When borrowing money you have the choice between a revolving credit or a payday loan. The most important difference between the two loans is that a payday loan has a fixed term and a fixed interest rate. You receive the loan in one go to your bank account, after which you pay off the same amount every month, regardless of interest rates. Withdrawing extra money is not possible. The payday loan is a great choice if you want to know exactly what the credit will cost you.
Interest deduction for renovations
Another advantage of the payday loan is that you can deduct the interest if the loan is used for a renovation of your first owner-occupied home. The home must be your main residence. No financing interest can be deducted for a holiday home (as a second home). The money may also not be used to furnish the house.
Apply for a loan
Your free request for a payday loan will be sent to various lenders. Although the exact loan amount depends on your personal situation, this is usually between € 2,500 and € 75,000. Within 24 hours you will receive quotes from various internet banks in an overview. The bank pays the loan into your bank account in one go.
Borrowing in the Netherlands
According to a Survey by Goview, more than 30 billion euros had been lent. The majority was in red (43%) followed by revolving credit (37%). payday loans (11%), credit cards (7%) and mail order credit (2%) are at a considerable distance. A payday loan is the largest with an average of € 8,672. This is because this type of loan often finances a car. 91,000 payday loans were granted in 2013. Car dealers provided 45% of these loans.
They lend more than the financing companies. The share of ordinary banks has fallen considerably to 13,000 loans. The car dealers are more expensive with their loans than the finance companies. The brand of the car also plays a role. A Fiat dealer calculated the cheapest interest with 6.9%. The most expensive were the dealers of Peugeot and Citroen with 10.4%.