The less money you have, the greater your need to borrow money to be able to get around and do nice things.
Especially if you have no income at all, this need is very great. Unfortunately, in the Netherlands it is not easy to borrow money if you have no income. Many even think that borrowing money without income is not possible at all and do not deepen in borrowing money if they are left without an income. However, borrowing money without income is indeed possible …
Financial institutions, such as banks, always want to be certain when granting a loan that the money will be paid back properly after the loan period has expired. If you do not refund the borrowed money, the lender starts a recovery procedure. This kind of procedure is very expensive and always comes at the expense of the person who borrowed the money from the bank. Because people without income can not meet this extra payment, banks almost never have the risk of providing a loan to someone without an income. That is why it is almost impossible to get a loan from a bank if you have no income. Do know: it is possible, but very difficult. Only in rare cases do banks take the risk and people without income receive a loan from the bank.
If you still want to borrow money without income, you can turn to private lenders. The loans they provide are called private loans.
In the case of a private loan, the private individual takes out a loan from the bank, in order to subsequently lend it back to you. Individuals who issue private loans often require a certain interest percentage that you have to pay to them. Unfortunately, the interest rates of this type of loans are often very high. This is not really a good option for people without an income, because the costs quickly become very high, while you can not pay this.
Other options that you can consider borrowing without income are taking out an interest-free loan with family or friends. You can also choose to pay a visit to the city bank of a loan. The city bank of a loan is a kind of bank that asks for collateral when borrowing money. At the city bank of loans, you will therefore receive a certain amount of money for your collateral, after the bank has covered it against possible defaults. You can decide for yourself which of your assets will serve as collateral. If you have no assets, then you have no collateral and therefore unfortunately no loan.
When you take out a loan, always make sure that you are able to meet the agreed repayments.
If you are not sure whether you can meet the payment, it is better not to take out a loan. When you take out a loan, pay attention that you do this at the lowest possible interest. Borrowing a large sum of money seems attractive, but if the interest rate is very high, this can still turn out negative.