Compare the loans that are available to you. Borrowing money as a private individual does not have to be expensive, you just have to make a good comparison. And know where you can best do this.
As a private individual you can easily go to your bank, but that is often expensive. The banks are known to ask for higher interest rates than other providers on the market. If you opt for a loan from your own bank, then you mainly opt for the convenience of a bank for all your banking matters. You do not necessarily opt for a cheap loan.
For a cheaper loan you better go to the price fighters. These are often other brands that use the same banks. The following brand names are well-known price fighters. With these providers you can often get loans with a lower interest rate than with the bank. These following providers can help you with this, they offer multiple quotes through different banks and providers.
To properly compare loans you look not only at the interest rate, but also at the type of loan. You can usually choose from a form of a maturing loan (personal loan) or a revolving loan (revolving credit).
A revolving credit often has a lower interest rate, but this type of loan does invite you to borrow more than you need. You can borrow unlimited up to the agreed limit. There is no fixed repayment schedule and you often only have to repay a certain minimum amount.
With a revolving credit you can borrow more money than you need without many problems. Moreover, you do not even have to withdraw all the money from your loan. The latter is a big advantage. For example, you can take out a loan of 5,000 euros with a lower interest rate, and you can only take out 2,500 euros. You will then be cheaper than if you take out a loan for 2,500 euros.
A personal loan often has a higher interest rate. But because you agree on a fixed amount with fixed repayments, you can be cheaper. This is because many people with a personal loan ultimately borrow less money than with a revolving credit. Also, repayment is often faster (due to the fixed schedule) and you end up spending less money on interest.
Borrow money from individuals
Apart from the banks and the price fighters, you can also go to special private platforms for a loan. Here you can apply for a loan that is financed by private lenders. The platforms register your loan, approve it and collect the money for you.
Repaying your loan is just the same as with a bank, you simply repay a fixed amount each month. This money is then returned to the account of the private lenders. They therefore invest in your loan. In these cases you can only apply for a personal loan.
A well-known of these types of platforms is Sendico. They have been around in the Netherlands for a few years and have arranged quite a few loans for private individuals in the Netherlands. This platform also exists in other countries, such as Germany. There it is a lot bigger and more famous than here. But there are also other platforms in the Netherlands.