It is logical that you can borrow money as a company. For example, to raise start-up capital to start your business.
But you can also borrow money as a private individual. There are various options for this. The best known is of course the mortgage. But there are also other ways to borrow money. Credit Savers gives you all the information you need to borrow money as a private individual.
The different loan forms
There are different ways to borrow money. The loan form often depends on the loan target. It is therefore good to first determine why you want to borrow money as a private individual. Do you want to buy a house? Then a mortgage loan, with your house as collateral, is the best and most economical choice. Are you going to study? Then you can often take out a loan with DUO on favorable terms. Do you want to buy a car? Then you can also opt for a financial lease and with certain products, rent-purchase is also possible. In addition, it can be advantageous to borrow money from a private individual such as family or friends. Red on your checking account or a credit at a web store or mail order company are also forms of borrowing. In addition, it is possible to borrow money through a revolving credit, personal loan or microcredit.
The purpose of your loan mainly has consequences for the choice of loan form. This usually involves a personal loan or a revolving credit.
What do you want to do with the extra money from your loan?
Possible loan goals are:
- Cosmetic procedure that is not (fully) reimbursed by your health insurance policy
- A renovation of your home such as solar panels, extension, dormer window, bathroom or kitchen
- Paying for your study if a loan from DUO is not sufficient
- To absorb a financial setback
- To bridge the time between salaries
- For the purchase of a car, caravan, boa, computer or other durable items
- For a vacation or trip
- To pay off an expensive loan (the so-called refinancing)
- Extra cash
Know in advance where you stand with a personal loan
Do you know in advance how much money you need? For example, because you want to buy a car or computer, book a holiday or have already requested a quote for a kitchen or bathroom? Then a personal loan is a good choice. You then borrow the amount you need at a fixed interest rate and you pay everything back within a predetermined term. With the personal loan you know exactly where you stand. You can also calculate exactly what the loan will cost you. If you use a personal loan to borrow money as a private individual for a renovation, you can deduct the interest in the 6 months after taking out the loan. This gives you a tax advantage if you opt for a personal loan during a renovation. Co-financing a renovation in your mortgage can also be possible. For this, it is best to contact your mortgage provider.
The advantages and disadvantages of a personal loan in a row:
- You know where you stand
- You cannot borrow more if the amount is not sufficient
- Fixed interest rate
- Tax benefits when used for a renovation
- You repay a fixed amount each month
The flexibility of a revolving credi
Another possibility is the revolving credit. With this loan form you have a lot of flexibility which makes it very suitable if you do not know exactly how much you need in advance. This can be an extensive renovation where you do not yet know exactly what the total costs are but you do have to pay invoices. For a journey that you do not yet know exactly where you are going and how long you will stay away from. Or maybe you want to borrow for your studies and you need some extra money for a longer period. Then a revolving credit offers a good solution. With this loan form you can determine how much you want to withdraw and when, of course with a predetermined maximum. You repay monthly what you actually borrowed and you also pay interest on it. And you can record what you have repaid. This form of borrowing money as a private individual is therefore very flexible and ideal if you sometimes need more and sometimes less. You must keep in mind that the interest is variable. This means that during the term, the interest can therefore rise. You do not know in advance what the costs will be.
The advantages and disadvantages of a revolving credit:
- It is flexible so you decide what to record when
- You can withdraw the repaid amount
- You only pay for what you actually borrow
- Repaying takes longer if you keep withdrawing money
- Variable interest rate which makes the loan more expensive
Quickly borrow small amounts with a mini loan
If you want to borrow a small amount and especially want to have money quickly, you can also opt for a mini loan or flash credit. With this loan you have money in your account within 24 hours. This concerns small amounts, between 100 and 1500 euros. There is no testing at the BKR but you do need a personal guarantor. Don’t you have that? Then you can opt for an external guarantor, but there are costs involved. This loan form is ideal when you need money quickly and can pay it back quickly. The term of these loans is very short. Ideal if, for example, you want to bridge the time between two salaries.
Do you want to borrow money immediately? First request quotes from different providers to compare. This way you can borrow money as a private individual in the most advantageous way. Read well about the different options.
The advantages and disadvantages of a flash loan are:
- Fast money in your account
- No BKR assessment
- Higher costs with external guarantor
- Short duration
- High interest