You can now apply for an increase on the purchase loan.

The purchase money renewed its loan products again.

After the latest change, it is now possible to raise the loan .

In practice, this means that all customers of the Shopping Cart can choose to raise the capital of their existing loan up to EUR 10,000.

If you are already a Shopping Cart customer and need more loan , you do not need to apply for it from any other loan provider, but you can conveniently raise your existing loan.

You can apply for an Upgrade Your Loan Loan if you have handled the repayment so far, paid 6 installments or 30% of the loan capital.

 

An example of raising a loan:

• Old Unpaid Loan: EUR 4,000.
• Loan applied for: EUR 3,000.
• Amount of the new loan after the increase: EUR 7000.
• New loan repayment period max. 72 months.
• Your account will be paid 3000 euros.
• Monthly installment of the new loan is EUR 204.24.
• The total amount to be repaid is EUR 14,704.39.

Here’s how to raise a loan:

Sign up for a loan application on the Ostosraha website.

Select the loan amount of the new loan and the desired payment time.

Add the outstanding loan amount of the current loan.

Get your loan decision right away and cash in to your account in about 15 minutes.

 

 

When you sell your existing house with surplus value it is very attractive to take that amount into the financing of your new, usually larger and more expensive house. But what do you do if the sale of your existing home is not definitive, the money simply is not in yet or your house has not even been sold? Then you can apply for a bridging loan for the purchase of your new home. What exactly is such a bridging loan, which hooks and eyes are there and how can you apply for such a loan yourself?

When a bridging loan?

You use a bridging loan to bridge the time between the sale of your own home and the passing of the deed of sale. Or to be able to buy a new house when your existing home is still on sale.

By borrowing the amount of the surplus value you can take that sum into account when financing the new house. You only need a bridging loan when you go from owner-occupied home to owner-occupied home and purchase a house that is more expensive than your old house.

In which situations can a bridging loan offer a solution?

• When your home is on sale but has not yet been sold
• When your home has been sold but the transfer has not yet taken place.

Are you in one of these situations but do you want to be able to pay for your new home? Then you might be able to apply for a bridging loan. However, banks are very reluctant to provide such credit, especially if the property has not yet been sold, so it is no guarantee that you will get one.

Calculation example bridging loan

When your old house is sold on paper for a value of € 200,000 and a mortgage on the house equals € 150,000, – you have an excess value of € 50,000. If you have now bought a new house of € 300,000 and the new mortgage of € 250,000 is no problem, you can use the surplus value for the remaining part of € 50,000.

Because the payment for your old house is not yet available, you unfortunately can not immediately have the amount of the surplus value. To circumvent that, you can take out a bridging loan, so that the amount can still be included in the new mortgage and buying the new home can continue.

Conditions for a bridging loan

Banks always have a number of unique and often very strict conditions for concluding a bridging loan. This is because the risk with this credit is quite high. The way in which the maximum credit is calculated is not the same for every bank.

With every bank you always get the following important aspects of a bridging loan:

Maximum duration of the credit

With a number of banks, you can only go for a bridging loan if the house has already been sold and also only when the period with resolute conditions has already expired. A house is almost always sold under reserve, for example subject to financing. The buyer can then cancel the purchase free of charge if his mortgage application is still rejected. As a result, there is always the risk that the purchase will not take place, hence the reservation.

Other banks find it less of a problem if the house has not yet been sold. They then link a maximum term to the credit of 12 to 24 months. You then have 1 to 2 years to sell the property. Is your old home still not sold when the expiry date of the bridging loan comes closer? Please contact the bank in good time to extend the credit, as this normally will not happen automatically.

Calculate maximum bridging credit

Almost always the maximum bridging loan is calculated by the bank in the following way when the property has already been sold:

Bridging loan = Sales price – Residual debt – 3% Sales costs

If the house has not yet been sold or the period of the reservation has not yet expired, the bridging loan is calculated by most banks:

Bridging loan = (0.9 x Valuation value) – Residual debt

That means in the second case a lower credit, so you may have to bring in more money. An alternative, however, is to finance the remainder in the new mortgage. As soon as the old house has been sold, you can immediately repay that extra mortgage part.

Higher interest than usual

You also have to take into account that the interest you pay for the credit is higher than what you normally spend on a mortgage. Both fixed and variable interest rates occur. Exactly how high the interest rate varies per bank, but take into account a higher percentage than the current mortgage rate.

Note: the interest on the credit is deductible for income tax, just like your normal mortgage interest. That is only the case if the house is your main residence and not, for example, a holiday home.

Also higher monthly costs

During the bridging period you often end up with high costs. You have to continue to pay not only your old mortgage, but also the new one. In addition, the monthly amount of the bridge loan is added. Banks will therefore assess whether you are able to pay these higher monthly payments before they will consider allocating a bridging loan.

