8 easy ways to get a loan with a low interest rate

A matter of risk

The formula is rather simple: When a bank grants a loan, it takes a risk: that of not being reimbursed. The greater this risk, the more she will make it worth it, simply by increasing the interest rate and therefore the amount of money she will earn over time. If she considers the risk too great, she will simply answer no.

It’s all a matter of “reassuring” your bank using various arguments so that it considers that the risk of not being reimbursed is low. And this can be done through different tricks:

1. Have a co-borrower

Many do not necessarily know it, but it is possible to be several to sign the loan contract. This has the advantage of reassuring the bank because two people together have a much greater repayment capacity. And a greater repayment capacity means a lower risk for the lender.

2. Reduce the term of the loan

The longer the term of the loan, the more the total to be repaid will increase. Simply because the interest rate is annual. If you borrow €10,000, you will have to pay 4.5% of what you have left to repay each year that passes. If you offer to repay a larger amount each month, you will be cleared of your debt more quickly, and therefore will have to pay less interest.

3. Justify the loan

In particular using quotes and invoices. We speak of an assigned loan when a loan is granted for a very specific type of project such as buying a car or doing renovations at your home. By knowing what you intend to do with the money it gives you, a bank will be more inclined to accept and offer a lower interest rate. Depending on the bank, you will find loan formulas that are quite popular. The “energy” loan, the “car” loan or the “works” loan are the main examples.

4. Have no other debts

It seems obvious. If you have other outstanding debts, the bank may well decide to refuse to lend you money. Quite simply because part of your repayment capacity is already reserved for your old debt. The risk of over-indebtedness is therefore much greater in the eyes of your lender. A solution for this is to make a grouping of credits. This simply consists of collecting your debts into one, with a single bank. By doing this, you may be able to negotiate a lower rate.

5. Combine your loan with other products from the same bank

Banks favor their customers, of course. If you already have a current or savings account, or if you take out outstanding balance insurance with your loan, the bank will know you better and will most certainly be able to offer you a lower rate.

6. Compare bank rates in Belgium

This may seem like a daunting task, as you have to ask each bank what rate they charge for the amount and duration you want to borrow. But in reality, you can get offers from all banks with just a few clicks through the platform TopCompare.be.

–