What is an instalment loan?

What is an instalment loan?

An instalment loan is an agreement to take out credit. You borrow money from a lender. In the case of KBC, that's KBC Bank NV. Once you sign the credit contract, you give a commitment to repay the loan in regular amounts (such as every month). You have 14 days' time to reconsider and, if you want, you can change your mind about taking the loan and cancel the credit contract.

Fixed terms and conditions and instalment amounts

The terms and conditions governing an instalment loan are fixed: they are not open to negotiation. You agree a fixed interest rate and always pay off the same amount at the same point in each period (e.g., the third of each month).

Limited repayment period

What is an instalment loan? A credit contract under which, at regular intervals (such as every month), you pay off a portion of the amount you borrow.

The time over which you can pay off an instalment loan is restricted by law. The maximum depends on how much you borrow. In the case of KBC, that period is ten years.

Protection for your savings

Thanks to an instalment loan, you don't have to withdraw your savings or cash in your investments. So you still have a financial buffer to cater for unexpected expenses.

Cheap finance

Instalment loans are relatively cheap. It's important to note that you can't borrow more than 50 000 euros, on which a favourable rate of interest is charged. The rate varies according to what the money is used for and the period you choose to pay the loan off.

Attention, borrowing money also costs money

Form of credit: instalment loan. Lender: KBC Bank NV, Havenlaan 2, 1080 Brussels, VAT BE 0462.920.226, RLP Brussels, FSMA 026.256 A. Subject to your credit application being approved by KBC Bank NV.

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