Comparing JKP from a personal loan

In this article we will discuss the annual percentage rate or APR of a personal loan . Borrowing money also costs money.

That is clear to most of us. In order to clearly indicate to the consumer what a loan actually costs, use is made of the term annual percentage rate or APR of a loan.

Those who apply for a loan want to have the opportunity to compare different providers. Just like all loan types, costs and fees are also linked to the personal loan. These costs consist first of an interest that must be paid on the borrowed money. In addition, banks and lenders can count a number of extra costs such as file costs. Borrowing money can therefore become unclear. In order to be able to compare properly, the JKP of a personal loan was therefore created.

  • The total cost of a personal loan therefore consists of 2 elements. There is first and foremost the nominal interest rate. Suppose you decide to borrow 5000 euros. The interest rate of the loan is 5%. This is not yet the APR of a personal loan, but the nominal interest rate.
  • As a consumer you could therefore reason at first sight: If I pay 5% interest on my credit, I have to pay 5000 x 5% = 250 euro interest after one year.
  • However, this is often not true. With many personal loans, the contract states that the interest is not calculated per year, but over a shorter period.
  • From the first month after deriving, interest is charged, namely 1/12 of 5%. Every month the outstanding debt increases a little because there is also an interest on the interest.
  • After a year, therefore, more than 250 euros interest will be owed on the outstanding loan.
  • There is already some financial mathematics around the corner. We like to refer the lovers of formulas and numbers to this Wikipedia page .
  • In any case, it is clear that it is not easy for the average credit applicant to calculate this yourself.

APR of a personal loan and costs

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  • The bank or lender may charge additional costs when taking out a personal loan. These file costs are, in principle, clearly stated in the contract. Yet this also makes it more difficult for people to compare loans.
  • That is why banks, creditors and brokers are always obliged to clearly state the annual percentage rate or APR of a personal loan. This APR shows the real annual cost of the credit.
  • You do not have to be a crack in mathematics when you take out a consumer credit . You should not fling out whether bank A calculates its interest monthly, bimonthly or annually. You also do not need to create an Excel file with all possible costs associated with the personal loan.
  • It is sufficient for the consumer to compare the APR of a personal loan with that of another personal credit. The loan with the lowest APR is in any case the cheapest of the two. This is calculated independently of the nominal interest rate and costs.

APR and risk

  • A lender using a lower JPK receives a lower fee for lending money. The interest rate is also a reflection of the risk that the lender is prepared to run. A loan with a low APR is therefore more difficult in practice.
  • A lender who charges a higher APR will be more risky. The chance that a loan application will be approved is higher. For example, the file of someone who has been blacklisted will always be considered riskier.
  • The APR of a personal loan is, like all other loans, limited by the legislator to the top.
  • This article emphasizes the personal loan. For the sake of clarity, we would like to mention that this money applies to all forms of consumer credit, such as a car loan or a loan for a motorhome.

Money lend personal credit – personal loan

Do you want to take out a credit on the best terms? Borrowing money with a personal credit or personal loan is a good way to finance your purchase.

You have a clear repayment plan and you know exactly where you stand beforehand. You can go to the bank for loans for all purposes. This on interesting terms and tailored to your options and budget.

  • If you are faced with an important purchase or large expense, it sometimes happens that your bank account is being used.
  • You may decide to go red in your bank account.
  • If you do this for a longer period of time, the interest rate rises high. Higher than if you had subscribed to personal credit for money.
  • With a personal loan you have a clear view of what you will repay per month. You know the monthly amount, you know how many months it will take before the loan is set flat.
  • You also get a clear view of the interest that goes with it.
  • All these things are already known before you conclude the credit agreement. You will not be faced with unpleasant surprises in this way. This will prevent you from ending up on the black list sooner or later.

Money lend personal credit: benefits

The personal loan is one of the four large loans, in addition to the renovation loan or renovation loan, the mortgage loan and the car loan. So if you are making personal loans in the context of money lending, you will mainly know the monthly reimbursement. It is important that you check with yourself whether this reimbursement is feasible for you. If not, you can sit with the credit broker and see if it is possible to extend the term. If you can borrow the same amount over a longer period of time, the monthly repayment will be reduced. You do pay more interest because the loan runs longer. It is therefore important to carefully weigh the amount to be borrowed and the duration in advance.

