Social loan

A social loan is a special way of borrowing for lower incomes who cannot get a loan elsewhere but still need money urgently.

A social loan can be used to finance a house or for normal use and is mainly known in Belgium. In the Netherlands, Sociale Banken Nederland (SBN) provides social loans.

These Social Banks Netherlands are a collaboration between 14 regional social credit banks and operate on a non-profit basis. So cheap loans, but borrow responsibly for a useful purpose.

A loan for a new television or borrowing money for a holiday will not be possible from the SBN. These loans are therefore only provided for lower income (up to 130% of the applicable minimum gross salary).

The SBN does charge an interest rate, but this will be much lower than with a commercial bank.

Advantages and disadvantages of a social loan

  • Very low interest and good guidance.
  • Only borrow money for essential things.
  • Only for very low incomes.
  • Only borrow money for essential things.

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