The old house has been sold – and now?

Once your house has been sold and the amount has been paid by the buyers, you immediately cancel the old mortgage, but also the bridging loan. The latter is often required by the bank and is therefore one of the conditions for the credit. You do not have to pay an installment on that repayment. If you have more surplus value and therefore make more profit on your property than previously thought, you can spend that money at your own discretion. However, it is often the most advantageous option to repay a part of your mortgage in advance because you pay less interest during the entire term.

Risks of a bridging loan

A bridging loan not only involves risks for the bank, but also, of course, for the person who takes out the loan. That is why you should keep a close eye on the following risks:

• If your home has not yet been sold, the surplus value can always be disappointing and you will stay behind on your bridging loan with a residual debt.
• At the time of the calculation, you may be able to pay the higher monthly payments, but something unexpected can happen that will cause you problems. That can cause a lot of hassle and worry if you just have 1 mortgage, let alone if you have to pay a double mortgage and also a relatively expensive bridging loan.
• If you are unable to sell the property within the term of the loan, it may happen that the credit is not extended, becomes much more expensive or that the bank requires you to adjust the asking price of the old house downwards. That will always have annoying financial consequences.
• When the interest on a bridging loan is variable, it can suddenly rise and provide even more extra costs.

Request a bridging loan

A bridging loan is generally easiest to approach the bank where you also take out the new mortgage. Not every bank offers this product and it can therefore limit you in your choice for a mortgage provider.

Because the interest on credit differs per bank, it is always a good idea to prepare yourself well. Compare the interest rates for both the mortgage and the bridging loan where you also take into account conditions such as maximum term, etc. Of course, the conditions and interest of your new mortgage weigh heavier than that of the credit, because the mortgage is like the good is much longer than the bridging loan.

Have you thought carefully about all the risks and do you think you are strong enough to be assigned a credit? Then simply contact the bank of your choice to discuss all options and costs in a conversation with the mortgage advisor. An independent mortgage advisor can of course help you with that.

Sometimes some extra money can be badly needed. Because you have to make a big purchase for example or because you want to renovate the bathroom in your home. In those cases it is useful if you have a bulging piggy bank, but unfortunately that is not always the case and you will therefore have to come up with other solutions. A loan can then offer a solution. But how do you know if you can borrow? How do you find out if you can get a loan? You will discover it in the article below!

Borrowing money, costs money

Of course you already know this, but an extra reminder can never hurt. Borrowing money, costs money. Always and often a lot too. The interest that a lender charges on the loan can be substantial so that you paid a lot more for the expense at the end of the ride than you would if you had done this with your own money. Yet you sometimes can not escape it. The car breaks down and you need a new one to be able to go to work every day. Or the washing machine breaks down and you do not have enough equity to absorb the blow itself. There are 1001 scenarios in which you suddenly need extra money and then it is nice if you have an opportunity to absorb the financial misery.

One of those options is borrowing money. Preferably with friends, family or acquaintances so that (hopefully) you do not have to deal with sky-high interest rates, but unfortunately it is not always possible to obtain the financial resources from your own network and then you are automatically dependent on an external lender. This is usually the bank, but there are also third parties that provide credit. Whether you get the loan you need depends on various factors.

Conditions when applying for a loan

On the one hand, lenders are lining up to provide you with a credit. After all, it is the way they earn money. On the other hand, not everyone can easily obtain a loan. After all, the most important condition is that you are able to repay the provided credit within the period that has been set. You will therefore have to be sufficiently creditworthy to obtain a loan from the bank or another lender. A lender therefore runs through a number of things if you want to take out a loan with them:

• Income
• Family composition
• Housing costs
• BKR quotation

Income requirement

One of the most important things that a lender will test is of course your income. You will have to earn enough to be eligible for a loan. If you do not earn enough, the whole story will soon stop. You will therefore have to present irrevocable payslips if you decide to request a loan from your bank or another lender. In doing so, it makes a substantial difference whether you have a permanent contract or a temporary employment contract (or an unemployment benefit). After all, the lender not only wants to know whether you can pay off right now, but also wants to know if there is enough certainty that you will continue to do so in the future. A permanent contract always gives a lender more security than an employment that is temporary in nature.

Family composition and housing costs

Every household has a certain income, but also certain expenses. The rent or mortgage must be paid, there are municipal taxes and you will have to take care of your food and your dribble every day. All costs that are taken by a lender on the balance sheet. Because you can earn 10,000 euros per month, but if 9,950 euros a month you fly, you are not exactly in the position to repay the contracted loan. A lender will therefore also look at your family composition and your expenses around the home. Do you, for example, have a partner that also makes money? Then this has a positive influence on the amount that you will be able to borrow from the bank or another lender. Do you have 5 children to feed every month? This will also affect the question of whether you can obtain a loan and if so, what the amount of the loan will be.

