If you borrow money, you probably do so by taking out a ‘ personal loan ‘ or a ‘ revolving credit ‘. Do you know the difference between the two products? We are happy to explain it to you.
Know the difference
It is important that you know the differences between a revolving credit and a personal loan. This way you can better assess whether the loan fits your situation and the purpose for which you take out the loan. Also check out ‘Borrowing money; what do you have to pay attention to?’ For more information.
The table below helps you make the choice.
Personal loan |
Revolving credit |
|
For whom |
For people who know what loan amount is needed. They know in advance exactly what the term is and what the total costs of the loan are. | For people who have not yet determined the exact loan amount. They are aware that the total costs and term of the credit may change. |
Interest |
Fixed interest, the interest is fixed for the entire term. This means that the costs are known in advance. | Variable interest rates, interest rates may rise or fall during the term. |
Duration |
Fixed term, which is agreed in advance. You know exactly when the loan has been repaid. | Variable running time. If the interest rate falls, the amount you pay off is larger and therefore you pay off faster. If the interest rate rises, the term will become longer. Even if you withdraw or redeem amounts, this affects the term. |
Monthly amount |
You pay the same amount every month. This consists of part repayment and part interest. | You pay a fixed amount every month. This consists of interest and repayment. The part that you pay monthly for repayment or interest can change. You only pay interest on the amount you have withdrawn. |
Withdraw money |
You can not re-enter repayments once. | You can withdraw repaid amounts. As a result, the term becomes longer, which increases the total cost of the credit. Re-entered amounts must also be repaid. |
Loan amount |
Depending on your need and financial possibilities between € 5,000 and € 60,000. | Depending on your need and financial possibilities between € 5,000 and € 50,000. |
Finishing |
Your loan has been repaid after your predetermined term. The end date is on the contract. | The credit facility of a revolving credit is limited when you turn 65. This is done to ensure that you do not have any debts after your 74th birthday. You can no longer withdraw amounts from the age of 65 and your monthly amount goes up. |
Pay extra for earlier |
Yes, that can be free of charge. | Yes, that can be free of charge. |
Age |
From 21 to 68 years. | From 21 to 64 years. |
Personal loan
A Personal loan is a good choice if you know in advance what your purchase will cost and you only want to finance this purchase. For example a (new) car, a renovation and / or refurbishment, or a big holiday.
Revolving credit
There are a number of wishes on your wish list. You do not know exactly what it will cost, but you know that you do not have enough money. A revolving credit then comes in handy.