Types of loans
Revolving credit
(doorlopend krediet)How it works: After signing a loan contract. The bank will transfer the whole or a part of borrowed money to your bank account. Every month you have to pay interest and repayment. In a standard contract this is 2% of the loaned amount. For example: For a loan of 10.000, the monthly payment is 200. There is a possibility to make other monthly payback agreements. Like 1% or 1,5% a month. Then the monthly payments will be 100 or 150. More about revolving credit
Personal loan
(persoonlijke lening)How it works: After signing a loan contract. The bank will transfer the whole amount of borrowed money to your bank account. Every month you have to pay the same amount of money consisting interest and repayment. For a personal loan there is a fixed duration. The duration of this loan is depending on the purpose of it. For a boat or a holyday home it can be up to180 months. For a new car, 60 months and for a second hand car 36 months. More about personal loan
Interest credit
(rente krediet)How it works: After signing a loan contract. The bank will transfer the whole or a part of borrowed money to your bank account. Every month you have only to pay the interest. This interestcredit looks like a revolving credit ( doorlopend krediet ). The big difference is the payback part. Because you have to pay only the interest, this type of loan has the lowest monthly amount. The monthly interest you have to pay, is only for the amount of money you have used. You don't pay for the money 'in stock'. More about interest credit
second mortgage or second home loan
(Tweede hypotheek)How it works: For signing a deed, a notarial act, you have to see a solicitor. He, or she, will make an official document. In that deed you make agreements with the bank about the interest, the monthly payment, the mortgage on the real estate and the rights the bank will have if you dot not pay the monthly costs. For the service and work the solicitor does, the client has to pay. The client has to pay also a fee to the bank for the paperwork. More about second mortgage