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Payday Loan – compare all loans

A payday loan is a consumer credit on installment and can be used for all purposes. This loan therefore makes it possible for you to finance all kinds of expenses, whether unforeseen costs, the purchase of a consumer good or the financing of certain services. What you should certainly not forget here is that the loan amount plus interest must be fully repaid.

The most important characteristic of this loan is that you can use this loan for all kinds of purposes. For example, if you want to finance a car, make a dream trip to Asia or pay for your children’s studies, you can take out a payday loan without having to use your savings account or investments. Therefore, you do not have to show documents with the application to justify what you will use the money for.

In Belgium there is a whole range of payday loans for all purposes such as the energy loan, the small loan and the student loan. These loans do not have to be used for one specific case and they all work in the same way. The possible duration varies from bank to bank.

It is important to make a distinction between borrowing for a specific purpose and an ordinary payday loan without a specific purpose. A payday loan with or for a specific purpose makes it possible to pay for a specific project, such as buying a motorcycle or renovating your house. The other type, the ordinary loan, on the other hand, is a consumer credit and is also referred to as a payday loan for all purposes or a multi-purpose loan. Whether you are going to pay for a holiday to Australia with the money, or want to buy a second-hand mobile home, you do not have to justify why the loan is being requested. Unlike with loans for or for a specific purpose, with payday loans for all purposes there is no difference between the annual cost percentages. The interest calculation is so easy: feel free to visit our payday loan simulation.

Do you ever wonder: “How much money can I borrow?” The total amount depends on the bank, so it is advisable to compare loans. In general, the minimum amount is € 1,250, although this can also exceptionally be € 500. The maximum amount will be determined by your credit history, repayment capacity and financial situation.

Cheap borrowing is of course a dream for many. To help you with this, you can compare all cheap loans for free on OneTopNotch. This way you can immediately see which bank you prefer and you can make your choice with certainty. The amounts of the different banks can be found in our payday loan simulation.

Depending on your credit history, your personal and financial situation, the chosen institution, the annual percentage rate (APR) and the chosen term, you agree on an amount with the bank. You can choose yourself how many months you will repay your loan. However, the maximum duration is set by Belgian law through the Royal Decree of 14 September 2016. Therefore, the duration – depending on the amount borrowed – is usually between one year (12 months) and ten years (120 months).
A payday loan always entails extra costs. These costs include interest and file costs and are expressed in the APR. The cost percentage makes comparing loans a lot more accessible and easier. The APR is fixed and does not change during the entire term of your loan. In other words: the bank cannot adjust the interest rate of the loan and is fixed at the start of the loan. The interest rate depends on the chosen bank, how much money you borrow, the term and the type of loan.
Banks and financial institutions are adapting to increasing life expectancy and therefore do not make borrowing exclusively possible for younger generations. Most banks offer specific loans for older people, since senior citizens are in a different phase of their lives. They often no longer work, have a pension and run a higher risk of illness or the inability to pay off long-term loans. Borrowing money at an older age is therefore possible if sufficient guarantees are provided, such as proof of taking out sickness and invalidity insurance.
With a payday loan you are not required to take out insurance. However, insurance can be highly recommended by the bank, especially if the amount borrowed is high. If something happens that makes it impossible for you to pay your repayments, the insurance will pay this for you. Extra insurance can therefore be useful, for example, if you fall out of work, become permanently or temporarily disabled or in the event of illness or death. The specific insurance conditions depend on the bank. So please inform yourself well at the bank or the insurance office.
You may repay all or part of your loan before the loan comes to an end. Banks can then ask you for an additional fee, namely a reinvestment fee. This reimbursement is legally limited and varies when the loan is fully or partially repaid. For example, you pay no more than 1% of the early repaid capital if the contract runs for more than a year, and no more than 0.5% if the contract runs for less than a year. However, the bank may not charge a reinvestment fee if you repaid the borrowed amount earlier in a period in which the debit interest rate, ie the interest rate that you pay annually for your loan, is variable. These are the rules for payday loans taken out after December 1, 2010. Different rates apply for older contracts.

You do not have to justify yourself

The biggest advantage of a payday loan is that you don’t have to justify what you want to use this loan for. You can choose for what you want to use this money, as long as you are able to repay a fixed part of the capital with interest each month for the entire duration of the loan.

A structured reimbursement

A loan granted by a bank or financial institution is a reliable source of financing. You know in advance exactly how much money you will receive. You also know perfectly how much you will have to pay monthly and what the total repayment is. Finally, the APR is also known at the start of the loan and does not vary over time. By comparing loans through our payday loan simulation, cheap borrowing is within reach.

The biggest disadvantage of a payday loan is the higher interest rate. Since you do not have to account for what you will use the money for, this increases the risk of the banks. As a result, the interest rate of a payday loan will generally be higher than that of a loan for or for a specific purpose. In addition, you must always be aware that borrowing money costs money. The amount you borrow is increased by the percentage that you have to pay in interest. So make sure that you can bear this responsibility financially.

On OneTopNotch you can calculate the interest and the monthly repayment and compare the total costs of loans from more than forty banks in Belgium. Our online payday loan simulation is 100% free, easy to use and informs you in a clear and transparent manner about the conditions and advantages and disadvantages of each bank.