Take out a loan via the internet. You should know this for sure.
August 29, 2019
Nowadays you can arrange almost everything online. Taking out a loan via the internet is no problem nowadays. There are quite a few providers that you can go to to take out a loan online.
What type of loans are there?
You can divide loans into different categories. And the following:
- A small, short-term loan
- Consumer loans
- Mortgage loans
- Purchase on installment.
The small short-term loan
This type of loan is popularly referred to as mini-loan or flash credit. This concerns small loans with a short duration. Another feature is that you can apply for this type of loan entirely online. You can usually borrow money for a 3-month period through a mini loan and the maximum loan amount is € 1,500. When taking out a loan via the internet, this is a common type of loan.
This type of loan occurs in the form of a revolving credit or a personal loan. These loans have a longer term and you can also borrow higher amounts.
With a personal loan you take out a loan for a fixed amount with a fixed term. This way you know exactly what you have to pay per month in interest and repayment.
With a revolving credit you have more flexibility. You do not have to withdraw the credit amount in its entirety. You only pay interest on the amount that you have actually withdrawn.
This is probably the most taken out loan in the Netherlands. Almost everyone who buys a house does take out a mortgage loan. This is because it usually involves large amounts of money that people cannot just cough up.
In addition to the high amount, another feature is that it involves loans with a long minimum duration.
Taking out a loan via the internet for a mortgage is not always possible. However, there are mortgage lenders arranging everything online.
Purchase on installment
People do not always see an installment purchase as a form of borrowing. Yet it is technically just a loan that you take out. For example, an installment purchase is simply registered by the BKR.
If you buy something online on installment, you could see this as taking out a loan via the internet.
Differences and characteristics of different loans
There are quite a few differences between these different types of loans. In the table below we have tried to map these differences as well as possible
Which loan best suits your situation?
This is totally dependent on your personal situation and the reason for which you want to borrow money.
If you want to buy a house, then of course you will not take out a mini loan. If, on the other hand, you need a small amount for a short period, a mini loan can offer a solution. This is because you can take out this loan quickly and you can also have the money in your account quickly.
Legal maximum interest
In the Netherlands, consumers are generally well protected. This is also the case when taking out a loan. In the Netherlands, a so-called maximum statutory interest rate applies. This is the maximum interest that a lender may charge. This maximum credit payment is the legal interest + 12%.
This maximum interest rate is therefore variable. The legal interest is currently 2 %%, so the maximum credit compensation is 14%.
However, this only applies to private loans. There is no maximum for business loans. You can see that reflected in the interest that is charged for business loans. This is usually considerably higher than what you will find with a private loan. Interest rates of 18% or higher are the rule rather than the exception.
Request free quotes for online loans
Certainly if you take out a loan for a longer period, it is advisable to ensure that you take out your loan on the best terms.
In addition to the interest that you have to pay, you will also have to pay attention to any additional costs. For example, when taking out a mortgage there is often a closing commission. This usually amounts to 1% of the mortgage amount. With a mini loan, for example, costs for a guarantee can be calculated.
These are just a few examples. The total costs of a loan can vary considerably due to these various additional costs.
After you have received various quotes, it is logical that you compare them and look for the cheapest loan. However, you can also use parties such as the Dutch credit collective. They work together with a large network of lenders, which means that they take care of part of the work.
The loan broker is a comparable party. They also work together with various lenders, so that they can immediately provide the most favorable offer from all of these parties.
You can of course also independently request quotes without obligation from the parties with whom they work. This not only costs you a lot of time, but some credit providers only work with intermediaries. So you cannot directly request a quote there yourself.
Have you already taken out a loan?
Even if you already have a loan, you could request a free quote via the parties mentioned. This way you can view without obligation what you can possibly save on your existing loan. However, it is important to take into account the possible costs of early repayment of a current loan. This can sometimes go well in the papers.
Historically low interest rate
There has been a historically low interest rate in the Netherlands for a long time. This means that you can borrow at a relatively low interest rate. However, the interest rate is constantly changing. If you take out a loan at a fixed interest rate you will not be influenced by this.
However, if you are going to take out a loan at a variable interest rate, this is something that can certainly have an impact. If interest rates fall even further, you will benefit from this. If interest rates rise, you will immediately start paying more.
My personal opinion here is that the interest rate is already so low that the chance that it will fall even further is, in my opinion, small. In addition, interest rates can rise much more than they can fall even further.
For example, mortgage interest rates of 7% or more were no exception in the past. And that means an increase of more than 5% compared to the current level. The chance that interest rates will fall by 5% is nil. This would mean that you will receive money for your loan. And I don’t see that happening personally. And the banks probably won’t either.
Even though you have compared all loans and you have found the cheapest loan. It remains a fact. Borrowing money, costs money. Applying for a loan is easy. But you have to pay it back.
Our site is purely informative. You cannot take out a loan with us.