The personal loan online allows you to carry out projects that are important to you without having to save for months or even years, or take on other personal savings.
Landing an unforeseen or financing a project is what allows the fast online loan. This credit contract has the distinction of being “unallocated”. It is not intended to finance a particular purchase and is often used to meet certain expenses such as medical expenses, the cost of studies or the purchase of a new washing machine. The borrower is therefore not obliged to explain to his bank the reason for the immediate online loan request and can enjoy the loan amount as he wishes. However, there are various online loan formulas that adapt to the needs of the applicant such as the personal loan for work, for car / motorbike, for leisure and the personal cash loan.
The absence of justification on the use of the sum of money lent makes financial institutions more cautious and therefore more straddling the rules for accepting a personal loan. Lenders are doing further study on the profile of the applicant to have more collateral. They are particularly vigilant about the applicant’s employment contract, his income and the debt ratio.
Personal credit is a contract which can be spread over a period of a few months or even a few years, but without exceeding five years. The borrower will have to repay the amount of money collected by monthly payments during the term of the online loan.
To avoid the risk of over-indebtedness, it is preferable to check your creditworthiness before taking out a loan. To measure his repayment capacity, the borrower must take the sum of all his income and then calculate the amount of his charges. We must also consider the maximum debt ratio which amounts to 33% of income. The final calculation therefore corresponds to net income multiplied by 33%, from which the expenses are deducted.
ANTICIPATE LATE PAYMENTS
If the borrower’s situation changes in a negative way, following the loss of his job for example, he must inform his bank as soon as possible. He can thus try to renegotiate the terms of his personal loan or study the possibility of buying back credit if his personal situation does not allow him to consider repaying according to the conditions initially provided.
The consequences of a default can be significant. In Belgium, the non-payment of two monthly payments obliges the lending organization to denounce the credit contract and to request the borrower’s file from the National Bank of Belgium. The borrower will no longer be able to request a loan request on the market until the dispute is resolved.
To choose your credit institution, use our comparison tool to calculate the total cost of your online loan, the fees and the monthly payments that you will have to repay. Click here to test our comparator for free.