What is a Social Loan?
A social loan is a special credit specifically intended for people with a low income and considerable debts. If you have several loans outstanding and are no longer able to cope with your financial problems on your own, you may be eligible for a social loan.
You can turn to your MC Bank for this. This government institution can grant you a one-off credit that allows you to pay off all your aggregate debts. Because you pay a low interest rate and know exactly what your monthly charges are, you should be able to pay off your debts in a maximum of five years.
What are the conditions for a social loan?
Strict conditions apply to the social loan. For example, you must be at least 18 years old, have Dutch nationality and be in a problematic financial position. This means that you have substantial debts and an income that is lower or equal to 130% of the minimum wage.
Naturally you also have a negative credit registration with the BKR in Tiel. People aged 65 or over who can no longer pay their debts are also eligible for the social loan. Do you have a higher income, but are your debts so high that paying off without credit is no longer possible? Then you might also be able to use the social loan.
Only for necessary expenses
In most cases you can use a loan amount for whatever you want. Once your loan has been approved, you are free to spend the money at your own discretion. It doesn’t matter to the lender whether you buy a new washing machine for it or give it a nice party.
As long as you pay your repayments on time. With a social loan it is different. The one-off credit is exclusively intended for necessary expenses. For example, for matters that have to do with your well-being or the care for you and your family. Or for paying off your debts, so that you have the prospect of a problem-free financial future.
Apply for a social loan
You can apply for a social loan from the MC Bank. It is based in major cities and / or operates in certain regions. In most cases you can apply online. After you have entered your details, the credit bank will assess whether you are eligible for a social loan.
If that is indeed the case, you will be notified within a few weeks. This is followed by an intake interview, in which you are expected to submit all relevant documents regarding your financial situation. Based on this, the credit bank determines whether a social loan is the solution for you to get rid of your debts.
Make sure you pay off on time
Just like with normal credit, it is very important that you pay off your social loan as agreed. If you miss a payment term, you can count on additional costs. In the event of a delay of two months or more, the loan will even become immediately payable.
This has major consequences for your financial situation and you will certainly want to avoid it. If for any reason you are unable to meet your obligations, please contact the credit bank immediately. This also applies when something changes in your personal situation. This can affect the terms of your loan.
In addition to the fact that you pay a very low interest rate for the social loan and can get rid of all your debts in one go, this credit also has a big advantage. During the term of the loan you will be guided by a professional debt counse
lor, who will teach you how to handle a budget and thus prevent new debts. For people with a low income and considerable debt problems, the social loan can therefore be seen as a last resort and as a chance for a healthy financial future.