Payday loans are popular in Netherlands and Slovenia alike. Payday loans are important for the Nederlanders because it helps them boost money for their monthly expenditure. The loans are also quick and convenient to access. The payday loans are usually paid on a short term. Basically, they are usually given for just 30 days. The loans can help one to sort out emergencies such as insurance payments, internet subscriptions, kitchen repairs, or others.
Understanding Payday Loans in the Netherlands
For records, payday loans are at their peak in the Netherlands. Despite the few drawbacks, it still stands out as the most convenient solution for managing a budget for many. In addition, it is the best place to get money when you do not have friends or families to borrow from. As opposed to bank loans which can be repaid within 12 months or more, payday loans are short-term since they are due within a short duration until your next paycheck. Although they are instant money, the high-interest charges plus penalty fees (for late repayment) should be expected.
Even though the lenders limit the amount to borrow, the little works best to solve the money problem immediately. The excellent news with a payday loan is they do not need any personal assets for security like the one for banks. Despite your bad credit history, you can undoubtedly get a payday loan in the Netherlands. Similarly, the fundamental condition you must fulfill is to have a regular and stable income. With that, your lender is at peace that you are capable of repaying the loan.
Circumstances that Push Dutch into Payday Loans
There are many lending options from banks, friends, and other financial institutions. Nevertheless, many people prefer payday loans to other possibilities. These are some of the reasons.
Urgency for Money
Your bank is always willing to lend you money at reasonable interest charges, but the loan will take longer to mature. Moreover, it might take months for the bank to approve your loan. For prolonged approval, money to solve emergencies like medical bills would probably mean death to the debtor. Therefore, payday loans are perfect for immediate use on urgent matters as you can get the loan within 15 minutes or a maximum of one day.
However much they need money, some people cannot come to terms with borrowing from friends and relatives. Besides, things might get awry in the middle of everything; your little secret of borrowing will be in the public domain right then. Thus, it would be best to lend at payday loans, where it is you, your income, and the lender. No one will know that you have borrowed money from there since it is private and no guarantor is needed.
Poor Credit History
You know that banks cannot approve your loan after finding out about your bad credit history. Unfortunately, that does not necessarily mean your problem with money will vanish. Therefore, you will opt for another option, which is a payday loan. Besides, payday lenders are only interested in your ability to repay through proof of a steady monthly income like a pay stub. Most of them in the Netherlands do not care whether you have a good credit history or not.
Need to Repay An Existing Debt
Depending on the agreement you had with your initial lender, failure to repay might be costly. In such cases, you can easily avoid penalty fees for late repayment by taking another loan from a payday lender. Even though this is a wrong move, which calls for a debt cycle, sometimes it is the only option out of the fix. It is the best way of avoiding a high penalty as you will have about 30 days to think about how to repay the loan.
Requirements for Payday Loan Application in the Netherlands
If you need a payday loan in the Netherlands, it is crucial to have a legal age of 18 years and above. To prove your age, a valid identification card is compulsory. Furthermore, in the Netherlands, it is lawfully chargeable to give loans to underage. Another condition is a regular and steady income. Your lender can also ascertain your capability to repay if you are a regular earner.
Similarly, you must give your phone contact and email address. You should know that all communication regarding the loan application process and approval is via calls or emails. It is only wise to give a working phone number and email. Moreover, you must be a legal resident of the Netherlands. However, it is crucial for ex-pats outside the EU to have a permanent residence permit because without a contact address, whoops! That is a dead end.
Additionally, you must have a Dutch bank account. The lender will preferably ask for your Dutch bank account, where you receive your monthly income. Through the bank account, the lender will directly access your bank status to check if you are eligible for the loan. In the Netherlands, no lender is willing to give a loan to a bankrupt borrower. Besides, the Dutch lenders insist that you transfer to their own provided account in case you have a foreign account. Also, it is only through a bank account that the lender can send you money after loan approval.
The Advantages of Payday Loans in the Netherlands
The first main advantage of payday loans is that there is no credit check. These lenders do not usually check one’s credit reports. Therefore, if you have a bad credit history, you don’t have to worry because you can still get a loan. The main things that are needed include proof of income and ID.
Secondly, as compared to traditional financial services, payday loans have fewer requirements. When you check the process of lending from a payday lender, it is not that tedious. This is because there are few requirements. Besides, the approval process is fast.
Furthermore, you can use the loan on anything that you need. They will not ask you what you need the loan for as the banks do. Payday loan lenders give consumers the opportunity of spending their money the way they want. There are no limitations.
The processing of payday loans is so fast. Traditional loans normally take a lot of time to be processed as well as verified. Nevertheless, it is a different case when it comes to online payday loans. Most payday loans, take less than a day to get the money in your account. Some even take less than 5 minutes especially if you are a frequent customer. This is because the loans are designed for emergency purposes.
Payday lenders in the Netherlands
Although the list is long, here are a few to check.
- OPR Bedrijfskrediet
- Frisia financieringen
- BE Persoonlijke Lening
- BridgeFund – Zakelijk lenen zonder gedoe