Borrow with benefits To determine whether to provide someone with a loan, lenders look at several factors . A very important factor is income. The following applies: the more certain the income, the greater the chance that the lender will get his money back. So people with a stable income are more likely to receive a loan than people with an uncertain income. According to lenders, a benefit provides less certainty about income than, for example, permanent employment (depending on the type of benefit). That is why borrowing with a benefit is not possible with every lender.
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Borrowing depending on the type of benefit A benefit that remains in effect for a long time or even permanently provides a lot of security. That is why it is often possible to take out a loan with such a benefit. Below we provide some information per type of benefit.
Disability benefit In the case of incapacity for work, it strongly depends on the degree of incapacity for work and the expected duration of the benefit. If you have a WIA benefit, there are still options with a number of lenders. Often a distinction is made between WIA-WGA (where people are still partly able to work) and WIA-IVA (where people are no longer able to work).
Unemployment benefits Unemployment benefits are almost always temporary. That is why borrowing with unemployment benefits is usually not possible.
A Wajong benefit A Wajong benefit often provides a reasonable amount of certainty, which means that there are several lenders who take this income into account when determining whether a loan is provided.
AOW See borrowing in retirement
WWB - social assistance benefit With a WWB benefit, better known as social assistance benefit, it is often not possible to borrow. This benefit provides for the part of the income that you cannot provide yourself and will therefore not offer room for paying monthly costs on a loan. As far as we know, all lenders immediately reject a loan application with social assistance benefits.
Borrowing more expensive or not possible with benefits There are also lenders who do provide a loan with a payment, but then use an interest surcharge. In other words: borrowing with benefits is then more expensive than borrowing with permanent employment.
Lower loan with benefits It also happens that borrowing with a temporary employment contract is possible, even at the same interest rate, but then the maximum loan is often lower. The maximum loan is then, for example, calculated with 70% of the income.
Other factors Of course, lenders look at factors other than the nature of the income before making a loan. The most important and common factors besides the nature of the income are:
- the level of income;
- housing situation and housing costs;
- Credit Registration Office (with a negative registration a loan is rarely granted);
- family situation (a single person often has lower costs than a family with a few children);