Applications for social loans Belgium exceeds capacity

Belgians with a limited income can go to the Flemish Social Housing Company (VMSW) for a housing loan, a social loan for the purchase of a home.

Social loans are very popular in Belgium.
Social loans are very popular in Belgium.

Limited income refers to households with a taxable income of between US $ 7,720 and US $ 30,860 for a single person and US $ 46300 per year for a family of at least two people. These households can claim a home loan, a social loan , with an interest rate of 1.67%. This extremely low interest rate also largely explains the success of the loan offered.

However, the problem with these housing loans is that there is an enormous waiting list and the Flemish Social Housing Company has too little money to provide everyone with the loan.

The loan offered can also be used to purchase a home that is at least 30 years old and which needs to be renovated, even if the home is already owned by the applicant. In many cases, the maximum purchase price of the home is USD 156,690, with a more extensive household composition offering more options.

The fact that these social loans are in demand is evident from the fact that in June last year the budget reserved for the loans was already used up, so the provision of the loans stopped immediately. At the end of 2009, more than 200 households were also on a waiting list for a social loan. It is expected that this year, too, the provision of loans will be stopped prematurely and many households turn to Belgian lenders for a 'normal' loan.

Published February 8, 2010 at 11:20 am by the editors .

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