Do I have to provide a guarantee when taking out a loan?

A loan can easily be closed. Repayment terms are set and the amount of the repayment is often fixed. In financially uncertain times, banks and lenders are more hesitant to issue loans. In order to accommodate you as a customer, financial institutions can ask for a guarantee. In this way they provide more security for themselves. But is a guarantee always a requirement?

A loan with a guarantee

With a guarantee you provide more security at the financial institution where you lend. You provide a financial guarantee with the aid of a guarantee. With many loans, however, you are not obliged to give a guarantee. Nevertheless, your lender may ask for a deposit. This guarantee may then consist of securities or a property. You can think of cash receipts, shares or bonds. These are temporarily put in custody to the lender during the term of the loan. If you as a borrower no longer want or can not repay the money, the lender has the possibility to sell or collect the financial resources from the guarantee. In this way, the lender always has the guarantee of a repayment of the loan, or in the form of money, or in the form of a guarantee.

Loans with a guarantee

One of the most well-known loans with a guarantee is the mortgage loan. This loan can not be closed without a guarantee. When a mortgage is taken out, a guarantee is therefore always mandatory. The mortgage loan gives the bank a lot of security. Your house is seen as collateral. If you are unable to repay the loan on time, the lender becomes the owner of the collateral, so that the loan can still be repaid. The lender then has the opportunity to sell the collateral, in order to be able to repay the loan.

The car loan also requires a guarantee. Car loans often have a lower interest rate than other loans, such as the personal loan. This is because the car loan requires a collateral. To request a car loan, you must prove that you want to use the loan for a car. The agreement usually states that the car serves as collateral (guarantee) for when the installments can not be paid. Because of this type of security interest rates can remain lower and the lender always has a certain form of payment.

What if my loan request was refused?

You have been searching for the perfect car for a long time. You finally found it. Or you would like to remodel the house with perhaps an extension. Such things cost money. Money that you probably do not just have somewhere. After all, large expenses must be saved for a long time. And even then it may be difficult to pay for everything. A loan is then obvious. With the help of a loan you can obtain money quickly without having to save or economise for a long time. Yet not everyone gets a loan just like that. It often happens that a loan application is refused. What should you do then?

The conditions of a loan

Banks and lenders have a number of conditions that must be met in order to apply for a loan. These conditions are the same for virtually all lenders. For example, one must generally be between 18 and 75 years old, one needs a fixed income and one should not have negative BKR quotation on name. When you meet these three requirements, getting a loan is not difficult. However, you may still not be granted a loan, even if you meet the above requirements.

To borrow, you must have sufficient borrowing capacity. After all, banks and lenders have to be able to trust that your financial situation allows the repayment of the loan. If your income is not sufficient or if you already have several loans open, the trust falls away from the banks. You must have a permanent contract so that you can repay every month. Sometimes, however, it may be that one lender is a lot stricter than the other, so you may be able to borrow from someone else. It is certainly not unwise to look around at several lenders. This way you know where you have the best chance of success.

The solution

Standard loans always have a minimum amount that you can borrow. If your loan is too small, you may not be eligible for a loan. You can then, for example, opt for the mini loan. If you want money up to € 500 in the short term, this is a simple solution. However, borrowing a small amount is not always the right solution. For larger amounts you will really have to meet the above conditions. Without fixed income it becomes difficult to apply for a loan.

Why ask so many questions for a loan?

You have decided to take out a loan. It is really not difficult to take out a loan today. You can of course take out a loan from a bank, but it is also possible to borrow money online. The many different loans ensure that you can quickly get extra money. And with this money you can finance your purchases quickly and easily. When you apply for a loan, the lender often wants to know everything. But why all those questions? Can not it be simpler and, above all, faster?


To be able to borrow money, you must meet a number of conditions. The lender wants to be sure that you can actually pay the borrowed money back. One of those conditions is age. Your age plays an important role in borrowing money. For example, you usually have to be between 18 and 75 years old to be able to take out a loan. If you are older, the guarantee that the borrowed money comes back is a lot smaller. The probability that you die is many times greater and the level of income is much lower. In addition, many lenders also have the condition that the loan must be repaid for the 75th year of life.

Fixed income

Income is another essential factor for borrowing money. Without income you can not repay the loan amount. That is why questions are always asked about the level of income and about the source of your income. In this way, the lender has all the information to determine if you can repay the loan. With the help of your income data it can be determined what the maximum loan amount is. Your income must also be fixed and stable. This also includes an AOW benefit and pension.


Many lenders also look at your ASD quotation. All applications for a loan are checked at the ASD. Here you can see whether you have already taken out a loan and whether you have repaid everything on time. In case of a negative listing, it is often not possible to take out a new loan. After all, the chances are that you will not be able to repay this loan on time.

