If you are curious about the ‘lowest interest rate loan’, we advise you to stay on this page. We give you some useful tips, so you know what to look for when comparing credit providers.
More than 50 loan products, how do you find the lowest interest rate loan?
If you want to borrow money and then again at the very lowest rate, you can choose from around 50 loan products in the Netherlands. There are quite a few. How do you ever find the cheapest loan, are you wondering? It is already a lot easier to find a matching loan first. One that perfectly matches your spending goal. You can roughly choose the personal loan or the revolving credit. We will inform you further on the page about these 2 loan forms. We also inform you about the lowest interest rate of the WOZ credit. This is a revolving credit for homeowners.
Choose a credit that suits your spending!
Borrowing money as cheaply as possible? Then you do not have to compare loans with each other on the prize run, so without any preparation. Always decide which loan you want to close. Each type of credit again has its own unique characteristics. For example, lenders use different conditions for a personal loan than with a revolving credit. Do you take out a low-interest loan with low interest rates, but do you not properly match the loan with your loan target and your financial and / or personal situation? Then the loan costs can be quite high.
As an example we take a renovation in this case. When renovating a home yourself, you never know in advance how much money you have lost. Unless you outsource the renovation and agree a fixed price with the contractor in question. If you take out a personal loan for a renovation, you agree to a credit limit with the bank. You will receive this amount into your account in one go and you will immediately pay interest on this (included in the monthly installments). You have chosen a term of 72 months. But suppose that the costs for the renovation are much lower than budgeted and you have borrowed too much money, then the personal loan (closed at a low interest rate) suddenly becomes a very expensive loan.
You continue to pay interest on the total amount that you have borrowed. With a revolving credit you would have borrowed much cheaper money. After all, you only pay interest on the amounts that you withdraw. With some personal loan providers it is possible to pay off without penalty. Comparing the conditions is at least as important as comparing money borrowing on the basis of interest rates.
Personal loan and fixed low interest rates
The personal loan can, however, in many cases be the cheapest loan, if you only exploit the properties of it! With such a loan you opt for a lot of firmness and certainty. This gives you the certainty of a fixed interest rate, term and thus monthly installments. It goes without saying that a lower interest rate automatically results in a lower monthly installment. You prefer to close a personal loan only for an expense of which you know the total costs. As is the case with the purchase of a car or caravan, a new kitchen or bathroom, the construction of a garden, et cetera. You will never borrow more or less than you need. That way you never pay too much interest.
All benefits fixed interest:
- A fixed-rate period gives a lot of certainty. This way you know exactly what your monthly expenses are during the term.
- In addition, the personal loan is insensitive to interest rate rises; If the market interest rates rise, then this does not have any unpleasant consequences for you!
- You also have no ‘residual debt risk’ during the term of your loan.
- Because you can not withdraw extra money in the meantime, the monthly costs remain the same and you will never lend yourself irresponsibly. You therefore pay off according to a fixed repayment schedule.
The lowest interest rate on revolving credit
With the revolving credit the interest rate is variable. That can have several advantages. For example, a fixed interest rate (such as with the personal loan) is often higher than the variable interest rate. Do you fix that interest for a long time? Then you pay more. With a revolving credit, you pay a lower entry fee anyway. This can rise afterwards. That is why we advise you to opt for a low credit limit with this credit form. This keeps the costs within limits, if interest rates suddenly rise sharply. Conversely, with the revolving credit you can also benefit from a fall in interest rates. If the market interest rates fall, you can benefit directly from this! That is not possible with the personal loan.
All advantages variable interest:
- If you take out a loan with variable interest, the interest rate is usually lower.
- The term is also variable: You can redeem and withdraw whenever you want.
- You may withdraw the money you redeemed.
- Does the market interest rate fall during the term? Then you borrow cheaper money!
- However, if you continue to pay the same monthly amounts, you will resolve the loan more quickly …
Interest rate WOZ credit is lower than other forms of lending
Finally, we would like to point out the advantages of a credit form for homeowners: The WOZ credit. This is a special kind of revolving credit that only people with their own home can take out. If you have your own house and want to borrow money at the lowest interest rate, then you should certainly consider this form of loan. Because the interest rate of a WOZ credit is usually lower than that of an ordinary revolving credit. After all, the bank applies lower risk storage for homeowners.