The acceptance procedure concluding a personal loan works well

“A personal loan: consumer choice and experiences” is the title of the large-scale research published today by the National Institute for Budget Information (Duben).

With this research, Duben examines the choices consumers make when subscribing to a loan and the influence of the environment of choice (for example, the website) on this point.

KuruCredit, as an independent intermediary, also took part in this research.

The personal loan

The personal loan

5% of the Dutch have a personal loan. The personal loan is a loan in which the duration of the contract is determined in advance and the amount of the loan is also entirely the responsibility of the consumer. An average duration of 8 years applies. During this period, the consumer pays an average monthly refund of 300 €.

Research has shown that 95% of respondents do not consider this reimbursement problematic or that they should not have started the loan.

This can be experienced as positive. Among other things, the proper control by the lenders as to whether the applicant can bear the loan on the basis of income, family composition and other obligations, ensures that the consumer will never borrow again if he can the supporter.

Personal loan as an example

Personal loan as an example

More than half of the Dutch use a consumer credit product. Personal loan is not the only consumer credit product used by consumers. There is also revolving credit, installment purchases, credit card and telephone credit.

When the acceptance procedure with the personal loan is very good, it is less so for loan products of between 250 and 1000 €. In the long run, this may result in arrears, as shown by a recent study by the Credit Register Office (BKR). This study shows that 6.4% of consumers registered with BKR (674,000) were late in paying.

Duben believes that consumers who take out a loan need to know where they are and if they can pay for it. Duben therefore requests that the acceptance procedure for all types of credit be improved, as is the procedure for accepting personal loans.

Total cost and duration

Total cost and duration

The Duben study shows that as many as 96% of respondents took a look well in advance to see if they could repay their loan. In addition, 92% of respondents are satisfied with the loan afterwards. One measure of this satisfaction is the duration of the loan. It seems that consumer discontent increases with duration.

Duben recommends paying particular attention to the duration of the loan, and thus to the total loan amount, during the process of applying for and taking out a loan as a consumer. A shorter duration usually means a lower total amount.

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