From the earliest stages of the payday loan application, the most common question is the amount of credit. Whether you plan to use this fund for your personal projects or make a reserve of money, know that the payday loan is governed by the code of consumption. Thus, Belgian banks will grant you a loan with a minimum value of 2,500 euros and a maximum amount of 75,000 euros. But when you talk to credit organizations, you can hope for better by focusing on a stable financial situation.
Payday loan, a form of commitment
Even if it is tempting to borrow an exorbitant sum to fulfill your wildest dreams, remember that the payday loan commits you to repay the principal that is granted to you in monthly installments. What’s more, you will have to pay interest. Before you decide, take the time to properly assess your needs and ask for only the amount you are missing. By doing so, you avoid a situation of over-indebtedness.
On average, the annual percentage rate of charge (APR) applied in Belgium represents between 5.7% and 15.5% of the total value of the capital borrowed. To find the best offers, take the time to compare the different formulas offered by the banks, and decide only when you have found the one that best fits your needs and your repayment capabilities.
Criteria to be met for granting a payday loan
The payday loan is by far the most simplified consumer credit formula. It is granted by the financial institution to an individual who requires financing for his personal projects, without any justification being requested.
But before you grant this loan, the bank will analyze your file and check if your ability to repay allows you. To attract the favor of the bank, do yourself the calculation of your expenses, your monthly expenses and your income to have your debt ratio. Moreover, you will know the amount of your “rest to live”, this sum which indicates your standard of living, and which will be obtained after having removed your fixed charges which are the rent and the daily expenses like food, the invoices energy, child rearing and transportation costs.
Another important point, your professional situation will help tip the balance and attract you to the bank that will grant you the payday loan. When filling in your application form, do not hesitate to confirm that you are working well on a permanent contract, that you have many years of seniority within your company. And if your spouse has more advantages than you, do not hesitate to send the application on his behalf.
Payday loan: what about loans in progress?
Always to get your debt ratio, this main element that will be used to calculate the amount you can borrow, you must take into account all the monthly payments that you must already pay for your other current credits: home loan, car loan, travel loan, etc. For your convenience, use an online credit comparator, this free calculator that helps you, without any commitment on your part. Moreover, it is always advisable to make comparisons between the many organizations that offer the payday loan to have a precise idea on the rates applied for the same amount of agent that you will repay over the same period.
In spite of your current loans, show your bank that you can manage your account well and still save money. So, make sure your balance is always in the green at the end of each month. What’s more, the credit application is a responsible act, so avoid unexpected steps and urgent requests, because you may doubt your banker who will grant you a credit without asking for proof of use.
Following the payday loan simulation and payday loan search, you have finally chosen the bank that will grant you the requested amount. After the answer in principle, you will have to conclude a contract with the institution, while you will receive the loan in the form of a single payment to your current bank account. And according to the schedule, you will have to insure the repayments, with fixed monthly payment rates over the whole duration of the payday loan. But in any case, borrow smartly by asking only the amount you really need, specifying the project you will finance to better convince your bank.