Financing studies, buying a laptop, acquiring the first car… There are many situations that can push young people and students to apply for a credit.
For their part, banks and credit organizations agree, from the moment the young borrower is at least 18 years old and has the financial means to repay his loan.
All you need to know about credit offers for young people and students in Belgium, as well as the conditions imposed by financial institutions.
The young loan in Belgium
For young people aged 18 and over, Belgian banks offer credit formulas at advantageous interest rates, with fees available. Even if the youth credit proposals are interesting, they are not granted to anyone, because the first condition to fulfill is the ability to repay and that each loan is a commitment.
The credit will therefore be granted if you are already working and your income is sufficient to allow this debt to a credit institution. And if this is not the case, it is possible to appeal to parents and relatives to stand surety for your loan.
From the moment you arrive to present all the necessary guarantees for a young credit, among others a work for student or a surety family, the final decision always belongs to the bank which can still change its opinion.
The youth loan in the form of financial assistance
In Belgium, young people who want to become real estate owners receive a boost from the Walloon Region. This is a financial assistance of 50 € per month that will be granted during the first eight years of repayment of your mortgage.
You can also cumulate with free insurance in anticipation of layoffs, bonuses granted to owners and tenants.
To benefit from a young loan from the Walloon Region, you must be 18 to 35 years old when you sign your loan agreement. You will also present a good record that details your income, the market value of the house you would like to buy or build. With the necessary attachments, plan the mortgage loan agreement with a credit agency working in collaboration with the Walloon Region.
Note that the maximum amount of a youth mortgage loan is set at € 25,000, for a minimum repayment period of 15 years, of which the first 10 years will be subject to a constant monthly repayment with a fixed rate. You also agree to make this house your principal residence during the eight years you access the youth loan.
Consumer credit formulas for young people
Even if you are still young, you have access to consumer credit formulas from banks and credit institutions. Provided you have stable income and can convince your lender that you are able to repay this loan.
Then, the conditions for granting credit will vary according to your needs and you will have to choose between several formulas, including the credit car assigned to buy a new car, or its unaffected form if you bet on a model of opportunity. For those who love both wheels, the motorcycle loan is also an interesting alternative because it is underwritten in the form of an installment loan that will finance the purchase of the motorcycle and often, you will be allowed to apply for a loan. little more than the budget needed in anticipation of insurance and maintenance costs.
A youth loan can also be given to you as a personal loan, so that you can spend the unlocked funds freely, without having to provide proof of use, for constant repayments. In return, you agree to repay the money and its interest during a given period and indicated in the youth credit agreement. And it’s about the same conditions for a loan work needed for a move or a development of your studio.
Because the young loan commits you to repay the capital and its interest for a given period, pret-simulation.be gives you the opportunity to compare offers on the Belgian credit market before signing a definitive contract. Thus, a free online simulation is proposed so that you can indicate an amount to borrow and a repayment period that suits you.
The results of the simulation will be presented in the form of a comparator table showing the annual percentage rate of charge (APR), the cost of a monthly payment and the total interest. This is so much information that helps you to compare the offers of credit institutions before subscribing to a youth loan. And above all, do not forget to always check your borrowing capacity, that is to say the difference between your fixed income and your expenses to obtain an amount to use to repay the credit.
What credit formulas for a student?
The classic student loan
To finance his studies, a Belgian student is entitled to a student loan, a financial assistance offered by the government of the French community. If the scholarship is paid directly to the student, the credit is given to the parents or other responsible persons of the student under the age of 35, and the loan will be repaid with interest.
To qualify for a student loan, you must be registered in a higher institution where you meet courses and exams, while never having to repeat.
Student loan in the form of an installment loan
If the financing of studies is already provided by the student loan, there are still essential needs such as the acquisition of a car to facilitate the journey between home and place of study, or the purchase of a computer portable.
And even if you’re already doing odd jobs next door, you’ll never be able to get all the money you need for such acquisitions.
Fortunately for you, Belgian credit institutions grant young students over 18 years and their parents installment loans to enable them to meet their expenses. To access it, use our personal loan comparator to estimate the amount you will borrow and the repayment period that suits you.
Before granting these student loans, the Belgian banking institutions will first check that you are at least 18 years old and have a stable source of income. Other conditions will be imposed depending on the type of credit to which you subscribe, the amount borrowed, the cost of a monthly repayment and the duration of the credit. A calculation of your debt ratio will also be done to ensure that even if you agree to repay a loan, you still have a rest to live.
In certain situations, the student loan subscribed in the form of an installment loan is requested by the parents and the student is considered a co-borrower. Thus, if ever the repayment capacity of the student is not sufficient, the parents come to the rescue and will take care of the repayment of the loan which will have been used to pay the registration fees, to invest in material to send the child abroad for the rest of his university studies. Often, a document is signed by borrowers who give the lending institution a right to transfer part of their salary if they can no longer repay everything.
Bonding a student loan
You are a student and at the same time you work as a seasonal worker, a job that does not really reassure banks looking for stability with potential borrowers. Despite the absence of fixed income, it is still possible to apply for a student loan from banks, but by asking for the help of a parent or a relative to be a surety. When your co-borrower signs the credit agreement with you, he or she agrees to continue to repay the loan if you are unable to do so.
And if you are an heir, you will be able to present real estate as collateral or surety, and the mortgage form will be used to obtain a low interest loan. As long as you are very good at paying the monthly repayments of your loan, you have nothing to fear. On the other hand, if you have payment difficulties, the bank risks seizing your house and selling it to recover the loan money. Think carefully before signing anything and avoid engaging yourself lightly. If you feel that your income allows you to repay the repayments, even when you have to spend more money, go ahead and claim credit as a student.
As you can see, there are different ways to apply for a credit when you are young or studying in Belgium. You just have to choose the best formula, the one that best suits your situation and for that, start by making the calculation of your real needs to obtain the necessary budget which will be the subject of the financing on credit. But most importantly, save a little money in anticipation of hard times such as a drop in income due to a layoff or car breakdown. And above all, take the time to compare student credit and youth loan offers to find the cheapest and most suitable formula for your financing needs.