BKR quotation

Every credit that is taken out in the Netherlands is reported to the Credit Registration Office in Tiel. This happens with personal loans and revolving credit, but also with mortgages or a telephone subscription. There is nothing wrong with a registration at the BKR, provided that it is not a negative BKR quotation. If there is a negative BKR quotation, you have a comment on your name. You are not creditworthy and will therefore not be able to take out a loan with a bank or other lender. Do you have a negative BKR quotation and do you still need (fast) money? In that case, read our article about borrowing money without BKR testing !

Other important points

The above items have a (large) influence on the possibility to obtain a loan and also on the amount of the loan if a lender decides to grant you a loan. There are, however, a number of other important points that influence the question of whether you can obtain a loan.

Other loans

You may want to take out a loan while you are repaying another loan. This does not necessarily mean that you are not eligible for a new loan. However, the amount of the existing loan, the monthly repayment amount and the punctuality with which you repay the old loan will be examined. If there is an odd doubt for a lender that you will pay back the new loan properly, the lender will not provide you with a new loan. Do you appear to be creditworthy and is your current loan not too high? Then you have a good chance to still be able to take out a new loan.

Wages and / or other debts

Is part of your wages seized by creditors? Then you can actually immediately say a day against a loan. It is a sign on the wall for a lender that your payment morality is not exactly high. The same applies to any debts that you have to companies, authorities, collection agencies and / or bailiffs. All reasons for a lender to doubt your creditworthiness and therefore a valid reason to reject your application for a loan.

Separation

If you are divorced, it is not possible to apply for a loan, provided that your future ex-partner wishes to sign the loan agreement. A small chance. After all, you are not in divorce for nothing. In order to be eligible for a loan it is important that you can prove that the divorce has been officially declared by the court, you are registered in the civil registry and that the joint assets, the home and any loans are divided.

Your age

Clear rules are not there when it comes to your age, but if you are too young it will be difficult to get a loan and the same applies if you are already relatively old. A lender ultimately has only one goal with providing a loan: the loan amount + the interest to be paid back. If you are in the last days of your earthly existence, a lender may refuse the requested loan, simply because the lender has no (or very little) confidence that you will complete your time on earth until you have paid the borrowed amount including the associated interest. have repaid. Crux maybe, but something to be reckoned with when you decide to apply for a loan if you are already at age.

How do I know if I can get a loan?

Now that you know what a lender looks for when applying for a loan, the key question remains: “how do I know if I can get a loan?” . With a little common sense, you can check for yourself how creditworthy you are. Do you have debts or a negative BKR quotation? Then you can probably count yourself on 10 fingers that applying for a loan is actually a waste of your time. However, do you have a permanent contract, do you pay your fixed costs every month and is the only BKR quotation that you have your mobile phone subscription? Then the question is not whether you can get a loan, but how high the loan will be.

As said, lenders are happy to provide loans because they simply have their earnings model there. The more credits they provide, the more money they will generate. If you are sufficiently creditworthy, then a lender will simply work with you. It is then only a matter of figuring out how high the credit will be and which lender uses the most favorable conditions. To help you with that, we have the following handy comparator for you, so you can immediately see which lender is most interesting for your loan!

 

Do you need money? For example, because your laptop broke and you need a new one? Or do you want to buy a new car, but do not you have the money to pay for it? Can not you borrow the money you need from family or friends, or would you rather not? Then a short-term loan can be a solution. So you can now buy that new laptop or car, and you do not have to wait until you have saved the amount you need. Do you want to know what a short-term loan exactly means, in which forms you can find it and how to request it? Then read on quickly.

 

What is a short-term loan?

A short-term loan is a loan that, as the name already gives away, is for a short time. The time varies from a few days to about a year. The nice thing about a short-term loan is that you can use it to make a purchase, for which you do not have the money yet. So you can finance a purchase like a new laptop, washing machine or a couch with a short-term loan. Even if you want to take a holiday or, for example, make a nice trip, a short-term loan can be a solution.

Types of short-term loans

The personal loan is probably the best known form of a (short-term) loan, but there are many more forms, such as a flash loan or a revolving credit. Below we have listed the various options for a short-term loan for you.

Flash loan

A flash loan or mini loan is the fastest way to get extra money. Especially if you have previously had a loan from a lender and paid it off on time, you can literally get money within 10 minutes with a flash loan. The flash loan is the solution for those who need money fast. Borrowing is often possible up to an amount of 1500 euros. It is a very short-term loan, since the maximum number of days you borrow is usually 30 days. Once you have paid back the loan properly, you can immediately take out a short-term loan again. You can close a flash loan with Ferratum and Saldodipje.

