Works loan – Find the best renovation credit in Belgium for 2018.

Characteristics and operation of the works loan

Characteristics and operation of the works loan

The work loan granted by banks and credit organizations is a classic form of assigned consumer credit which will allow you to carry out basic works such as repairs and insulation.

You can also use this money to do comfort work by installing a swimming pool, fitting out a new bedroom in the garage or knocking down partitions to create more space. After you have researched to find the best job loan offer, send your request to the credit agency of your choice in bulk to the one offering you the best rate.

If you make your request to an online bank, the answer in principle is done immediately and you will have a period of reflection before signing the final contract. Obviously, you will have to provide supporting documents.

After analyzing the necessary supporting documents, the organization you have chosen will give the backing for your work loan and the funds will be paid directly into your current bank account. From there, you will have to repay your loan with the interest rates applied, according to the schedule specified in the contract. So, don’t play pigeon and think of comparing rates well so as not to throw your money out the windows.

In all cases, the rules of the consumer code will be applied and you can make an early repayment without penalty if you manage to repay less than $ 10,000 per year. It is the same for the withdrawal periods of 7 days after obtaining an offer in principle, and 14 days after signing the work loan contract.

How to simulate work loans?

How to simulate work loans?

If in the past, you had to go around the banks to find out about work loan offers, today you have at your disposal online simulation tools. This is the case with my site, which offers you an easy-to-use tool that will allow you to compare the different ones coming from our partner financial organizations.

Who do we say thank you?

In just a few clicks and you can start the credit search procedure by indicating the funds you need, the amount of the monthly payment that corresponds to your repayment capacity, as well as the duration you want to repay your work loan, taking into account interest and costs. The results of the research will give you an idea of ​​the rate applied by the various establishments, and this based on the amount you have indicated and the repayment period.

Basically, in two minutes you can save several hundred USD.

Then, you can launch a request for a quote from the banks of your choice (the best is to ask for 2 or 3 to see which ones are accepted) and you can use these results to compete and get a work loan advantageous or just ask for your credit if you also don’t want to waste hours to save 10 USD.

After getting the answer in principle, you can start collecting the necessary supporting documents (identity document, proof of income, etc.) and you will send them with the request for credit to the bank address.

This online simulation of the work loan is all the more necessary, since the rates applied vary on the market and it is difficult to decide. Indeed, you have the possibility of finding a credit at 2.5% interest rate at certain banks even less if we are talking about a loan for ecological work, while other financial organizations will go up to 10%.

Of course, the calculation of this interest rate essentially depends on the amount of capital borrowed and the duration of repayment.

But other factors can help tip the balance, including the stability of your professional situation and your ability to repay.

How to choose your renovation loan

How to choose your renovation loan

To find the most competitive work loan offers, refer to the criteria for choosing this type of consumer credit.

Starting with the global effective rate (APR), this universal percentage which takes into account all the costs used for your credit from your subscription until payment of the very latest installment.

If you already look at this you have already done 95% of the job!

Then you just have to worry:

  • insurance costs because yes you can take out insurance to supplement your credit such as job loss insurance if you become unemployed or life insurance like this if you die your children will not have to repay your credit. It is always useful even if I wish you a beautiful and long life in your newly renovated house.
  • application fees, there are rarely, but always inquire not to get pigeon.

A work loan is a loan at a fixed rate and not a variable one. With a fixed rate, you know in advance everything about the amount of capital granted, the cost of monthly payments, the rate applied, and this, until payment of the last due date.

The different types of credits.

The different types of credits.

Depending on the scope of your work and your personal preferences, you have the choice between several credit formulas for your work: the renovation loan, the personal loan moreover I also have a site about personal loan in Belgium, the revolving but good credit it costs a max and the mortgage.

The assigned works loan

If you need a small sum, with a work loan allocated, you can use the funds only for the realization of the work stated at the request of the credit or in the coming from professional companies that you will have provided in your file of credit application.

So no question of offering you the latest iphone with your credit, on the other hand you will benefit from an advantageous rate.

Thus, your lender has the right to verify that the money was really used to finance said work. But you also have the advantage of being able to cancel the credit if the work has not been completed. Thus, a credit cancellation clause is provided for in your work loan contract, with the necessary conditions of application.

What is more, you must at all costs opt for a restricted work loan if you intend to back up this credit with a zero-rate eco-loan. When the funds are released, they will immediately be paid to the company or craftsman who will be responsible for the work. On your side, you will start to repay the loan through the monthly payments and the interest rate applied. It is important to remember that the rate is always advantageous with the loan assigned work, which helps to reduce the total cost of credits.

