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People with a low salary can borrow money from the social bank

When you think of social banking, you randomly think it’s easier to get a loan. Is this correct too? What is a social bank and where can you find them? Clarification at https://itoldme.net/recommendations-and-requirements-for-a-loan-to-pay-my-debts/

Social bank is affiliated with debt counseling

Social bank is affiliated with debt counseling

Social Bank is a joint venture between municipalities and 24 social credit banks. They are all members of the Dutch Association for CreditVolt, which is an umbrella organization for debt counseling. A total of 90 social institutions and companies are affiliated with the CV. The members have a social objective and are not aimed at achieving a maximum profit like the normal banks.

Who can borrow money?

Who can borrow money?

The conditions for getting a loan from the social bank are different from the normal bank. You can go there if you earn less than 130% of the gross minimum wage. From 1 July 2017, the minimum wage for someone aged 23 and older is € 1565. If you do this x 130% then the limit for borrowing from a social bank is € 2035 gross. People with a BKR listing, problematic debts and a temporary residence permit can also go to the social bank. If you are a freelancer or entrepreneur, you cannot borrow money there, but you must look for a commercial bank. Only low-income individuals are eligible for a cheap loan.

Not all applications are accepted. The social bank also wants to see its borrowed money back. They don’t have to make a profit, but they can’t make a loss either. An application is therefore carefully considered. The maximum loan amount depends on personal circumstances. The minimum loan is 500 euros. The maximum is a few thousand euros. The repayment is in flexible monthly installments with a low interest rate. The maximum duration of a social loan is 60 months.

Fines forgiven?

Fines forgiven?

A fine of € 225 or higher may be paid by the government in installments. There are plans to make this also apply to several smaller fines that together have a value of € 225 or higher. Remission is only possible with a voluntary debt restructuring in which you are placed under strict supervision.

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