Stricter rules for loans


The National Institute for Budget Information (Nibud) wants stricter rules for all types of loans, including small loans. The organization thinks that when it comes to taking out a loan, it becomes clear more quickly whether people can pay the loan.

When a personal loan is taken out, a check is currently being made to check whether someone can pay the monthly costs associated with the loan. Do the costs match the income, the family composition and other payment obligations? That control, called the acceptance procedure, should also be applied to the other (and smaller) loans, according to Nibud.

Influence choice environment
Nibud researched, among other things, the acceptance procedure and the influence of the environment in which loans are offered. Furthermore, the choices and experiences of consumers who have taken out a loan were examined. The investigation shows that the structure of the lender’s website influences the loan that someone chooses. The fact that the influence of the choice environment, such as a website, has also been considered for the first time.

Better pay attention to maturity
With a personal loan (which has 5 percent of the Dutch) the term is fixed (usually 8 years with a repayment per month of 300 euros). Almost no one thinks it is a problem. 3 percent said she should not have taken out the loan. Nibud is keen to see lenders helping consumers better pay attention to the term of a loan. For example, by showing the total amount of the loan more clearly on the website. Currently, consumers pay special attention to the level of interest and the monthly amount. From May 1, 2019, stricter rules will also apply to revolving credits. For example, the carrying capacity of a loan is assessed more often and the term of a loan is limited (er).