Borrowing money as a private individual, we prefer not to do it and yet there are situations where you cannot live without it. Your car needs to be replaced and you have decided to purchase a new one. Most people will borrow money to buy another car. Not to mention the financing of the new house.
Borrow as a private person
Before you borrow money as a private individual you will have to answer a few questions. Do you have a BKR registration? How much can I borrow? What do I want to borrow for? Do I want a fixed interest rate on my loan? When do I want to have the loan repaid? And so there are still a few questions that come up when you decide to borrow. Once you have provided the answers to these questions, you must make a decision about the type of loan. As a private individual, you have the choice of several loan forms from which you can make a choice.
Most people are familiar with the loan forms you can choose from. You have probably heard of the personal loan or the revolving credit. If you have never borrowed money then you will not know all the details of the relevant loan forms. As soon as you take out a loan, it is therefore wise to read about this in advance. After all, it’s about taking out a loan.
If you are going to take out a personal loan, you will be faced with interest that is fixed for the entire period. You pay the same installment every month and you also know exactly when the personal loan has been repaid. Interim recording and repayment is not possible.
If you want to take out a flexible loan, the revolving credit is more for you. The interest is not fixed for the revolving credit. You have a credit limit and you can always withdraw money until you reach this limit. Interim repayment is also no problem with the revolving credit. With a revolving credit you do not know in advance when the loan will be repaid in full.
If you are going to take out a loan as a private individual, you must bear in mind that you will not take out a large loan for products that do not last that long. If you are going to take out a loan for a car, it should not be the case that the car is already worn out if you are still paying off the loan.