Payday Loans in The Netherlands, All You Need To Know:
Compare the best personal loans in the Netherlands for free and in just 5 minutes. FUNDGECKO is out to help you have a seamless financial decision process by providing all the information you need about the best personal loans in the market. We equip you with all you need to know and do before signing up for a loan.
The current market for payday loans
We update you with the latest news about financing this month. Take a quick read through the most relevant news on consumer credit.
- The Netherlands is a country within the eurozone that has stable banking systems and financial markets. According to Statista, the average lending interest rate as of the third quarter of 2021 was 2.1%. That shows a stable financial system, making it very affordable to take out a personal loan.
- The European Central Bank (ECB) has stepped in to cushion financial providers and borrowers from sudden financial turmoil by announcing that it would gradually rather than suddenly increase the cost of borrowing.
Hence, take out a loan while the rates are still low.
How to compare between online loan offers?
Loan providers, either banks or private lenders have gained ground in the Netherlands’ market. Therefore, it’s prudent to compare between options before getting the friendliest of them all. However, you cannot compare options effectively without knowing which parameters to use, that is the interest rates, loan amounts, repayment periods, commissions and other fees, and many more.
For example to buy credit offers and save 600 euros
In the following table, we can see how to compare between online personal loan offers taking into account all factors.
By copying this table and performing different simulations according to the project we want to finance and the offer made by each entity, we will be able to know which one will be the best simply by comparing the total cost.
How to use FUNDGECKO to get payday loans
Our team of professionals is out to help you discover the best financial options. We make the work easier for you by informing you about a product’s characteristics, operation, and conditions.
These are the steps you’ll follow:
- Discover all financial products you’re interested in and compare them for free.
- Take a detailed tour through their files to learn about the contract conditions and the small print.
- Have your questions answered and your doubts cleared in the FUNDGECKO forum. Our experts offer a free consultation.
- Click on “Contract” to visit with us the website of every provider and start the loan application process.
- Our website has a comment section where you can add comments and views about our services to help other users.
How to apply for a payday loan?
While the methods of applying for payday loans in the Netherlands vary with entities, generally the process of applying for a payday loan is somewhat hassle-free. An entity will require an online application as another requires in-office applications.
Below are some of the steps you’re likely to make with any entity in Austria:
- Identify two or three entities that you’re interested in, consult about their services, and compare to find an option that best suits you. Be sure of the reputation of the entity beforehand.
- Fill out the application form that the entity sends you with your personal data and select your preferred loan conditions (amount, repayment term, and purpose).
- Get a pre-approval notification in a matter of minutes for the online application and days for the in-office application.
- Be sure to provide all the documentation requested to avoid going back and forth. You may submit the documents through whichever means that the entity requests you (mail, online, in-office).
- If the loan application is approved, the entity will send you pre-contractual information that has all the operational details and conditions of the loan including amount, term, interest, commissions, etc. Be sure to read through the whole information.
- If you agree with the terms and conditions of the loan, you’ll be required to sign up for the contract either through digital signature or in-office.
- Get the funds. Payday funds have fast concessions and may not exceed 2 days.
Requirements for payday loans in The Netherlands
It’s never enough to request financing from the friendliest loan provider until they approve our application. There are a number of aspects that the lender will assess such as our solvency to repay the loan before financing us.
Below are some of the irreducible minimums you’ll be required to meet with most loan options in the Netherlands:
- Be of legal age. Some entities will deny applicants who’re less than 20-years-old.
- Have proof of residence in the Netherlands. Expats will have to provide a permanent residence card.
- Demonstrate your ability to repay the loan through a stable and sufficient income.
- Don’t appear on BKR as negative credit history will hinder you from getting loans.
To avoid negative credit history, ensure you stay within the recommended level of debt, which is between 35% to 40% of your monthly income, and repay a loan before taking out another one.
Documentation for applying for a payday loan
Be sure to have all the documentation needed. Lack of even one piece of the documentation might disqualify you for the loan.
Below are the must-haves:
- Valid proof of identity
- Bank statements showing income and expenses of previous months
- The last income tax return (may not apply to small amounts)
- Proof of purpose. This may also not be required with small amounts
- Proof of income. Some entities will require the last 3 payslips, the receipts of the last pensions or the payment of the self-employed receipt, the social security settlement, and the VAT and income tax summary.
