Do you want to take out a social loan, or are you curious about this? It ensures a lower interest rate, thanks to the support that the government provides to its providers. If you plan to buy a home or make an investment in it, for example, it is worth checking whether you are eligible for a social loan. This is the case in a number of cases. It is of course wise to go to a bank or an independent advisor for a loan, but the government is also a provider of credit. You have the option of taking out a relatively inexpensive social loan, thanks to the low interest rate and the good conditions that match the social loan.
Flemish Housing Fund and Flemish Society for Social Housing
If you plan to take out a social loan or to obtain more information about it, it is for example wise to focus on the Flemish Housing Fund. The government provides a form of subsidy, which ensures that this fund can offer a very competitive interest rate for the loans. Of course you have to take into account that you have to meet various conditions in order to qualify for this and take out the loan. Do you meet this, or do you have the opportunity to do so? Then it is very interesting to save costs in this way.
You can also go to the Flemish Society for Social Housing (VMSW) for a social loan. Since 1 January 2014, this company has applied the same conditions as the Vlaams Woningfonds, so you can use one of the initiatives. You can find out yourself whether you qualify for social housing, in order to make use of a loan with a competitive interest rate. Does this not appear to be the case? Then there are other possibilities to reduce costs as much as possible.
Social loan and guarantee from the Flemish government
With a social loan you can think for example of a guarantee from the Flemish government, or for example of a region. They will then, as it were, guarantee the loan you wish to take out, giving the bank more certainty that the money will come back anyway. In addition, the guarantees ensure that you have the opportunity to negotiate the lowest interest rate with the bank. Is this not possible with the bank alone? Then, thanks to the guarantees from the government, it is still possible to reduce the interest rate, so that you can keep costs well under control.
The Flemish government has designated a number of lenders who can be of service to you with a cheap loan. The government is looking closely at the way in which the banks operate and the negotiations they conduct. You can use the Onesto home loan site to find out where you have the opportunity to receive support and take out a social loan. It is wise to focus on those lenders, as the social loan ensures that you can take out the best possible interest rate and keep costs to a minimum.
Green loan from the FRGE
Do you already own a home, but would you still like to take out a social loan? In that case you can, for example, use the green loan from the FRGE. For example, if you plan to place solar panels on the roof or if you want to have a renovation done to better insulate a house, it is quite possible to get a form of subsidy for this. You can use a green loan, which as a social loan ensures that the interest rate is considerably lower than would normally be the case. You can use the FRGE’s website to find out where you have the option of taking out such a social loan, using the resources available. Before you take out a loan for a home or the improvement thereof, it is wise to properly list all options. In this way you ensure that you know what is possible and what you can possibly deliver. If it does not work you can not take out a social loan, but if there is a possibility that is of course a nice bonus and you can therefore opt for the social loan.
Lower interest rate thanks to social loan
The social loan ensures in almost all cases a lower interest rate, which can very easily ensure that the costs will decrease considerably over the entire term. For example, suppose you pay an interest rate of 4% on a loan of $ 125,000. In that case it will cost you $ 5,000 per year in interest. Would the interest be only 0.2% lower and would you therefore only pay $ 3.8%? Then this lower interest rate ensures that you can save $ 250 on the interest annually. If there is a term of 20 years, this means a saving of $ 5,000 over the entire term, so that you can borrow money for the first year, as it were. The interest rate of the credit therefore has a major influence on the final costs, making it important to pay close attention to this. In addition, take into account the other conditions of a social loan, both with which you must meet and during the term of the credit. Compare the social loan online with other credits and make your own choice between the various offers available to see where the social loan will be most suitable.