In short, if you need to do work for an amount up to 30,000 USD, the work loan is probably the best solution but always check my stammering on the mortgage and the repurchase of credit ca can save you money.

Personal loan

Frankly, it’s not the right plan if you want the best rate, this loan is more suited to buy you the latest iphone or to pay for your daughter’s wedding.

But hey if you really want to finance your renovation with a personal loan these are the advantages and disadvantages.

Compared to earmarked credit, the personal loan is a more flexible option because you have more freedom regarding the end use of the funds obtained. For example if you are renovating your living room and you think that a 50 inch flat screen is essential for a successful renovation, personal loan is the best.

Thus, you have the possibility of using the funds for your DIY work, where you do not necessarily need the intervention of a professional company to make a quote, or even hire one of your relatives to perform the works. Concretely you can also do the work yourself with a classic renovation loan.

It is also possible to use the money to buy household appliances.

This work loan formula “without proof” is granted to you without asking you for explanations as to the use of the money, but you will still have to provide the necessary bank guarantees like your last 3 pay slips, your statements bank account, your ID, etc.

Revolving credit

I don’t even know why I’m talking about it, except if you want to throw your money out the window there is no worse! Revolving credit or revolving credit in English is exactly the same principle as a credit card! You are given a certain amount of money at the start and each time you spend you have to repay at a rate that explodes the ceilings and each time you repay, the amount you can “use” increases the value of the repayment.

The only advantage is your money reserve, which is replenished as you make your repayments.

So, this formula is simple, because you already have a reserve of money, you can start your work directly, because the money is already available. However, its use must be well thought out, since the interest rates applied are quite high.

You are buying a house and you are going to have renovations to do, include your work directly in your mortgage, you will have more time to repay but it will cost you more! Infact if you need a lot of money for your work it is the best solution. In addition the rates are quite interesting.

A work loan for whom?

A work loan for whom?

To hope to get a work loan, you must make sure to meet the eligibility conditions of your bank. Thus, you must be an adult, having stable sources of income, not appearing on the file of payment incidents of the National Bank of Belgium, having a fairly high debt ratio allowing you to repay the credit while by having enough to live on with the rest of your monthly income excluding charges.

Before signing your works loan contract, calculate the total cost of your credit and make sure that you will always be able to repay the credit until the last due date.

To help you, use our work loan simulation which will give you the details of your credit, data which will be useful for you to anticipate your monthly needs and insert the amount of the monthly payments in your monthly charges.

A loan to finance what works?

A loan to finance what works?

The construction loan is a source of financing granted to any owner of a primary or secondary residence, as well as to tenants who want to do development work in their apartment or house.

As a borrower, you will determine for yourself the amount necessary for the completion of the work, as well as the duration of the monthly payments according to your budget and your repayment capacity.

With regard to the work that can be financed by the loan, you have renovation work, decoration or development work, as well as household appliances. As soon as you obtain the approval for the release of funds, you will have access to the funds paid only once into your current account. According to consumer codes, the maximum amount for a work loan is set at $ 75,000, which you can repay over a maximum of 5 years.

Some advice on work loans

Some advice on work loans

To get your work loan, contact financial organizations that will help you analyze your needs and calculate your credit. In addition, our work loan comparator will guide you to the offers that best meet your needs.

And to attract favors from your bank, prepare your credit application well and make sure that your supporting documents can confirm that you are the ideal borrower with your stable job which allows you to have access to regular income, that you have a reliable financial behavior. With an assigned work loan, do not forget to include the estimate in your credit application, specifying the nature of the work you will perform.

In addition, the purchase order made by the contractor must specify that you are using a credit to finance the work, so as to guarantee that if the work has not yet been carried out, the credit will be canceled automatically. And if only part of the work is carried out, the loan amount will also be reduced.

In return, if you do not get a favorable response regarding the credit, you have the right to cancel the work. As for the personal work loan, it has the advantage of flexibility, because the calculation is made with reference to your real needs and your financial situation.

Besides, you will not have to provide personal contribution while you have personalized customer service for the entire duration of the loan. Finally, insurance is an optional option with the personal work loan, but it is recommended to prevent any financial and health concerns that may prevent you from ensuring your commitment. In this case, the rest of the monthly payments will be paid by the insurance company.

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