If you have met the above conditions, you can easily borrow money. It is logical that lenders do a check to see if the loan is being repaid.

What about death after taking out a loan?

When you take out a loan, you commit yourself to repay the amount of money in the future. Whether you start repaying immediately or wait a while: the money has to be repaid. You often take out a loan for a longer period. It is probably one of the last things you think about when taking out a loan, but what happens when the insured dies suddenly? Then it may be that the next of kin for the repayment obligation. A small amount can still be coughed up, but when it comes to large amounts, it is of course very annoying. After all, your next of kin often have enough monthly costs. If there is also a high repayment debt, that can cause financial problems.


One of the ways not to saddle your next of kin with your loan is to have the amount scolded. Some providers have their own conditions and will waive certain personal loans or revolving credit in case of death. Often, however, a maximum limit has been set. Cancellation is often only with small loans. For example, you may not have passed over a specific age limit.

Debt balance insurance

Another way to ensure that your relatives do not have to repay your residual debt is through a debt balance insurance policy. This insurance has been specially created to cover the death of an insured person. You take out insurance to ensure that your dependents do not have to pay for your loan. The debt balance insurance is an agreement that you enter into with the insurance company, whereby the insurer pays the balance due to the lender, if you die prematurely. You can have this amount paid in one go, but it is also possible to work with annual premiums. You can also choose to have only part of the debt settled by the insurer. This is possible when you are insured for, for example, half of the loan.

You can also opt for a mixed life insurance policy. The insurer not only pays out if you die, but also ends at the end of the term, even if you are still alive. Actually this is a life insurance policy that also pays out when you die if your loan is still running.

Can I repay my loan early?

You have taken out a loan. Perhaps you needed money quickly to purchase expensive products, such as a washing machine or a holiday. Or maybe you are ready for a new vehicle, but you do not have sufficient cash to buy the vehicle yourself. Also the purchase of a house is often dependent on a loan. These costs can be financed well with the help of a loan. Your repayment is determined based on your income. Not only the terms, but also the amount of the amount to be repaid and the interest you pay on this. But what if you want to pay off your loan sooner?

Pay off a loan early

A loan is usually fixed. The repayment terms are also predetermined. When you are eligible for a loan, the bank or lender will pay you interest on the amount to be repaid. This usually takes place in installments, to make it as attractive as possible for the lender. The longer you do afterwards, the more interest is usually paid. You can also choose to pay back early.

A loan, and in particular a large loan, will commit you for a number of years to the financial institution where you took out the loan. However, it is possible that your personal situation will change, and your financial situation will also change. In case of a financial windfall, for example, or if you want to sell your house before the loan has been fully paid off. You can then choose to pay in advance. An early payment is possible with all financial institutions. It is also possible to pay back part of the capital in one go. This is often at least once a year.

How much does the early repayment cost?

However, an early repayment is not always interesting. After all, there are often costs involved. These costs are often grouped under the name ‘reinvestment fee’. After all, the financial institution loses interest, which you would pay with a normal refund. The fee for early repayment is usually calculated in a fixed way. In addition, document costs are usually settled.

Early repaying your loan is therefore certainly possible. With all financial institutions you can easily repay your loan earlier. In most cases you are more profitable. Nevertheless, it is wise to always check in advance how much you actually win with the early repayment of a loan.

Well € 1,120, – saves on a loan!


Research has shown that many people regret their loans; because of the high interest rates or an income reduction due to job changes. Consumind Finance recently started saving savings on current loans. For example, we helped a client this month to reduce the interest on the current loan and ensured that he repaid the loan 34 months earlier. This has yielded a saving of € 1,120, – !

Lowering interest from loan and repaid earlier

This month we came into contact with a customer. He had a credit of € 10,000 with an interest rate of 8.7%. Of this credit, € 7,000 was still open to repay. With his lender, he had to repay € 100 each month in 91 installments. This means that he still had to pay € 100, – x 91 = € 9,100 for the loan.

Thanks to the help of our expert employee, the customer now pays 5.8% interest to another lender for the loan. Mr. will pay the € 7,000 in 57 installments, by paying € 140 per month. In the new situation he therefore pays 57 x € 140 = € 7,980 for the loan.

The customer has two advantages thanks to this change: he has been relieved of his loan 34 months earlier and pays € 1,120 less for the loan.

Do you have a current credit, personal loan, credit cards or outstanding amounts with mail order companies such as Wehkamp? We would also be happy to help you save on your loans free of charge , so that you have more money left and / or have previously repaid the loan.