Regulation Personal loan and consumer credit in Belgium

The personal loan is the ideal financing solution for the realization of personal projects. Indeed, you can freely spend the unblocked funds and you have several months to repay everything gradually with fixed interest.

However, subscribing to a credit must be a well thought out act, because you agree to return the amount borrowed, with its fees and interest. For its part, the lender is obliged to enforce the law, including the regulations relating to the protection of borrowers, as well as correct and transparent information for a loan well suited to their demands and their financial situations. Everything you need to know about consumer protection in the process of subscribing to a personal loan.

Subscribe to a personal loan: the right to information

Subscribe to a personal loan: the right to information

The code of consumption requires credit agencies to always check the repayment capacity of individuals looking for a personal loan offer. For this reason, you must answer a series of questions about your income and current expenses when you complete a personal credit application. Then, the lender will check the status of your current loans and possible worries of unpaid at the central credit to individuals of the National Bank of Belgium. Then, the lender must make an assessment of your financial situation and suggest the amount and type of credit that suits you best.

Available free of charge on each credit offer, the information sheet addressed to the borrower must indicate referential data that will enable him to compare several proposals from the lending institutions. These include the loan amount, the annual percentage rate of charge (APR), the cost of a monthly payment and the total interest. What is done on pret-simulation.be, our personal loan comparator that gives you an overview of the offers of Belgian credit institutions after a simulation based on your own research, ie the amount you want to borrow and the duration of the credit. Once you have found the most advantageous formula, you will be directly redirected to the website of the credit agency of your choice to apply online for personal loan, get a policy answer and possibly a credit agreement.

Personal Loan Offers: Regulated Ads

Personal Loan Offers: Regulated Ads

For your protection, advertisements from credit institutions should never force you to take out loans. Thus, personal loan offers can not imply that a credit is free, fast and easy to obtain. Canvassing at home or at your place of work is also prohibited unless you have previously made a written request for a credit agreement. Moreover, the law stipulates that advertising must not attract a consumer to take out a loan when he already has problems with unpaid bills, while offers which claim that the credits in progress will not be evaluated in a new one. loan application are prohibited.

Any personal loan advertisement must include information about the identity and address of the advertiser, the form of the credit concerned and the conditions for granting the loan. As for the figures that must appear on a personal loan proposal, you have inter alia the annual percentage rate of charge (APR), the borrowing rate, the amount of credit, the duration of the credit, as well as an example showing in detail the costs related to credit. And if no figure referring to fees or interest is indicated, the advertisement must indicate the following statements “Attention, to borrow also costs money”. For credits at 0% APR, it is forbidden to indicate that it is a “free credit”, while the benefits for the consumers who pay in cash must be highlighted.

Privacy and subscription to a personal loan

Privacy and subscription to a personal loan

When you subscribe to a personal loan, you will provide the bank of your choice with a series of personal data. This information will be exploited by your lender who must evaluate your financial situation and your repayment capabilities. What’s more, you have the right to make changes or corrections. To do this, simply send a written request to the person who deals with your personal credit application. But rest assured, there are standards for the security of personal data applied by financial institutions and you have nothing to fear, including risks of hacking on banks online that continue to improve the security of their site.

Personal loan agreement: the withdrawal period

Personal loan agreement: the withdrawal period

Even if you have already signed the personal loan agreement, you still have a statutory 14-day cooling-off period to reverse your decision. If you take advantage of this period to cancel the credit agreement, you must send a registered letter to the lender, without having to pay a cancellation fee. However, you will have to return the loan money or the goods purchased with this credit, and pay the interest applied during the period when the unblocked funds were available to you.

 

Before you apply for a personal loan, remember that no credit institution should put you under pressure to take out a loan. You act freely and have the habit of weighing the pros and cons before making a decision that will commit you to a definite period. And above all, use our personal loan comparator to compete with Belgian credit institutions and choose only the offer that seems most advantageous compared to the annual percentage rate, the amount of a monthly payment and the total interest. If you have any questions, do not hesitate to ask your banker and online banking advisors to be fully aware of the causes when you decide to take out a personal loan.