What to Know Before Borrowing Money
Having the necessary funds is crucial, whether it’s for a small unexpected expense or a large project. Could borrowing money be the solution?
How to Borrow Money in Belgium?
It’s clear that the future is full of surprises, pleasant or not. To cope with these unforeseen events, institutions offering loans at the best rates have emerged. Find out how to make the most of them in Belgium.
Why Borrow Money?
There are plenty of situations that require financial solutions. Perhaps your major household appliance needs urgent replacement. Or maybe health issues demand significant expense. Then there are car purchases, the dream of owning your own home, an upcoming wedding, and more.
You can request financing for the project in question from a traditional bank or an online platform. Note that a no-proof-required loan is possible if you opt for a personal loan, usually capped at €75,000.
The consumer credit is also an interesting option to address cash shortages.
What Are the Requirements?
You don’t have to be an employee to borrow money. However, you must prove you have regular income. In Belgium, you need to be 18 or older to take out an installment loan. You must also be a resident and not listed in the National Bank of Belgium’s payment incident registry.
If you meet these requirements, you can borrow money from the various specialized institutions.
How to Obtain a Loan?
Start by finding a credit institution with terms that suit you. The simplest method is to compare several offers simultaneously. Pay special attention to the borrowing rate and the annual percentage rate, which impact the total amount to be repaid.
Also, see if the institution offers a credit consolidation. It’s a simple precaution to anticipate potential difficulties in meeting your monthly payments in case of unforeseen circumstances.
If you wish to borrow for a specific purpose (real estate purchases, renovations, automobile, etc.), consider providing estimates that will support your request and improve your chances of obtaining financing.
Note that the repayment period ranges from 12 months to 240 months, depending on the specifics of the loan and the institution granting it. This data deserves your full attention as it affects the amount of your monthly payments and your budgetary forecasts over a number of years.
