Loans in Belgium

Loans in Belgium explained

Belgium is often regarded as one of the costliest countries in continental Europe. Most of the time, it is seen that people who travel to the nation have difficulty in finding a loan for their expenses.

However, not many of us know that understanding money matters in Belgium can be slightly tricky as an expat. From opening a bank account to finding a loan, it is essential to know which of the options are right for you. So, let us now check out the common types of loans in Belgium.

Loans in Belgium overview

Go directly to:
  1. Loan providers
  2. Choosing a loan
  3. FAQ about loans in Belgium

Loan providers in Belgium

So, what are the best loan providers in Belgium and which of them offers the best terms and conditions? We have listed below the most frequently used providers in Belgium.

Be aware that Borrowing money costs money

Good TermsLow Interest rate
KBC
Santander
Mozzeno✘ 
Cofidis
Medirect✘ 
Finday

Why choose for a loan in Belgium

If you are an expat in Belgium getting grips with the loan system, it can be tricky for everyone to understand. This is because the entire thing is slightly challenging and not an easy feat to master.

Economists also suggest that, while loans in Belgium are relatively cheap, the climate of low-interest rates is soon to change. Not many of us know this, but Belgium has a highly fabulous banking landscape and one of the leading financial centers in Europe.

Along with the country has also mastered digital banking payments and mobile banking systems. Now let us see what the different types of loans that can be secured in Belgium are.

1. Personal Loan:
A personal loan is a type of loan borrowed for individual needs and not for business expenses. It is a sum of money that is taken for accomplishing personal needs. The reasons for borrowing a personal loan can be many and range from a new vehicle, study expenses and home loans.

Almost all personal loans work on promissory notes, which means the borrower, has to pay back the amount in a stipulated time.

2. Student Loan Belgium
As the name suggests, a student loan is a sum of money used by aspirants who would like to move their career forward. Not every young blood out there is born with a silver spoon. There are many for whom money becomes a significant hurdle for their dreams.

This is here where student loans come into the picture. The particular sum of money helps you manage college costs, including fees, daily expenses, and tuition fees. Belgium is often regarded as one of the countries which offer the best loans for students.

3. Car Loan Belgium
Car loans are the types of loans that are provided to the customers for purchasing a new car. In Belgium, even the used cars are financed with the help of unsecured loans. However, if you are up for buying a new car, then it can be done with the help of secured loans.

When you try to look for options in Belgium for car loans, there are many to take note of. Financial institutions like Beobank, CBC Banque, KBC Bank, Bpost Bank, and Cetelum offer car loans at a reasonable interest rate. Another plus point of these institutes is that they help settle the amount in 2 years, which resonates with the users.

4. Bank Loans in Belgium
Bank loans in Belgium are bifurcated into two categories, namely unsecured and secured loans. The fundamental difference between these two is that unsecured consumer loans are not backed by collateral and have a higher interest rate.

There are in total over 12 banks in Belgium that offer bank loans to consumers. The borrowing rates vary between 3.49%-12.50%, and the loan terms are between 6-120 months.

5. Home Loan Belgium
Home Loans or mortgages are one of the most common types of loans that people borrow from financial institutes. One thing to know is that there are no restrictions on ex-pats regarding buying properties in Belgium.

However, things have taken a pretty severe turn since the financial crash. Now mortgages have in Belgium come with a fixed interest rate. Some banks across the country also offer 85% loan-to-value. Getting a home loan in Belgium is not too difficult, but finding the best deal to crack can be slightly tricky.

Some of the significant financial institutions that provide mortgages in Belgium are:

  • ING Belgium
  • KBC

FAQ about loans in Belgium

The overall amount of the loan borrowed by an individual depends on the financial circumstances he/she is in. For example, if you have a poor or limited credit history, you cannot borrow a higher amount.

Today different types of loans have different types of requirements; for example, if you qualify for a loan or not depend on your details and financial score. Also, you can compare the loans on the net and answer a few questions and check the interest rate before the bank accepts your application.

Loans are usually applied for several reasons. These can range from home improvements, buying a car, or getting hands-on a desirable property.

A secured loan is something that is tied to the asset you possess as security. The best example of a secured loan is a mortgage taken for buying the house.

On the other hand, an unsecured loan is the one that is given to the consumers if they have a fair credit score.