Taking out a loan: how does it work and how long does it take?

Last step in borrowing money

Last step in borrowing money

After you have compared loans and applied for the loan with the lowest interest and best conditions, you can take out the loan. What do you pay attention to when you take out a loan, how long does it take before you can dispose of the borrowed money and do you have to do anything after taking out the loan? We answer these questions here. See getmeaband.com for an illustration

How does taking out a loan work?

How does taking out a loan work?

You have compared loans on interest and terms, received one or more quotes and you know which loan you want to take out. You must then collect all documents mentioned in the loan offer (such as the payslip, copy of your ID and a copy of your bank statement) and return them together with the signed loan agreement. Before sending back the signed loan offer, please note whether the interest rate corresponds to the interest on our site.

Check with the lender if there is a difference. It is also smart to keep a close eye on whether costs are charged. This is not common with consumer credit and it is simply forbidden for credit intermediaries to charge costs for taking out a loan. This is only permitted for any insurance taken out with it.

How long does a loan take?

How long does a loan take?

Once the lender has received, checked and approved all the papers, they usually transfer the money within a few business days. If there are already loans and they have to be repaid with the amount you borrow, the new lender usually deposits that to the other lender. In other words, they repay your old loan.

What do you do after taking out a loan?

What do you do after taking out a loan?

Once you have taken out the loan and have access to the money, it is wise to check the interest on your loan at least once a year. Then compare whether the interest you pay (you can see that on your statements, but you can also call the bank) is still one of the lowest. If there are lenders that offer a lower interest rate, request another loan offer and transfer the loan. Not only will you get rid of your loan faster, you can also make substantial savings on your interest charges.

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