Buy on installment

Buying on installment is also a short-term loan. Suppose you want (or have to) buy a new car, but do not have the money right now. Then you could opt for a purchase on payment, as you can also do with online purchases. This is a very easy way to buy something that you currently do not have the money for. You buy something now, get it immediately (or quickly), and pay the product back in a few months (or even years). Buying on installment is a short-term loan that you can not borrow money from, but can finance a purchase.

Stand red

When you are red on your payment account, this is also a short-term loan. After all, you have access to money that you do not have (yet) at all. At most banks you can be red for a maximum of a number of months. You can often adjust the preferences for the red online, or otherwise arrange by telephone with an employee of the bank. So you can set a limit and you immediately know how long you can stand red. Standing red is an expensive form of borrowing money, but it is easy to realize. When you compare a number of banks with each other, you will see that the costs for red are not the same everywhere. If you are often red, or if you plan to do that often, it is useful to look at a bank where the costs are not too high, so you do not have to pay unnecessarily a lot for the red .

Credit card

A credit card works in a way like red. You buy something you can not yet pay and then resolve it when you can. Actually, the red is on a separate account. With a credit card you can not only finance purchases, but also withdraw money to, for example, pay bills, which is nice when you have at the end of the month just a little too little money. The disadvantage of a credit card is that here too interest is quite high and you have to pay for membership.

Borrow money with collateral

It is possible to borrow money by using a collateral. You can take out a loan from the bank, for example by using your house (mortgage loan), any securities (shares or bonds) or your life insurance as collateral. Do you take out a mortgage loan and do you not meet your payment obligations? Then the bank can sell your house to get the borrowed amount back. Borrowing with collateral can also be of value with, for example, jewelry, a painting or other artwork, gold coins or other items. The city bank or a pawnshop determines the value of the collateral that you bring. If that value proves to be sufficient, you can immediately receive a loan. After the loan has been paid off you can pick up the collateral again. Here too, the collateral can be used to recover the borrowed amount if you fail to meet your obligations.

Revolving credit

A revolving credit may sound like it is a loan for several years. That may be the case, but it could just as well be a short-term loan. You are allocated a maximum credit, where you can decide when you pick up something and whether that is the whole amount or only a part of it. If you do not accept anything, you do not pay interest. You only have to pay interest on the credit that you have actually used. The interest rate for a revolving credit differs per bank or lender.

Personal loan

A personal loan can also be a short-term loan. You agree with the bank or lender beforehand how long you want to borrow and for what amount. Personal loans are often taken out for the purchase of, for example, a new car, where the term is usually no longer than 5 years. But you can also take out a personal loan for a much shorter period.

Compare loans

When you think about taking out a short-term loan, it is important that you first determine which loan suits you best. The choice of loan depends, among other things, on how much you want to borrow, how fast you want that amount, and how long you want to spend on the repayment. When you know which loan is best for your situation, you can compare this loan with various providers.

Borrowing money, costs money

“Borrowing money costs money” is a sentence that you undoubtedly know from various advertisements. The amount of money that a loan costs depends partly on the interest you have to pay on the borrowed amount. In addition, there are almost always administrative costs, which in some cases can be quite high, so you end up paying a lot of money for a loan. Avoiding a loan is actually the best advice, since it always costs more than you actually borrow. If that really is not possible, then look especially at your situation and what is most convenient for you, so that you do not get into trouble afterwards.

Interest

The interest you pay on the short-term account depends on many different factors. Not only does it depend on what kind of loan you take out, but also with whom you do that. The duration also counts when it comes to the level of interest. That is why, when you have made a decision about what kind of short-term loan suits you best, it is useful to look at the level of interest at various lenders. You can easily do this via various comparison sites.

Close short-term loan

Short-term loans exist in many different forms. The most important thing is that you choose a loan that suits you and your situation. For example, if you only need a few hundred euros, a flash loan or red can be a handy choice. If the amount you need is higher than the limit on red or the maximum that you can borrow with a flash loan, you can take out a personal loan. Compare the providers and their conditions well, so you do not pay too much interest, and know where you stand. As you have read above, you can also buy a product on installment. This can be useful when you need the money to finance a certain product. You then repay the product in installments, which means that you can repay it just like with a loan. Always check the conditions of the provider where you buy the product, so you will not be faced with surprises.

Because in recent years it has become increasingly difficult to take out a loan such as a mortgage or a business loan, more and more people opt for a private loan with family or friends. By this way of financing they can still realize their dream and often also on more favorable conditions than with a bank or other lender. But what exactly is a private loan and how do you ensure that both the lender and the recipient have sufficient security? In this article we tell you everything you need to know about the private loan, what the pros and cons of this loan form are and what you should pay attention to.

