How to get a loan in the Netherlands

If you live in the Netherlands as an expat and receive an income, you are able to borrow money. However, there are conditions that you must meet. This article will explain how you can apply for a loan in the Netherlands and what the requirements are.

Requirements for expats when applying for a loan

The requirements for applying for a loan differ from lender to lender. However, you always need to have Dutch residency and an income from the Netherlands. Here are additional requirements most lenders will ask for:

• Certainty: Lenders want the security of knowing you will stay in the Netherlands while you are paying off the loan. They will consider factors such as the duration of your work contract, family situation, residential status, and how long you have been working and living in the Netherlands.
• Legal residency: As an expat, you must demonstrate legal residency in the Netherlands. Lenders will usually ask to see proof of residency.
• Dutch bank account: Your income must be paid into a Dutch bank account. This is a requirement for most lenders.
• Positive BKR registration: Lenders in the Netherlands often assess your creditworthiness through an institution called the Bureau Krediet Registratie (BKR). Having a positive BKR registration means that you have a history of paying off loans on time. Showing this to a lender will increase your chance of getting a loan approved. Without a BKR history, a lender cannot judge your creditworthiness. You need to maintain a positive BKR registration for at least a few years.

It is important to truthfully fill in your information when applying for a loan. Lenders will conduct a thorough check with the BKR to verify all the documents are correct. When borrowing money as an expat, the usual conditions that apply to loan applications are also relevant. The lender evaluates your income, current debts, monthly expenses, and the amount you wish to borrow. Based on this assessment, the lender determines the maximum amount you can responsibly borrow.

How do you apply for a loan as an expat?

Applying for a loan as an expat involves the following steps:

• Determine your loan amount: First, determine what you are borrowing for and how much money you need for it. Then, calculate the maximum amount of money you can borrow responsibly. Avoid borrowing more money than you need to prevent difficulties in repaying the loan later.
• Compare loans: Interest rates can vary significantly between lenders. The difference between the cheapest and most expensive loans can easily amount to hundreds of euros per year. Therefore, it's advisable to compare loans on reputable online platforms, such as Geld.nl, to find the one suitable for your situation and choose the one with the lowest interest rate. You can then request this directly online.
• Sign the offer: If your loan application is provisionally approved, you will receive a quote from the lender. Read this carefully to ensure you agree with all the conditions. Then, sign the quotation and send it back, along with the documents required by the lender. This usually includes a copy of your ID, a pay slip, and sometimes a contract from your employer. If everything is in order, you will receive your loan in your bank account within a few days.

By following these guidelines and ensuring you meet the requirements, expats can navigate the process of applying for a personal loan Netherlands more smoothly and effectively.