Consumers who borrow money on a personal loan are well protected by the legislator.

  • The lender is obliged to verify with each loan application that the applicant is not on the blacklist. This entry at the National Bank plays a major role in the approval of the application. Anyone who is on the black list and is the owner can possibly receive a loan under certain conditions.
  • The maximum interest rates for personal loans are set by the legislator. The consumer is thus well protected against so-called usury interest.
  • A personal loan can always be repaid early. This does involve extra costs. In addition to the outstanding capital, the bank or lender also requires a compensation equal to three months’ interest. You can always check whether it is interesting to have your loan reviewed .

Borrow Money Personal Loan Online Application

In this article we will discuss the personal loan . There are, of course, various types of loans.

Maybe you are planning to buy a car? Perhaps you need a new washing machine or furniture? Or maybe you need a well-deserved break and want to look for brighter places.

Personal loan alternatives

We can not just pay most major expenses in cash. In addition to the mortgage loan where the house is taken as a guarantee, there are also specific loans for all other purposes. The renovation loan with possible renovation premium and the auto loan we discussed separately. A very common form of borrowing is the personal loan. Do you need money? You can of course also go below zero with your current account or use your credit card. The big difference with a current account or credit card is that you borrow a certain amount of money from a personal loan. This then takes place at a fixed interest rate and with fixed monthly repayments. These are clearly known at the start of the contract.

Borrow money personal loan: benefits?

  • Whoever goes red in his current account pays a lot more interest. So a personal loan is often better to manage your budget. You will be credited a fixed amount to your account. You know what you will use the money for. It is clear in advance how much you have to pay back monthly. This clear approach makes it easier for most people to repay the loan correctly. This in the long term avoids problems with the National Bank and the black list .
  • A credit card is easy and tempting. However, you may be below zero for a longer period of time while interest continues to rise. You will therefore be faced with surprises if you do not pay back on time and inadequately. The high interest and the capital due that still have to be repaid make it insurmountable for many people to repay the loan correctly and on time.
  • With a personal loan you can already avoid this risk. If the bank allows you a personal loan, your file will be checked beforehand. We will check whether you will be able to repay the loan on time. In addition, the bank will also take into account the purpose of the loan. The follow-up to this article ‘borrowing a personal loan’ can be found in the article interest rate personal loan.

Cheap Personal Loan

Are you looking for a cheap personal loan. Every form of borrowing gives its own characteristics.

It is important to find a cheap personal loan that also fits seamlessly with your income and financial situation. With the right knowledge you can borrow cheaper. In this article we will discuss the main characteristics of the personal loan.

What is the loan for?

  • The loan on installment or personal loan is a widely used form of borrowing money. You can actually finance just about every expense. You can take out a cheap personal loan to go on a trip, pay unexpected expenses, pay a loyalty, and so on.
  • So when you compare loans, your first question is: is the personal loan what I need? For example, if you want to get a car, a cheap personal loan is more expensive than a classic car loan. For certain work in the home, a renovation loan can be considered. You may then still enjoy a renovation premium .

Where can you find a cheap personal loan?

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  • A good loan is a loan that suits you. This means that you clearly know in advance what amount you have to repay per month. And that you also know that you can repay that amount with your current and future income. Otherwise it does not make sense of course. A cheap personal loan is not interesting if it exceeds your possibilities.
  • The best way to find a cheap personal loan nowadays is via the internet. Any serious lender or broker offers you the opportunity to submit an application online. Always enter all data correctly and do not leave anything behind. If you are blacklisted or have recently risen , the file manager will definitely know this.
  • It is important to note that you do not have to submit an application randomly on all possible websites. People often think that they maximize their chances. The reverse is true. Start with a professional credit broker with a lot of experience. Enter your file as completely as possible. Be honest about your data too.
  • Your file will then be examined in detail. If there are any ambiguities you will be contacted and the file will be discussed with you. In this way, the right loan is applied for. This way you have the maximum chance that your cheap personal loan will be approved. It is better to make one correct and complete credit application. So you have maximum chance that the loan is also approved.