What is a private loan?

A private loan is a loan in which no bank or other lender is involved but where both people already know each other. It concerns, for example, a loan between family members, such as parents and their children, or a loan that you take out with a friend.

Some examples of private loans are:

• Children who borrow an amount from their parents to buy a house or to be able to carry out a renovation.
• Parents who take out a student loan with their children under favorable conditions
• Borrow money from a family member so that you can start your own business.

The benefits of a private loan

You can take out a private loan for private or business purposes. In addition, a private loan has many advantages compared to borrowing from a bank.

First, private loans are not registered with the Credit Registration Bureau (BKR). As a result, you can also borrow money when a bank or other lender that would normally refuse. But even if you do not want to have such a registration because it can be disadvantageous for a mortgage application, for example, a private loan is a good option.

Another advantage is that you can draw up better conditions in consultation with the lender than you would get at a bank. For example, a longer period to repay the loan than normal. Note: the interest on the loan must be market conform. (We will go into this in more detail.)

Finally, it’s nice to have a good story for a business loan. For example, you do not need to draw up a business plan. You especially need someone in your area who has confidence in your abilities and what you plan to put on.

Disadvantages of private borrowing

Naturally there are also disadvantages to private borrowing. You mainly get to deal with this when it goes wrong and you can not pay back the loan (on time). Although it is often a possibility to negotiate with each other again, it is often accompanied by disappointment, shame and sometimes even a fight. That is especially the case when everything really goes wrong and you really can not pay back the loan. That kind of misery with friends and family is of course not waiting for you and is not what you think about when you take out the loan. But it is wise to take into account in advance that a financial damper is possible.

What do you have to pay attention to?

Even if loans that have been taken out privately are not reported to the BKR, you have to comply with all kinds of legal provisions, especially if you want to benefit from certain tax benefits. But there are also a number of personal considerations that you have to make before you take out a private loan. So where do you have to pay attention when taking out a private loan?

Use an interest rate that is market conform

One of the most important things to watch out for is that you agree (and record) an interest rate that is market conform. Many people have the idea that you can borrow extra cheaply from a family member, but that is not true. Do you want to keep interest rates as low as possible? Then look at the lowest interest rate you can find at a bank when the loan starts and take that interest as a percentage that you use yourself.

If you do not do that, then the Tax Authorities can be of the opinion that it is not a loan but a donation. This means that you then have to pay gift tax on the entire loan amount. You are always more expensive than if you had just chosen a market-based rate.

Note: if the loan is used for buying or renovating your main home, the interest is deductible for the income tax. But for that the interest must also not be too high. So do not agree on any interest that is higher than 6% because then the Tax Authorities can decide not to deduct the mortgage interest as a deductible item and you will miss out on a lot of money.

Prepare a loan agreement

It is very important to record the private loan on paper. Not only for yourself, but also, for example, proof for the tax authorities when they have doubts about your income tax return. This must be in such a loan agreement to be legally valid:

• Name, address and citizen service number of both the lender and the person who lends the money.
• The total loan amount
• The interest percentage against which is borrowed
• How the loan plus interest will be repaid
• What is the term of the loan
• The date on which the loan starts
• The signature of both parties
• What will happen if the loan is not repaid or not paid in time?

You can also download an example agreement from the internet and adjust it to your own situation. You can find these example agreements on the ABN-AMRO website, for example.

Do you find it important to make it all more official? Then you can of course also go to a notary. Then you are sure that you have made the right choices and you have a legally-sound contract that takes into account all possible scenarios.

Do not lend money for purely emotional reasons

Finally, the emotional factor of a private loan often plays a major role. Parents who give their children a nice home are quickly inclined to provide a private loan in order to be able to help directly. And when a friend asks you for a loan to realize his dream of owning a business, it is more difficult to say no than to someone you do not know at all. However, it is not just about being the best person for the other person, it is also important not to lose sight of the purely financial part.

The most important question to ask yourself is: can the other person actually repay the money? As a private person you simply can not go to the BKR and therefore have to assess yourself what the indebtedness of your friend or family member is. When it comes to a business loan, you should therefore not only have confidence in the other person (that is because we quickly have a friend or family member) but also in the plans that are on the table. Finally, it is always best if the lender himself comes up with the idea of ​​a private loan, because if someone approaches you, it is often the sign that the person can not go anywhere else. Finally, you do not have to lend money that you need very much yourself, because then you also run into problems if the private loan is not repaid.

You may also find these related articles interesting:

• How can you borrow private money without BKR testing?
• What is a convertible loan?
• What is a mini loan (without BKR) and how can you apply for it?
• 9 tips if you want to borrow money for a car
• What is a personal loan?
• Can I borrow? How do you know if you can get a loan?
• What is a short-term loan and how do you apply for it?

