How to get a personal loan in the Netherlands as a foreigner
It is hard to move out to a different country, be it temporarily or to restart your life. But it’s even harder to arrange for financial support. So, if you need a personal loan while you are in the Netherlands, is it easier to apply? What are the basic procedures? What kind of documents should you have? You might have hundreds of other questions but fret not. We have got you covered. Here is a complete guide on how to obtain a personal loan in the Netherlands. Visit our personal loan calulator to get a direct idea of the costs / repayments.
Be aware that borrowing money costs money
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#1 -The best loan provider
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Santander in the Netherlands stands out as an good loan provider for expats. With the assurance of receiving the necessary funds upfront and clear, predictable monthly payments, expats can budget with confidence. The fixed interest rate, immune to market fluctuations, and the potential tax deductions for home renovations make Santander a reliable and advantageous choice for expats seeking financial stability and flexibility. What makes Santander stands out is their easy application process. |
8.0
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Visist Santander.nl |
#2
For expats in the Netherlands, ING offers a versatile loan solution with the advantage of an English website. You can access the desired amount in one lump sum and have the flexibility to choose between €2,500 and €75,000. Tailor your loan duration from 6 to 120 months, with shorter terms resulting in lower overall costs. ING offers a variable rate based on factors like your borrowing purpose, amount, home ownership, and risk profile. For specific purposes such as car purchases and renovations, a lower interest rate applies. |
For expats in the Netherlands, ING offers a versatile loan solution with the advantage of an English website. You can access the desired amount in one lump sum and have the flexibility to choose between €2,500 and €75,000. Tailor your loan duration from 6 to 120 months, with shorter terms resulting in lower overall costs. ING offers a variable rate based on factors like your borrowing purpose, amount, home ownership, and risk profile. For specific purposes such as car purchases and renovations, a lower interest rate applies. |
7.5
| Visist ING.nl |
#3
Saldodipje, a distinctive loan provider, eliminates the hassle of complex contracts and intricate procedures. With a history of serving over 2 million satisfied customers worldwide, Saldodipje’s proven track record and global reach offer expats a sense of trust and reliability. Expat borrowers appreciate the simplicity and efficiency in acquiring a loan. One key differentiator is the rapid funding process, with approved loans typically disbursed within 24 hours. |
Saldodipje, a distinctive loan provider, eliminates the hassle of complex contracts and intricate procedures. With a history of serving over 2 million satisfied customers worldwide, Saldodipje’s proven track record and global reach offer expats a sense of trust and reliability. Expat borrowers appreciate the simplicity and efficiency in acquiring a loan. One key differentiator is the rapid funding process, with approved loans typically disbursed within 24 hours. |
7.4
| Visist Saldodipje.nl |
Eligibility for personal, home and car loans in the Netherlands
The eligibility criteria for each kind of loan largely differ. To begin with, we will look at three different loan types, whether a foreigner can qualify for the loan types and, if so, what the procedures are. Personal loans can be obtained by foreigners living in the Netherlands if they have a Dutch residence permit. In the case of car loans, several renowned banks and companies provide the amount based on employment history and good credit scores. When it comes to home loans, many banks and even private lenders give mortgage loans to outsiders based on a few crucial documents.
Eligibility for personal, home and car loans in the Netherlands
The eligibility criteria for each kind of loan largely differ. To begin with, we will look at three different loan types, whether a foreigner can qualify for the loan types and, if so, what the procedures are. Personal loans can be obtained by foreigners living in the Netherlands if they have a Dutch residence permit. In the case of car loans, several renowned banks and companies provide the amount based on employment history and good credit scores. When it comes to home loans, many banks and even private lenders give mortgage loans to outsiders based on a few crucial documents.
Other eligibility criteria for personal loans for outsiders
Basic requirements
- Residency in the Netherlands
- A job / regular salary in the Netherlands (can be either permanent or temporary contract)
- Should be 18 years or older
- The loan you avail must be repaid before you turn 81
- Have a good credit score
- Sustainability of the income, details about other loans and major expenses
If you are a citizen of the European Union (EU) or the European Economic Area (EEA) countries, you will have better chances of getting a personal loan in the Netherlands, when compared to the other foreigners. For others, a permanent residence permit might be required. Besides these factors, if you have a good credit history, it goes a long way in helping you obtain the loan or mortgage.
How and why to use the loan calculator
A loan calculator helps you determine the personal loan cost and the monthly repayments you need to make. You can also do a reverse procedure and find out how much loan you can borrow based on the monthly repayments you can afford.
PS: the details reflected may not be the exact offers provided by banks and lenders, but the information will be closer to accuracy and help you calculate beforehand.
Personal Loans in the Netherlands
A personal loan is a type of borrowing where you can get a certain money from the lender and repay it over an agreed term, along with a fixed interest. These are usually repaid monthly. You can avail personal loans from both banks and private lenders. This is one of the most common ways of lending, and it can be used for any purpose.
Some of the main features of personal loans in the Netherlands are details such as the loan amount being paid out fully at once, and you can repay it with a fixed amount every month. Other characteristics include:
- Interest is fixed
- Early repayment is possible, penalty is applicable in certain circumstances
- Usually, the personal loan amount can’t be increased while the loan is in process.
- If an additional amount is needed, one can apply for a new loan.
- The repayment period is between 12-180 months.
Interest rates for personal loans
The interest rate is highly dependent on the loan provider. Besides the amount borrowed, the duration of the term also influences the rate of interest. The higher the loan, the lesser the interest.
Benefits of a personal loan
No restrictive use – Personal loans do not come with the restrictions that house and car loans do. Here, you can use the money for whatever reason you need, be it for a car or a wedding.
Fixed interests – The interest rates are fixed ones for personal loans in most cases. You also repay only a fixed amount, which helps you plan properly.
Flexible terms – The terms, be it the period or the amount are entirely in your control. The flexibility helps you choose the amount you need and one within your budget.
Quick – The process isn’t rigid. If you have the right documents and a good credit score, you can apply and get the loan sanctioned quite quickly, sometimes within just a few days.
Tips to get the best personal loan in the Netherlands
- It is important to have an eye on your credit score before applying for a loan, and this is not specific to the Netherlands. A proper credit score is a universal requisite.
- Be it banks, firms or private lenders, do proper research and find the interest rate and other details before choosing the lender.
- To find the perfect loan, always check several options and compare factors like interest rates, operation cost, security, loan amount, loan period, etc.
Final Thoughts
Like in any place, the longer you have been in the Netherlands, the higher the chances of obtaining personal loans. That said, the most important types of loans, like even car and home loans, are available for foreigners as well. If you are eligible to obtain a loan, it is always advisable to cross-check the loan amount and term length and compare different loan offers before you choose one. If you compare many offers before signing a contract, it will help you in getting the best loan deal.