Personal loan Netherlands – A short and sweet guide
Are you about to purchase a new car, remodel your home or go on a dream getaway? If you are, then this may be just the reason you are looking to borrow money. In fact, these are some of the most common motives for wanting to take out a personal loan in the Netherlands. A personal loan can transform your visions into reality, enabling you to get the financing you need for the things you believe will improve your life.
Along with the three purposes mentioned above – a new vehicle, home renovation or a vacation – other reasons to get a personal loan in the Netherlands include:
• Debt consolidation (check out Saldodipje’s blog on consolidation loans)
• An unexpected situation
• Moving
• Getting married
• Education
To get started, let’s go over the basics of what a personal loan is. This will provide you with a solid foundation for finding the best personal loan for you. With so many options available, it is an advantage to get a clear picture on what your options are, depending on your specific situation and the types of personal loans that different banks or lenders offer. Saldodipje offers mini and plus loans with simple, clear terms and a fully online application process.
Personal loans
A personal loan, also known as a consumer loan, describes the transaction when an individual borrows money for a specific personal expense. This type of loan differs from a business loan, which is when a business needs to borrow money. For a personal loan in the Netherlands, you can schedule a consultation with your bank or even apply fully online with a trusted lender like Saldodipje, who is part of the Multitude Group who has over 2 million satisfied customers worldwide. The Netherlands Chamber of Commerce is a good resource for government information on financing business loans for entrepreneurs
In a nutshell, a personal loan involves three basic components:
- Principal = the amount borrowed
- Interest rate = the cost of borrowing the money
- Promissory note = documentation of the loan
There are many different types of personal loans, which will also vary from country to country – so whether you are getting a personal loan in the Netherlands or somewhere else, the rates and details will vary depending on the currency and the specific requirements of each government.
For example, individuals applying for a personal loan in the Netherlands are first subject to a credit check to ensure that they will be able to pay the loan back. This standard credit check helps to protect the consumer from going into heavy debt or serious financial trouble.
Can foreigners get a personal loan in the Netherlands?
Yes, they sure can – as long as they fulfil the basic terms, such as applying with an ID-card, Passport or Dutch Resident Permit.
Any individual applying for a personal loan in the Netherlands must meet a number of general requirements. These conditions include:
• A minimum age of 18 years (21 at some banks)
• A valid passport or identity card
• Stable income
• A favourable credit score
As far as non-nationals are concerned, personal loans in the Netherlands for expats often require documentation that demonstrates their residency and proof of employment, as is the case with Saldodipje. To prove their right to reside in the Netherlands and a stable income, expats looking to borrow money might need to provide:
• A copy of a utility bill (no older than 3 months) which displays their name and address.
• A copy of a recent pay slip (no older than 3 months) which displays their name and address.
In certain situations, some banks or lenders also allow temporary residents to borrow money. In this case, they adjust the timeframe of the loan according to how long the expat is permitted to remain in the country, according to the relevant documentation.
How much you can borrow
The amount you can borrow depends on a number of factors specific to your requirements and situation. You can assess how much you want to borrow based on what you need the money for. Loan calculators are great tools to help figure out the loan amount, timeframe, and monthly repayments. Banks typically lend out amounts ranging between €2,500 to €75,000. But with Saldodipje’s online plus loan, you can borrow for amounts up to €1800. The terms are simple and clear, with all the information posted up front on Saldodipje’s user-friendly platform.
After an initial credit check, the lender will determine how much you are eligible to borrow depending on your credit score, the amount you requested to borrow and why you want to borrow it, along with your income and other personal details. Saldodipje approves loans within minutes, and you can get your money within 24 hours after approval.
When you are applying for a personal loan in the Netherlands, it is also important to consider the timeframe of the loan. The length of time you allocate to repaying the loan will determine how much you need to pay back each month. Of course, you will also have to add the cost of the loan as per the interest rate. A favourable personal loan depends a lot on the interest rate, as a high rate translates to a more expensive loan whilst a low-interest rate is much easier on your pocketbook.
Getting a low-interest rate
Getting a reasonable interest rate depends on the loans a particular lender or bank advertises as well as what your credit looks like. Considering this, it’s advisable to look for a dependable lender or bank that offers low rates as well as keeps your credit in good standing.
No matter what your credit looks like, when you agree to a personal loan in the Netherlands, you get a crystal-clear picture of the terms. Even if your credit score is not where you would like and the interest rate for a personal loan is slightly high, you can adjust the timeframe in which you would like to pay it back. There are no surprises or hidden fees since you receive a single sum of money as a loan, have a fixed interest rate, and have a predetermined expanse of time in which you need to pay it back.
Repayment – principal plus interest
With a fixed monthly repayment for personal loans in the Netherlands, you pay the same fee every month until you have repaid your entire loan amount, or principal, as well as the accumulated interest. The amount you will pay back to the lender or bank each month will be calculated according to the fixed rate and the timeframe within which you have agreed to pay the loan back.
Sometimes consumers might want to make an extra payment on their loan when they have the funds available. In some cases, lenders or banks can add charges for early repayments, when the payments are higher than the fixed amount agreed upon. To read more about how to get out of debt, read our blog, 5 ways to pay off your debt faster.
In general, the timeframe of a personal loan ranges between 6 months to 10 years, but at Saldodipje we offer personal loans with a timeframe of 30, 45 or 62 days. With a shorter term, you will be paying the fixed interest rate over a shorter expanse of time, so the total interest fee will be less than if you are paying the loan back over a longer period.
Personal loan – online application
Where there is a will, there is a way – as long as you meet the basic criteria, applying for a loan can be a rather straightforward process. For the fastest, simplest method, you can apply for a personal loan online. Usually this starts with figuring out the amount you will be able to borrow, and how much you can expect your interest rate and monthly repayments to be. As soon as you are clear about the amount you want to borrow and the timeframe within which you intend to pay it back, go ahead and make an application online with a trusted lender like Saldodipje, which states all information up-front in clear and simple terms.
Once you have completed Saldodipje’s online application process, you will receive the response in minutes. Once approved, you will receive the funds within 24 hours.
If you have any questions or are interested in finding out more, feel free to contact our customer service Help Centre.
FAQ
How old do I have to be to get a personal loan in the Netherlands?
While many lenders or banks require the individual to have already turned 21, at Saldodipje, you can qualify for a personal loan at 18 years old.
How much money can I borrow for a personal loan?
In the Netherlands, the amount generally ranges between €2,500 to €75,000, but with Saldodipje’s online plus loans, you can borrow up to €1800.
How fast can I get my money?
Once the application is approved, lenders or banks typically wire the funds within 1 to 2 business days. However, with Saldodipje’s online loans, you will get the money within 24 hours.