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
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.
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.