Can you use some extra money? For example, because you would like to buy a new car, or because you would love to pop the kitchen? Then a personal loan can be a solution. But what is a personal loan? How does it work? And what are the advantages and disadvantages of such a loan? In this article we tell you everything you need to know about a personal loan.

A personal loan, what exactly is that?

A personal loan is a way to borrow a certain amount at once. With this amount you can finance the goal that you have in mind, for example a new interior for your home, or that caravan you have been dreaming about for so long. With a personal loan you can borrow an amount that (when you meet requirements) is deposited directly into your account.

A personal loan is the most standard form of borrowing, unlike other variants such as a short-term loan , a private loan , a mortgage or a mini loan .

How does that work?

You determine in advance how much money you are going to borrow and how long the term of the loan is. The term determines how long the loan runs, and therefore how much time you have exactly to repay the entire amount. The redemption is done by repaying a monthly amount. Because the interest on a personal loan is already fixed in advance, you know exactly what the final amount is that you have to pay back, and how that amount will look monthly. That certainty is nice, because you know exactly where you stand and can not come up with surprises afterwards.

When do you opt for a personal loan?

Taking out a personal loan is useful if you know in advance how much money you need because you borrow this amount at once. So if you need a new car for example, or have to finance a project, and know in advance what the costs will be, you can take out a personal loan for it. If you do not know exactly how much money you need, or if that amount might still run out, then it would be wiser to opt for a revolving credit.

For which situations?

You can take out a personal loan for which you want. Often such a loan is taken out to finance something that currently has no money for. By taking out a personal loan you can now buy or finance something, and then repay it in installments. For example, a personal loan is taken out for:

• Buying a new car
• Placing a new kitchen
• The realization of a dormer

If you use the money from the personal loan to improve your owner-occupied home, for example for a renovation, this interest is deductible for the income tax. With an ongoing loan, you do not have this benefit, which is the reason for many people to choose a personal loan when they intend to grow.

What are the benefits of a personal loan?

When you think about taking out a personal loan, or are comparing different types of loans, it is important that you know the advantages and disadvantages of a particular loan. That is why we have listed below the advantages of a personal loan for you:

• Fixed amount per month. With a personal loan you borrow a one-time amount. You then deduct this amount in fixed installments. The amount that you lose monthly (part repayment + part interest) is fixed in advance, so you know exactly where you stand.
• Fixed term. Just as you know what amount you will have to pay monthly, you also know in advance how long you will have to do that. This ensures that you already know in advance when you will be ready to pay off, which prevents you from being confronted with surprises.
• Deductible interest. Do you use the personal loan for improvement or renovation of your owner-occupied home? Then the interest is deductible for the tax.
• Direct money. With a personal loan you have direct access to the borrowed amount. This money is transferred to your account at once, so you can immediately make the purchase you want, or finance the project for which you borrowed the amount.

Disadvantages of a personal loan

Although a personal loan mainly has advantages, there are of course also disadvantages. Below we have listed a number for you:

• No possibility of re-recording. You can not re-enter the amounts you have repaid. This ensures that a personal loan is less flexible than, for example, a revolving credit.
• Do not repay in the interim. There are exceptions, but usually it is not possible to pay off a personal loan during the penalty period. This has everything to do with the interest that the lenders miss when you pay the amount more quickly than agreed. Because they miss out on that money, you pay a fine. However, there are also lenders who pay off early and are free of penalty. On many comparison sites you can simply indicate this preference in the form of a filter.
• Extra borrowing is not possible. With a personal loan, the amount you want to borrow is fixed in advance. Should it be that you find out during a renovation that you actually need more money, then it is not possible to just borrow some extra money.

Maturity personal loan

When you take out a personal loan you agree in advance how long the term will be. Often you can opt for a period of about 2 to 10 years. Some lenders even offer you the opportunity to make 15 repayments. Now it may seem interesting to choose for as long a term as possible, because the amount that you then have to pay off monthly is lower. However, this is certainly not always wise. View well what you need the amount for and how long that product lasts. Are you going to use the money from the loan, for example, to purchase a second-hand car? Take a good look at how long you can still make use of that car. It would be a shame if your loan has a term of 10 years, while the car will no longer be able to drive for more than five years. In other words: always adjust the term of your loan to the lifetime of that which you want to finance with it.

Compare personal loans

If you would like to take out a personal loan, it is wise to compare the providers (lenders) and their conditions with each other. Look not only at the amounts to be borrowed, the interest and the term of a personal loan, but also at the conditions. Is it possible, for example, to pay off a loan in the interim? And if so, do you have to pay a fine or not? And what about when you miss a payment term? What are the consequences? Read it carefully so that you know exactly what is expected of you when you take out a personal loan from a particular lender and what you can expect back from it.

