Definition of the personal payday loan
A personal payday loan is a consumer credit agreement. It is also called installment loan or personal payday loan for all purposes.
This credit allows you to borrow money to finance your projects, whether it’s an unforeseen expense, a purchase of consumer goods or funding for various services. It is not necessary to provide a personal contribution, however, the amount borrowed and the interest must be repaid in full.
The main feature of personal credit is that it is unaffected. That is, it does not finance a defined purchase. You do not have to provide documentation to support the purpose or the amount borrowed under this loan.
If you want to make the trip of your dreams in Asia, finance your child’s studies, or buy new furniture, the personal payday loan for all purposes is the appropriate credit. It allows you to finance your many projects without having to touch your savings or your investments. To find the best deal, simply complete a personal payday loan simulation on Petty Scherner and compare more than 40 financial institutions!
How much can I borrow with a personal payday loan: comparative amounts
In Belgium, there is a wide range of personal payday loans such as wedding loan, decoration loan, digital or electronic equipment loan, student loan… These different types of loans are unallocated and all work in the same way. The name of the loan can change from one bank to another.
It is important to distinguish between an unallocated and an assigned personal credit. The loan is a personal payday loan that allows you to buy a specific property such as a car, a motorcycle or to renovate or finance the installation of solar panels.
The loan for all purposes is an unrestricted consumer credit, which allows you to finance all types of goods or services not specific, such as holidays, a family event (baptism, marriage, death…) the purchase of new furniture, the purchase of household appliances. This type of loan is usually called personal payday loan for any purpose or motive.
Whether assigned or unassigned, installment loans work in exactly the same way. The only difference is the purpose of your loan. Whether you take a personal payday loan all purpose to finance part of your vacation in Australia or to redecorate your apartment, this does not change the nature of your personal credit, since no supporting document is requested. Moreover, unlike the personal payday loans allocated (car loan, motorcycle, works), the type of loan generally has no impact on the interest rate (APR). Interest rates are generally similar.
How much can I borrow with a personal payday loan?
You can choose the repayment period of your personal credit. However, the maximum duration is set by Belgian law by the Royal Decree of 14 September 2016 and varies according to the amount borrowed and the decision of each lender. Therefore, depending on the amount borrowed, the duration varies from a minimum of 1 year (12 months) to a maximum of 10 years (120 months).
The minimum and maximum amount you can borrow with a personal payday loan for any purpose varies from bank to bank. Generally, the minimum amount for a personal payday loan is € 1,250. However, some banks allow obtaining smaller amounts, from 500 €. The maximum loan amount for a personal payday loan can be up to € 100,000. Others limit the maximum amount of a loan to € 50,000 and others allow a maximum credit amount of up to € 150,000. And these numbers may vary if you apply for an installment loan.
To find out the minimum and maximum loan amounts of all banks, see our comparison of personal payday loans in Belgium on our website Petty Scherner. Another bank may offer a much better personal payday loan rate. You will find in our loan simulator the current rates charged by banks as well as a detailed description of each product.
What is the cost of a personal credit?
A personal payday loan always has a cost. The cost associated with the credit are the interest as well as the expenses of file. This cost is expressed by a standardized indicator which is the APR. It includes the borrowing rate as well as the application fees. It allows to compare objectively the credits between them.
The interest rate is fixed when you subscribe to your installment loan contract and will be fixed throughout its duration. The bank will not be able to change the rate later. The total cost of the loan is known from the start and can not change.
The interest rate however varies depending on the bank, the amount borrowed, the duration of the repayments and the type of credit chosen. Sometimes these rates are more interesting if you apply for credit online. Our comparative personal payday loans in Belgium saves you time and money. Petty Scherner helps you quickly visualize the best online installment loans from all suppliers in Belgium. Do not wait to save money and compare personal payday loans now!
Can I get a loan after 60 years?
Most banks and credit organizations are adapting to increasing life expectancy. Today it is possible to borrow for older people, provided however to provide sufficient guarantees. Be aware that credit without a bank can be an interesting alternative. To find out more about senior loan options, do not hesitate to consult our comparison of personal payday loans.
Do I have to take out insurance with a personal payday loan?
You do not have to take out insurance with a personal payday loan. However, it can be strongly advised by the lender, especially if the amount of your loan is high. Therefore, if you happen to have an incident that prevents you from repaying your current personal credit, personal payday loan insurance covers the repayments for you. A loan insurance is therefore useful in case of job loss, permanent or temporary disability, illness, death…
Certain conditions may be applicable and different from one bank to another. Therefore, please inquire with a bank or insurance agency for more information.
Can I prepay my personal payday loan?
You can repay all or part of your loan before the end of the contract. However, banks may charge you additional fees, called re-employment fees. This cost of compensation is limited by law and varies if the refund is full or partial.
What are the advantages of a personal payday loan?
The main advantage of the personal payday loan in Belgium is that it does not require any justification. You can use the borrowed money as you wish as long as you can repay the fixed monthly installments over the period of time determined. Do not confuse this type of loan with the so-called “personal payday loan without proof”, which does not refer to a credit agreement for which no proof of income is requested, but rather to the fact that the acquisition you wish to finance is not to be justified by the bank, you will always be required to provide proof of your income.
Note, however, that a credit granted to a bank or credit institution is a reliable source of funding. In advance, you know exactly how much money you will receive. No surprise either on the monthly amount and the total amount to be refunded. The interest rate (APR) is also known from the outset and is fixed in time.
What are the disadvantages of a personal credit?
The main disadvantage of a personal payday loan is its higher rate. Since the requested financing does not require any supporting documentation and therefore can create more risk for the banks, the interest rate of an installment loan will generally be higher than for an affected loan such as mortgages, auto loans for new or used car, motorcycle or works.
personal payday loan at the best rate: how to find it?
Petty Scherner allows you to simulate and compare interest rates, monthly repayments and the total repayment of more than 40 banks in Belgium. Our online comparator is private and 100% free. Very easy to use, it informs you in a clear and transparent way about the conditions, advantages, disadvantages and offers of each bank. We also show you all the loans for which you qualify.
In order to find the personal payday loan at the best rate, it is essential to compare the offers of the banks according to the desired amount. To do this, go to our comparison table of personal payday loans here. Comparing the credits, you will see for example that for an amount of € 10,000 and a repayment period spanning 36 months, Belgons offers an interest rate of 6.5%, while the Europabank personal payday loan has an APR of 4.9. %.
It is therefore important to estimate the amount needed to finance your project to be able to find the corresponding offer.
Keep in mind, however, that borrowing money also costs money and you need to choose an amount based on your needs and finances. In just 30 seconds, Petty Scherner allows you to find the cheapest personal payday loan in Belgium. Do not wait any longer to compare all the banks and save up to € 1,000 on your personal credit!