Taking out a loan from a bank where our income and receipts are domiciled will spare us from the hassle of much paperwork since the bank already has the information needed. If applying from a new entity, be sure to submit all the required documentation.
Who grants payday loans in the Netherlands?
In the modern Netherlands, banks no longer dominate the loan lending space. This happened after the 2008 financial crisis when other financial platforms and companies got a breakthrough way into the market.
Below are the lenders that broke into the market and have grown at a brisk rate:
- Bank entities
- Credit Financial Institutions (CFE)
- Private Lenders
- P2P Lending Platforms
Let’s take a quick look at each of the options and their services.
Financing through banks
- Wide range of products
- Big loans and loan flexibility
- Longer repayment periods
- Competitive interest rates
- Long application processes involved
- Loans attract more commissions
- Stringent eligibility parameters like seniority
Credit Financial Institutions
- Financing for any purpose
- Favorable interest rates
- Less commissions involved
- Quicker concessions
- Strict eligibility parameters like in banks
- Adverse effects on credit history
Financing from private companies
- Quicker concession
- Less strict eligibility requirements
- Loans accessible to newbies
- Unfavorable interest rates
- Adverse effects on credit history
Financing through P2P platforms
- Hassle-free online application
- Available to applicants with a negative credit score
- Excellent financing conditions
- High interest rates
- Slow concession
- Not available to applicants with a negative BKR score
FAQ: Frequently Asked Questions
What is a payday loan?
A payday loan is a type of credit that’s designed to be fast, short-term, and require fewer qualifications. The loan comes in handy when in need of a financial injection, say in case of emergencies or when buying a car, renovating your home, making a big purchase, and others.
Why don’t you give me payday loans?
Getting a payday loan in the Netherlands should be an easy process especially because fewer eligibility criteria are involved. However, if you’re not able to get financing, you might be having a poor credit score, or have failed to provide the right information and documentation to the lender.
What is the INE form for a loan?
The Standard European Information (INE) form is a document that the lender provides the borrower with that details the credit agreement, the terms of operation and service, and personal loan conditions: amount, interest, term, commissions, and other fees, etc.
What is the binding offer of a payday credit?
A binding offer is a document that the lender or entity gives you before you sign for the credit. The lender gives you 14 calendar days to go through the clauses and conditions of the loan, comparing options.
Can payday loans be paid in advance?
Dutch law allows credit consumers to make loan repayment in full or part before the required time. The borrower will be required to notify the lender in good time before making the repayment. Some lenders will have you pay the early repayment fee.
What if I take out a loan online and then regret it?
Dutch Law allows loan applicants to withdraw a loan 14 calendar days after taking it. However, if a loanee withdraws the loan later than the set 14 days, they may face some penalties.
What happens if I don’t pay back a payday loan?
Applicants in the Netherlands who fail to pay back loans always register poor credit scores with the BKR. This will hurt your credit history and hinder you from getting a loan in the future.
When to Apply for a Payday Loan
You need some funds to start or finalize a certain project and don’t mind waiting. You also don’t mind getting the cash from a new entity. You’ll be required to demonstrate your ability to pay back the loan.
For expats, many entities have their websites with English (and other languages) support and provide the funds as long as you meet their requirements.
When to Apply for a Fast Loan
You need a quick financial injection, probably due to an emergency. Fast loans are small in size, high in interest, and have a short repayment term. The loan is only applied when the purpose is urgent and cannot wait for your next income. It’s therefore advisable to borrow responsibly and repay a loan before taking out another one.
A loan is helpful if only you’re able to assume repayments comfortably and within the required time. As you take out the loan, be sure to stay within a healthy level of debt. Ensure you repay a loan before taking out another to avoid over-indebtedness.
About this page, our methodology
What this page is for: we’re here to provide any necessary information regarding consumer credits and the latest news concerning the same.
Source: information about regulation on consumer credits has been drawn from Statista, Dutch Law, and government portals, among other reliable sources.
Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.
About FUNDGECKO: we are an online comparator website that’s designed to help our users have an easy loan application process by comparing the best options in the market and equipping them with the information they need beforehand.
Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.