A loan will be closed if you need extra money. The reason for closing a loan is different and can be anything.
What is a loan?
A loan is a sum of money that you can request from a lender. The lender will, under certain conditions (interest, repayment period, etc.), transfer the money to your account if you request a loan from him.
Why close a loan?
The reasons for closing a loan vary per person and per situation. One of the most common loans is the mortgage that many people have on their home. Without a mortgage, almost no one can pay a home. It is also often borrowed to finance a car. Other reasons to borrow may be that you spend more money in one month than you receive, which means that you are “red” on your payment account. The amount you are red is then a kind of loan and you pay interest on this amount.
Terms of loan
A loan will always be provided under certain conditions. Interest will almost always be calculated and a repayment period usually applies.
Interest is expressed in a percentage (%) and may apply, for example, per month or per year. Interest is a guarantee for the lender to see his money back. There are always people to calculate their loan not refund and interest covers a lender that risk. Interest also ensures that lenders can make a profit on the provision of loans. They will of course not do this for free.
Loan repayment term
The repayment term of a loan is the term in which the loan must be repaid. Small loans, such as minilands, often have a short (re) repayment term, which is for example a few weeks. It is therefore wise to think carefully whether you can repay these loans on time. Larger loans, such as personal loans or mortgages , will have a (much) longer repayment term that will be several years to decades.
Types of loans
There are many different types of loans. We have just spoken about the mortgage that you close for your home, but there are of course many more variants.
The personal loan that has just been discussed is a commonly used loan. In the case of a personal loan, you have a fixed term of repayment in advance and a fixed interest rate applies.
Through a loan simulation you can clearly calculate what the cost of your loan will be (administrative costs are not included). We also know the ongoing credit.
An ongoing credit has the advantage that you can add extra credit when you want to. There is a variable interest rate, which means that the interest rate will sometimes be lower and sometimes higher than with a personal loan.
We also know the minilening , which is a small loan of several hundred euros, which must be repaid quickly. A minilening is therefore especially useful if you are slightly short of the end of the month.
In addition to the mentioned loan types, you can also buy on installment or hire a loan as a loan. The 50/50 deal that you can pay for a car is also a kind of loan. In short, there are many different types of loans, which means that your situation usually has a good ‘fit’.
Loan with BKR
If you have a negative BKR registration, it will be harder to get credit. Many lenders will refuse you. This is very difficult, especially if you only have a negative BKR due to, for example, unpaid accounts during a divorce, at which time you did not know who of the spouses had to pay the bill. If you have a negative BKR, there are still possible loans to conclude as a mini loan. Otherwise, in the case of an incorrect BKR registration, you can approach the BKR to cancel the negative BKR registration.
It sounds weird, but there is also a possibility to get a free loan .
Here you have to think about borrowing a sum of money from family or friends. Perhaps this is only the case for small amounts of money, but then you do not have to knock on an online lender or at a bank and provide all sorts of information, also a positive or negative BKR listing is not at all important. Furthermore, it is well taken into account that you only have to repay the borrowed money, the statutory mandatory interest that must normally be paid keeps you beautiful in your own pocket.