Request a personal loan or not?

Before you apply for a personal loan, it is important that you first carefully compare all the advantages and disadvantages. Is it, for example, that you yourself have savings? Then it is wiser to use this money to finance your purchase or project than to take out a personal loan. You pay interest on a personal loan, so you always pay more than you actually received. And that’s a shame. So if you are able to finance a purchase or project yourself (partially), then you are well advised to do so. Even if the purchase actually still can wait, and when you are able to save the amount yourself within a certain time, that is more sensible than taking out a loan to buy it now.

A personal loan

A personal loan can be the solution when you have to finance (or want to) finance a purchase or project that you currently do not have the money for. By depositing the loan amount into your account at once, you can immediately make the purchase from which you have borrowed the amount, and then pay it back in fixed installments. The term and the monthly repayment amount are already fixed in advance, which makes it clear and prevents surprises. Do you doubt what the best choice in terms of loan is for you? Be advised especially by a good lender. They will always provide you with a transparent advice, so that you can make the best choice for your situation.

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Deciding to consolidate one’s debts is often a decision that is not easy to make and requires good thinking. This alternative proves to be a solution of last resort to be able to get out of overindebtedness. We offer you effective solutions to avoid falling into certain traps of this type of banking operation.

 

First solution: extend the repayment period

Negotiating the repayment term in a more conciliatory way could already help you a lot. It is advisable to turn to the creditors and expose them to your situation, be it the bank, the suppliers or even the administration. You are invited to submit a proposal for a deadline, which may be suitable for both parties. To prove that the decision is all thoughtful, it is best to write it down.

To convince more, it is important to provide a correct forecast budget, consistent with your income, also think to keep a reasonable ratio of debt.

Turn to the bank to negotiate the maturity of the loan

The result is not always so positive, but as the saying goes, “who tries nothing has nothing”. In the case where you own a property, it is essential to check if a modularity clause has been put in place. If this is the case, the best solution would be to suspend the loan for a period of up to one year, or to reduce the maturity of the loan.

Consumer loans

With regard to consumer loans, when monthly payments become difficult to pay, it is better to try to renegotiate the loan concerned . Such an alternative will have less impact than a restructuring of credits . The financial institution will prefer to turn to flexibility because it will not take the risk of facing an impossibility of settlement of the debts of the borrower.

 

Advance a proposal of spreading by meeting the organisms

Rigidity in its operation is one of the characteristics of French administrations and procedures often constitute an obstacle. However, this does not prevent them from being more understanding when it comes to a taxpayer with a late payment. The tax administration most often grants an estate tax, housing tax or income tax.

Thus, you can go to the tax center in your area and advance a proposal spread over a few months and it must be done in writing. The answer you will receive will also be in writing. What attitude should you adopt in the process? Clearly state your situation and make a point of honor on your will to want to settle your debts.

 

 

As its name suggests, the Zero Rate Eco-Loan is an interest-free credit (these are paid by the State) which allows you to carry out work to promote energy savings of your home.

To qualify, you must own and occupy your home as a principal residence or own a dwelling occupied as a principal residence by a tenant. If this is your case, and you want to buy a home in the old and consider work to improve the thermal performance of your home, you can enjoy a Eco-Ready Zero Rate. The duration of this loan is between 3 and 15 years.

You should also know that:

• Eco-Zero Rate Loan is only for dwellings completed before 1 January 1990.
• Its attribution is not subject to conditions of resources.
• The same dwelling can not benefit from more than one Eco-Ready Zero Rate.
• The work must be done by a professional within 2 years after the date of issuance of the loan offer.

The three categories of work financed by the Zero Rate Eco-Loan are:

1. Work related to insulation, heating or hot water production

For these works, the maximum amounts of the Eco-Prêt à Zero Rate are 20 000 € for 2 works and 30 000 € for 3 or more works.

This category of works must imperatively correspond to the combination of a bouquet of at least 2 types of work appearing in the list of the 6 following works:

• Insulation
  – Thermal insulation of roofs,
  – Thermal insulation of the walls facing the outside,
  – Thermal insulation of glazed walls and doors leading to the outside,

• Heating
  – Installation, regulation or replacement of heating systems, where appropriate combined with economical and efficient ventilation systems or – production of domestic hot water,
  – Installation of heating equipment using a renewable energy source.

• Hot water
  – Installation of hot water production equipment using a renewable energy source.

Good to know: The respect of the technical characteristics of the works must be attested by the companies that carry them out. Induced and indissociable work related to energy saving works can also be financed by the loan.

2. Work to improve overall energy performance

For this work, the Eco-Loan at Zero Rate is capped at € 30,000 maximum.

