid in full at the start of the loan period. The interest is fixed when you take out the loan and is tax deductible. You always know exactly where you stand. The duration and the repayment schedule is fixed. You know when you will finish paying off.
Downside single loan
What you cannot do, unlike a revolving credit, is to withdraw the amount already repaid.
What is a credit
A revolving credit is a flexible loan that gives you extra financial room when you need it. You pay a monthly amount in interest and repayment if you use the credit. This is the monthly installment amount. A revolving credit has no fixed term. After you have repaid an amount, you can withdraw it again. That way you always have extra money at your disposal. The amount to be borrowed is usually from 2500 euros, often up to a maximum of 75000 euros, this can vary per lender.
Interest is calculated on the amount of the loan. The interest is usually variable and can therefore change during the term.
The term is often not fixed, this is because you can repay without penalty and you can withdraw the repaid amounts. The interest rate is variable. A revolving credit is also called a flexible loan. The end date is therefore not fixed and you can therefore withdraw money and repay it continuously.
Relaying and record again
E can always pay off without penalty in between. And you can record everything you pay off! But you only have to pay off if you actually use the credit. That way you can use the loan more often. You agree in advance on an amount that you can borrow. As long as you don’t borrow anything from it, it won’t cost you anything. And you therefore only pay interest and repayment on the loan amount.
Arrange a revolving credit today and give yourself extra financial room in advance when it suits you! You do not need to do anything extra at that time and you can immediately dispose of your money.