Merging loans can be financially beneficial. When regrouping loans, there is now a personal loans and home loan for a renovation into mortgage loans. The lender relies on the client’s objectives of putting forward a specific loan. For those who have taken out multiple loans, merging loans can be financially beneficial.
By merging loans, also known as consolidating loans, the different types of loans end up under one roof. This means that individual debts are at different rates, but you can therefore regroup loans into one debt at a single rate.
Anyone combining loans can agree the rate and the loan period with the lender. For example, it is possible to spread the loan over several months. This makes it possible to relieve the monthly burden. If you opt for a shorter loan period, you will see interest rates rise again. In the first place, it remains important to check whether you can bear the monthly costs.
By combining the various rates at a fixed rate, you keep your financial overview. Make a comparison with your current situation when a lender proposes to merge loans. This is the only way to ensure that the solution offered is also the cheapest.
The maximum annual percentage rate (APR) of a loan is also laid down by law. For loans up to and including 1,250 USD, that percentage may not exceed 18.5 percent. For amounts between 1,250 and 5,000 USD, an APR of 12.5 percent applies. An APR of 10 percent applies to all higher amounts. The APR includes all costs involved with a loan.
Despite the merging of loans, it can happen that consumers still have problems paying back their loans in time. It is to the benefit of both the consumer and the lender that a loan is repaid correctly.
If no solution emerges, the lender can terminate the agreement. In that case, the debtor must still repay the loan in full. The lender can use the guarantee if there is one, or charge extra fees. In addition, the name of the defaulter appears on the blacklist of the Central Office for Credits to Individuals of the NBB. Lenders are required to consult that list if someone wishes to take out a loan.
The name of the defaulter remains on the list for one year, even if he has fulfilled his obligations afterwards. Whoever fails to pay off the loan within one year will see his name on that list for ten years.
Concrete example: The fixed annual cost percentage (APR): 6.99% (fixed annual actuarial lending rate: 6.99%), for an installment loan of $ 7,300 with a term of 42 months. The monthly repayment will be $ 195.72 for a total repayable amount of $ 8,220.24. The fixed annual percentage rate of charge may vary depending on the amount of credit, the duration of the credit contract, the withdrawal modalities or the chosen payment modalities. Installment loan for private individuals, subject to acceptance of your file and mutual agreement. Interest rates and product conditions change regularly. Because reliable comparisons are only possible on the basis of current data, the product information (such as interest data) that we provide is often updated daily, or as often as necessary. Mad HatterMad Hatter.be is neither a credit broker nor a lender.