You borrow money if you need money and means that you receive money from a lender against a consideration, this consideration will be paying interest on the loan. In this way, the lender makes a profit on lending money and has the certainty that he will see his money back.
Where can you borrow money?
You can borrow money at different places. For example, you can borrow money from financial institutions such as banks and online lenders. As a student you can also close a student loan. Possibly you can also borrow money from friends or family.
Borrowing interest on money
If you are going to borrow money you will usually have to pay interest on the loan amount. As a result you usually pay more money back than you have borrowed (borrowing money costs money!). Rarely does it happen that you do not have to pay interest on your loan, but there are loans where this is the case. For example, when you close a minilening or mini-credit, you often did not have to pay interest a few years ago, but were the service costs on the high side. If you pay too late for your minilening, legal interest will often be charged over the period that you are late with paying. You will also be confronted with collection costs that you have to pay. If you are going to borrow money from family, acquaintances or friends, you may not have to pay interest either.
Loan on time repayment
When borrowing money, money should be repaid. Usually, a certain period applies in which you have to repay your loan. Some loans have a repayment term of one month, while other loans have a repayment term of several years. Remember in advance to what extent you can pay off the loan in the repayment period. A loan with a short lead time will have to pay off quickly and in fewer installments, so you have to have money quickly to repay. A large loan with a long repayment term ensures that you can pay off your loan in many periods. However, interest is counted (much) interest, which means that you have lost a monthly amount to your loan for many years. If you have several loans, then you pay several amounts per month, so that your expenses can rise considerably. An option is then often to look at these loans to be transferred, which means that the charges can be printed more often.
Borrow money with BKR
The BKR records people who borrow money. Borrowing money with BKR means that you borrow money if you have a negative BKR registration. Such a BKR registration ensures that it becomes difficult to still get a money loan, because of the risk that lenders run and the statutory rules, which the lenders who have an AFM license have forbidden to borrow money with BKR.
For example, borrowing money with BKR can be done by concluding a mini loan.