The work must make it possible to limit, below a certain threshold, the energy consumption of your home for heating, hot water, lighting and auxiliaries. “We advise you to carry out a thermal study to define the most suitable work to be done to reach this threshold.

Good to know: Only dwellings completed between 01/01/1948 and 01/01/1990 are included in this category.

3. Rehabilitation works of the non-collective sewerage system

For this work, the maximum amount of the Zero Rate Eco-Loan is € 10,000.

This work concerns the rehabilitation of the sanitation systems of individual dwellings, using devices that consume no energy.
Since the 1992 Water Act, some of whose provisions were strengthened by the Water and Aquatic Environments Act of December 2006, the owners of a dwelling that is not connected to the public sewage collection system must equip a non-collective sanitation installation (septic tank and wastewater treatment), in good working order.

The work must be done by a professional

Apply for Zero Rate Eco-Loan

Zero Rate Eco-Loan is a government-assisted regulated loan and you need to take a number of steps to qualify for it.

• In accordance with the Construction and Housing Code, you must first complete a “quote form” in which you certify:
  – The date of completion of your home,
  – His occupation in principal residence by yourself or your tenant.

And, of course, you must specify the amount of the loan you want.
The companies you are applying for must, for their part, commit to the eligibility of your work for the Eco-Prêt à Zero Rate and certify the quality of the materials used.

• This document must be accompanied by the specifications of the descriptive and estimated works, if necessary of the expenses of project management (study thermal, architect, office of study …) and the possible costs of insurance, and all the necessary personal documents a loan application (including the last tax notice).

• At the end of the work, and at the latest within 2 years after the date of issuance of the loan offer, you must send the “invoice form” duly completed and accompanied by the corresponding invoices.

To complete your reading:

• The details of the eco-loan at zero rate by the Public Service
• Zero-rate eco-loan (PTZ) facilitates the energy renovation of homes

 

 

The legislation applying to loan insurance has been in the “common sense” for a few years now. In favor of the consumer, this regulation aims more a greater opening to competition on the market of insurance of loan still strongly dominated by the banking institutions and their insurance contract group.

 Possible since the entry into force of the Lagarde law, on 1 September 2011, the credit insurance delegation is still faced with the discretionary power of the banks, which can refuse it to a customer when they consider that the guarantees outsourced contract are not equivalent to the original group contract.

The Financial Sector Advisory Committee (FSAC) issued an opinion on January 13, 2015 in order to provide leads and to submit the concept of equivalence of guarantees to clear regulations.

Equivalence loan insurance: a persistent problem

If with the Lagarde law, the borrower can resort to the delegation of insurance to guarantee his credit, according to the article L312-9 of the Code of the consumption, the lending organization can, him, refuse the individual insurance contract presented by his client if the level of guarantee is not equivalent to that of the group contract he has proposed when issuing the loan offer. However, no law clarifies this concept of equivalence of guarantees and its assessment, which allows the banks to maneuver very comfortably and thus gives them the means to refuse without a lot of difficulty a delegated contract whereas is almost identical to the group contract, simply by pressing a detail.

This problem has not been solved by the Hamon law. Indeed, the 2014 Consumer Law merely allowed the borrower to cancel his loan insurance contract during the first year of subscription so that he could replace it with the one he chose. While this right provides the insured with a means of finding a better offer from an insurer outside the bank, it is, however, opposed by the bank’s freedom to judge for itself whether the new contract meets the equivalence of guarantees. .

The CCSF was therefore tasked by the Minister of Finance to study the issue and issue proposals to make the comparator of loan insurance more objective.

Comparison criteria

Regarding the basic guarantees of credit insurance (death and disability), the CCSF has drawn up a list that includes 18 possible comparison criteria among which the bank will have to select the 11 of its choice then make them public. Thus, the borrower will know exactly what criteria the notion of equivalence of collateral covers and the bank will not be able to refuse a contract respecting them. See the advice of the CCSF .

Since the unemployment benefit is optional, the CCSF has selected 8 criteria from which the banks will select the 4 of their choice.

Standardized form and reasoned refusal: bank bonds

Since the coming into force of the Hamon law on March 17, 2014, banks are required to issue to the borrower, from the first simulation, a standardized information sheet. This must include all the essential elements that the borrower must know about credit conditions and related insurance. The CCSF proposed that the bank’s requirements for equivalence of collateral should be added to this sheet, indicating the criteria used. For example, a new version of the standardized information sheet was published in 2015.

If the bank considers that the equivalence of guarantees is not respected by a contract presented by its client, then it can refuse its implementation by specifying in writing what is the motivation.

Entry into application

Since May 1, 2015, banks are no longer able to refuse a delegation of insurance based on the criteria they have chosen.