Loan applications are becoming increasingly common to create financial space: ‘But then you won’t get it’ | Money

Most applications were made last year for the purchase of a car (38 percent), but more than a quarter (27 percent) of the applications are for creating financial space. This is a new development: a year earlier this applied to 10 percent of applications. The desired amount for this also increased: from 10,150 euros to 11,500 euros now.

An application on the comparison site – there were tens of thousands in recent years – does not mean that people will also receive the loans, emphasizes Guido Rodenburg, loan expert at Independer. “These people have difficulty making ends meet and look for a loan on our site. Fortunately, if you are unable to meet your financial obligations, you will not get a loan.” You pay between 6 and 10 percent interest on loans, depending on the term and the amount. The higher the loan amount, the lower the interest. In other words: borrowing costs money.

Lenders have been using this since the beginning of September new lending standards. The tightened lending standards should protect customers against debts they cannot pay. Many prices have risen in recent months, making living more expensive. Banks now include these increased costs in the maximum loan amount. “The lending standards are often adjusted once a year by Nibud,” says Rodenburg.

To determine how much someone can borrow, lenders look at how much money you have left after deducting fixed costs and estimated living costs. Rodenburg: “Do you have a car? How high are your fixed costs? Do you have children? This will all be taken into account when assessing your application. Just like the loan purpose. A lender wants to know what you use the money for. Buy an old car that will last four years? Then a loan with a term of 10 years is not wise.”

“Due to inflation, the cost of living has risen and lenders must therefore take this into account,” Amanda Bulthuis, money & insurance expert at Geld.nl, previously told this site. “For consumers, this means that a higher amount is deducted from their income and they can therefore borrow less.” The website of budget advisor Nibud contains a ‘Lending Risk Meter’. This allows you to calculate the influence of a loan on your financial situation.

An average of 15,718 euros was requested for a car last year. “That money will be desperately needed for a new car, as they have become considerably more expensive recently, due to higher labor costs and more expensive raw materials,” said Rodenburg. In addition, many requests are made for renovating a home (15 percent). “That is a trend that you always see: when mortgage rates rise, people are less likely to move, but they want to improve their home.”

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