What is a personal loan?
A personal loan is a professional term for a consumer credit form where the borrowed amount is paid out in one go and then repaid by the borrower in a fixed number of installments. Each term contains a repayment component and interest on the residual debt.
When to take out a personal loan?
This is always possible. But the high interest rates make it better to take out a specific loan such as a car loan.
What do I need for a personal loan?
Loan applicants must be Belgian citizens and at least 18 years old. The applicant must also have at least one income. Your identity card, income and address will be requested when you apply for a personal loan.
Which loans are available to me?
OneTopNotch compares all types of loans offered by different banks and lenders in Belgium.
How much can I borrow?
Based on your creditworthiness, many banks and lenders can lend between € 1,250 and € 100,000. Most banks place a maximum limit and that can be 6 to 10 times your current salary or a fixed amount. The lower of the two options will be the highest possible limit for you.
How much is the interest rate?
Belgian banks and lenders typically charge around 9% interest on personal loans, but this can vary between 5% and 10%.
How do I repay an installment loan?
Installment loans come in many forms and sizes. Such as automatic payments from your account, or this is also possible with a check that can only be cashed after a certain date.
What is the difference between secured and unsecured loans?
The main difference between secured and unsecured loans is that secured loans are collateralised with assets that the creditor can use to recoup the cost of the loan if the debtor defaults.
What is an insurance on a loan?
With an insurance on your installment loan you ensure financial protection for your family should you die prematurely or become fully disabled during the term of your loan.
What is a penalty for late payment?
This is a fine that you will have to pay if you are unable to pay your monthly costs on time.
What is the processing cost?
A processing fee is a one-off payment that is requested for the application process. The amount varies between each bank and lender.
What is a penalty for early repayment?
This is a fine that you will receive if you repay the entire loan before the end of your contract. To avoid this, it is better to ask your bank what their conditions are with regard to early repayments.