January 31, 2019 Michael Oren 0Comment

 

What is a personal loan

Come here, thanks to this blog, what a personal loan is. Because a personal loan is a consumer credit whereby the lender deposits the borrowed money directly into your bank account. Every month you pay a fixed amount of money in which the interest and repayment is processed. Characteristic of the personal loan is that the interest rate and term are fixed. You know in advance exactly when you have repaid the loan, but you can also calculate in precision how much the loan will cost you in total. Unlike with the revolving credit, with this loan form you can not re-enter the money you redeemed. Personal loans are very suitable to act as a car loan .

 

What to use a personal loan for?

Financing a new car
The purchase of a kitchen
Realizing a renovation to your home or garden
Buying a camper or caravan
Vacation or distant journey
Or another specific goal

Benefits personal loan

✓ You pay the same amount of repayment monthly
The interest is always fixed in advance
You know when the loan has been repaid
You will be credited the amount of money to your bank account in one go

Tax

Tax deduct some costs

Do you use the personal loan for the improvement of your own home or for a renovation? Then you can deduct certain costs from the income tax. Do you always want to have some money at hand? Then the PL is nothing for you. You would better apply for a revolving credit . You use a personal loan once for larger expenses. Note: You can not redeem any additional penalty at every provider.

Disadvantages personal loan

Borrowing money for an occasional release such as a new dishwasher, washing machine or car can be a godsend. Especially if you do not have enough savings or just have a little less to spend. The perfect loan for this type of expenditure is the personal loan. This type of loan has more advantages than disadvantages. Perhaps the only drawback is that borrowing costs money. But of course that applies to all types of loans.

Personal loan actually only has benefits

The personal loan is one of the most popular loan forms in the Netherlands. You lend a sum of money and you loose a fixed part of it monthly. Because the interest is fixed, you never get annoying surprises. The term is always known in advance. You take out this loan for larger purchases. Do not pay too much interest and therefore take the trouble to compare multiple providers of personal loans.

Does the personal loan have no disadvantages?

We believe that personal loans have no real disadvantages. However, you need to be aware of the fact that you can not re-record amounts once paid with this loan type. That is the case with a revolving credit. But this can also be an advantage. Because that is how you force yourself to repay the debt and so you have a stick behind the door. What can be a disadvantage is that with almost no lender you can repay the loan early. Do you do this? Then you pay a fine .

Features personal loan

What are the characteristics of the personal loan? We also call this loan ‘PL’ for short. It is one of the most requested loans in the Netherlands. We speak of a personal loan if you register the following with the lender beforehand:
The amount of money you lend
The level of interest
The amount of the monthly installments (repayment)
The term of the loan

Security

The personal loan differs from other forms of lending because the monthly payments during the term always remain the same. So you always know in advance when the loan has been repaid and it is possible to map the total costs of the loan. The monthly installments always consist of a part of repayment and interest. You must comply with the agreements that have been recorded. That means, among other things, that you can never (almost) never pay off without penalty. It is also important to have the duration of the personal loan shorter than the life of the object you finance when financing a larger expense.

This loan form in practice

You can use a personal loan to finance a new kitchen, a new car or caravan, a renovation of your home or the installation of solar panels. Suppose you borrow 15,000 euros for the purchase of a new car and you opt for a term of 48 months. Then you pay € 15,000 + interest / 48 months each month for 48 months = a XXX amount of money. The loan was repaid after 48 months. = 1140 ) 

Find the cheapest personal loan

If you are looking for a personal loan, do not just blind yourself to the interest rates! The loan conditions are in fact just as important. There are providers with whom, for example, you can pay off without penalty. Maybe these lenders are unfavorable from a comparison, but if you are going to earn more in the future and therefore be able to redeem faster, then you can ultimately be cheaper with them! And with some providers you are required to take out a term life insurance policy. Such a thing can make a loan more expensive.

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