Applying for a loan: Guide for the beginners

Applying for a loan: Guide for the beginners

The first step is to determine which bank you want to use to apply for the private loan. Since there are a lot of banks you can lose most of this time. But view it as an exercise that can ultimately save you money. By comparing all banks you have an overview of their conditions and working method, but also of the costs that they charge. And you can certainly focus on that.  In case of the text loans this is important.

Costs of taking loan

A loan is not free, unfortunately. You have to pay costs, which are included in the monthly installments. Visit the websites of the banks and perform a loan simulation. You will see the costs per bank. Keep an eye on the APR (annual cost percentage). That is the value meter for the costs of a loan.

Once you have found a suitable bank with an acceptable APR you can submit the application. However, do not rush this step. Sometimes it’s a good idea to think about it again. Perhaps you come to different insights or there is another bank that starts a temporary promotion and has an even lower cost rate. Then you can benefit from it and apply for the private loan there. All bits help to keep it in your own pocket at the end of the month.

Application at the bank

So that may be the third step, the final application at the bank. Once they have viewed your file, you can expect an answer fairly quickly. If you get a positive answer you can get the money quickly and make the purchase that you are planning. Once the loan is running you also have no worries, the repayment goes through direct debit. Only if something goes wrong there will you be told by the bank.

If you need money, you can request a private loan from one of the many lenders in our country. That is a loan tailored to the consumer. Depending on the financial need, your adviser will put forward a specific product. After all, installment loans come in all sizes and shapes.

There are different types of private loans

To start with, there is the personal loan. That is a private loan without an object. That means that you can use that loan to finance each project. It is forbidden to take out a private loan for the financing of an illegal activity or the purchase of a pet. Those who want to take out a personal loan usually do not have to prove why they need the loan.

text loans

Car loans, renovation loans and green loans are private loans with an object. For example, if you apply for a car loan, you must be able to prove that you want to finance the purchase of a new car. You can do that, for example, by submitting a sales agreement. The same applies to a renovation loan, green loan, bicycle loan and mortgage loan.

Private loan is a flexible product

A private loan is for everyone. You have to be of age to get a loan. Lenders may not discriminate against other age groups. Moreover, a private loan is exclusively for private individuals. You can take out a private loan today through various means. However, a visit to a local office is still preferred by many Belgians. As a borrower, you can be assisted by an adviser. The adviser ensures that the loan is perfectly tailored to your wishes and needs.

Shirley Kennady