It’s the end of the month, you’re almost out of money (sounds familiar?) and suddenly your car stops driving. But you need a car to get to your work. But the problem is that you might not have enough money available in such a short time to buy a new car. So there is only one way out for you to pay a new car: a money loan.
But how do you know which money loan is suitable for you. Well in the Netherlands we have a lot of different sorts of money loans. And in this article I’m going to describe a few of them and I will use the dutch names for those money loans because that’s the most practical thing for you if you live in the Netherlands and English is your primary language.
Doorlopende lening, this is a money loan for incidental expenditure like a broken car. Together with your bank you agree the terms of payback. Each month you pay a standard amount of money, plus interest to relay your money loan. But you can also pay the total amount of money at the end of the duration of your loan. When the agreed duration of the loan is over you can ask for a lengthening of the duration of your loan.
In the Netherlands you also have a rentekrediet, a rentekrediet is almost the same as a doorlopende lening but you only pay interest during a part of your loan duration. You don’t pay any monthly amounts of money to the bank. After a while, that you agreed, your loan automatically becomes a doorlopende lening. This form of money loan is very useful if you don’t have money but foresee that you’ll have more money in the near future.
Hypothecair krediet, in plain English this is called a mortgage. A hypothecair krediet is usually used when you want to buy a house. A hypothecair krediet is also one of the biggest forms of money loans available in the Netherlands because of the big amounts of money. But a hypothecair krediet also has the lowest interest available! You pay your hypothecair krediet within a period that you signed with your bank, you pay monthly an amount of money of the loan and an amount of interest. Mostly you may not have more than two hypothecair krediet at once.
You also take a persoonlijke lening, a persoonlijke lening is a loan that you pay within an agreed period of time, this period of time cannot be shortened or lengthened.
Well these are the most common forms of money loans in the Netherlands, have a good thought about it before you agree to a money loan, it’s about a lot of money. And always find a bank that fits to you, so you won’t be surprised later on!