Applying for a loan through the Local Bank is a last resort if you need real money and don’t get a loan anywhere else. Perhaps you have a low income, you have a credit check listing or you are older than 65 years. If a bank or lender does not provide you with a loan, a municipal loan is always worth a try. With a social loan through the municipality you borrow a one-off amount at a fixed interest rate and duration, after which you pay off a fixed amount each month.
Borrow money municipality – How much to borrow?
Just like all other loans, the amount of a loan from the municipality depends on several factors. For this purpose, the municipality looks at your age, your income, your expenses and whether you have a credit check listing. You usually have the option of borrowing a minimum of 500 euros and a maximum of 4,000 euros from the municipality. However, this differs per municipality.
Borrow money from the municipality – Interest
Borrowing money, costs money. This is also true if you borrow from the municipality. Most municipalities charge a competitive interest rate for their loans. That means that they charge as much interest as any other bank or lender. It is therefore not the case that you pay a lower interest rate or are cheaper when you borrow through the municipality. The advantage lies in the fact that you get a loan at all.
Apply for a Local Bank loan
Not every municipality in the Netherlands provides loans, but you can only apply for a loan in the municipality where you live. So if you live in a municipality that does not provide social loans, you will not be able to take out such a loan elsewhere. You can then only approach as many banks and lenders as possible and hope that there will be one that you want to provide a loan with. Here you can find out whether your municipality has a social credit bank that is taking out loans.