Do you need money at the moment, or are you looking for a loan for the long term?

 Borrow money: which loan forms are there?

The moment you want to borrow money, it is of course important to first be well aware of the various forms of lending you can choose from. Each of these forms of lending is interesting for one or more specific financing needs. For example, if you need money in the short term (for example within a few days), a mini loan will appeal to you more than, for example, a personal loan. For long-term financing, however, you can nevertheless prefer a mortgage loan or revolving credit. Below we will briefly explain each of the loan forms. You can also consult the special information pages to obtain more information about a loan form.


A mini loan (also called ‘mini credit’) is ideal for people who need money in the short term. Do you, for example, need a sum of money within a few days or even a number of hours? Then a mini loan can in most cases offer a solution for borrowing money. The mini loan is characterized by fast delivery, fast repayment and a high interest rate. With most lenders you must repay the loan within 15 or 30 days. In addition, the interest rate is often quite high, on average around 7% to 10% per month.

To borrow up to a maximum amount of + – € 600

Mini-loans are often used to bridge the period between an expense and income, for example if the pay-out of your wage is delayed. A mini loan can be concluded with an amount of approximately € 600 for most lenders. In addition, most lenders (who are often located abroad) often do not take too much account of the AFM’s rules. For example, most providers of mini-loans do not carry out BKR checks for (new) customers. Customers are therefore not assessed on creditworthiness, which can ultimately be a risk for the borrower. 

Personal loan

The personal loan is the best known loan form for borrowing money. The personal loan is ideal for people who know in advance how much money they want to borrow. With a personal loan it is therefore not possible to increase or reduce the loan amount in the meantime, for which a new loan must be taken out. The repayment and payment of the interest for the loan is done according to fixed guidelines, it also gives you certainty over a longer period.

Duration of 1 to 2 years

The term of a personal loan is usually about 1 to 2 years, depending on your personal wishes you can often discuss with the lender what is the best option for you. The personal loan is often closed for buying a car, therefore it is also sometimes called a car loan. You can of course also use the personal loan to finance household electronics, such as a new washing machine.

Low interest rate, fixed percentage

The interest on a personal loan is considerably lower than for example with a mini loan, which is why this is also an advantageous way of borrowing money. The main reason for this is that a personal loan can only be taken out with a reliable lender, which also assesses in advance whether you can actually actually repay the amount (BKR check). In the Netherlands there is therefore no (with the AFM) lender who does not perform BKR checks when providing a personal loan.

Features of the personal loan

The personal loan is characterized by a fixed interest rate over the entire period. The amount of repayment is also fixed in advance in a contract. Finally, the personal loan is characterized by the (relatively) long term. Amounts that you pay off at the personal loan can not be withdrawn prematurely, in contrast to a revolving credit. 

Revolving credit

The ongoing credit is becoming increasingly popular for borrowing money. The revolving credit is a flexible form of loan, where you can withdraw repaid amounts later. You only pay the interest on the amount that you have actually included in the revolving credit. The revolving credit is regularly used to finance renovations, in which it is not yet clear what the final loan amount will be.

Continuous credit as a start-up loan

The revolving credit is also often used as a ‘start-up loan’, because often large expenses have to be made during this period. The ongoing credit ensures that you have money at hand at all times. When a credit is taken out, the lender will always carry out a BKR check. In addition, your creditworthiness will be checked with payslips.

Characteristics of the revolving credit

The revolving credit is characterized by a (relatively) long term, usually of a few years. In addition, the level of interest on the loan is also variable during the term. With the revolving credit, borrowers have the choice when they redeem. Of course, it is advantageous for the borrower to repay borrowed amounts as quickly as possible, because only interest has to be paid on amounts withdrawn from this method of borrowing money. You are required to pay the interest you owe each month, but you are not obliged to pay off each month. 

Mortgage loan

The mortgage loan is pre-eminently the best form of loan for financing real estate. When you take out a mortgage loan (often also called ‘mortgage’) you give the lender an extra security, because you give your property as ‘collateral’. By doing so, you give the mortgage lender the opportunity to sell the property in case of non-payment on your part. Calculating your mortgage is one of the most important steps in taking out a mortgage loan. Finally, you can then see for which amount you can take out a loan and under what conditions.

Period of 30 low, flexible interest rates

The mortgage loan is the longest loan form we have in the Netherlands. On average, this loan is taken out for a period of 30 years. You can choose to fix the interest rate for a long period so that you know for sure what amount of interest you will pay over the period. Depending on your mortgage type, an amount must also be paid monthly. Almost everyone who buys a house in the Netherlands chooses to take out a mortgage loan. The interest that you have to pay on this loan can be deducted from your income by means of the ‘mortgage interest deduction’ scheme of the tax authorities. This means that you do not have to pay less tax. The moment you sell your property, you can repay your mortgage at the lender in one go.

Take out a mortgage loan

Taking out a mortgage loan is a lengthy process, which involves various discussions with mortgage advisors and an extensive credit assessment.

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