The personal loan is a form of consumer credit provided to private individuals. It differs from a mortgage loan or a real estate loan intended for the purchase of real estate or for the financing of notary costs, but also from a professional loan.

The costs of the personal loan are known before signing the contract. This is an installment loan for which the interest rate, total costs and monthly payments are usually fixed. However, they can also be variable. the amount you borrow and the chosen repayment term influence these elements.

Interest rates for personal loans are generally lower compared to other credit solutions such as revolving credit and revolving credit cards.

With a personal loan you can finance all your personal projects and there is usually no contribution involved.

You can start your application with a credit simulation. This gives you an overview of the conditions and prices.

Personal loan and installment loan: what is the difference?
‘Installment loan’ is the legal term for a personal loan.

“Consumer credit” is a synonym that is often used in Belgium.

“Personal loan”, as “personal loan” is just the commercial name.

So these three terms mean the same thing.

o choose the loan that suits you best, it is advisable to start by carrying out a personal loan simulation.

This allows you to calculate the monthly payments on your credit.

The simulation also makes it easier for you to choose the amount and duration of your loan. Depending on your income and your monthly budget, you may prefer to opt for a loan with a shorter term, but with higher monthly costs, or the opposite.

The personal loan is a credit agreement between a private individual and a lender.

The lender lends a sum of money to the borrower, who undertakes to repay this amount with interest, according to the terms of the contract.

Once the contract is signed, the money is usually paid out within a few days.

Generally, repayment begins the month after the money is paid.

Involved personal loan vs. unaffected
A personal loan can be earmarked or unallocated. With this type of loan you can finance all your personal projects. No input is generally required.

A granted personal loan is a credit whose amount is used to finance a specific personal project. The borrower must therefore justify the loan amount through documents such as invoices or purchase orders.

An unassigned personal loan, on the other hand, is a loan that does not require the borrower to prove the use of the requested amount. It is necessary to explain to the lender what use will be made of the borrowed money.

In order to analyze your situation, a lender needs certain personal information from you. This way she can check whether your request corresponds to your repayment capacity.

Your situation must be proven on the basis of various pieces of evidence. This includes documents proving your identity, your sources of income, the composition of your household and your fixed costs (rent, existing credits, etc.).

The lender will also consult the database of the Centrale des Crédits aux Particuliers. If you are registered, you cannot apply for new credit.

Yes, it is perfectly possible to take out a loan online.

Some lenders only allow you to submit your application online. However, other organizations offer personal loans 100% online. This means that everything, from the application to signing the loan contract, is done digitally.

These are the steps you need to take to obtain a personal loan:

Send a loan application: Contact a lender and send them your loan application, indicating the amount you wish to borrow, the project to be financed and the repayment period.

Provide your supporting documents: send the lender the requested documents so that he can check your identity, the nature of your project and your financial situation.

Discuss with the lender: you will receive an initial credit offer. You can then talk to your lender until you both agree on the repayment terms.

Sign the contract: The signing of the contract marks the beginning of the loan. You will receive the money in your bank account a few days later and start paying back the following month.