What is a payday loan?
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.
What types of loans are there?
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.
What amount can I borrow with a payday loan?
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.
During which period do I have to repay my payday loan?
Why should I compare payday loans?
Are payday loans for seniors arranged differently?
Do I have to take out insurance with a payday loan?
Can I pay off my payday loan faster?
What are the benefits of a payday loan?
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.
What are the disadvantages of a payday loan?
I just want to compare cheap loans. How does the payday loan simulation work?
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.