Loan Application With Payment: 6 Determining Factors

Do you want to apply for a loan with payment and are you curious about your options? This way we are happy to give you more information about where you can and cannot go with your application. A benefit is a broad concept, which is why we further explore the following types of benefits:

  1. Unemployment benefits
  2. WIA benefit
  3. Wajong benefit
  4. WWB benefit
  5. AOW benefit
  6. Temporary workers

In short, persons with a long-term benefit are more likely to be eligible for a loan. It is the smaller loans (eg Ferratum) that are relatively easy to close with a payment. Larger loans are harder to apply for.

How much money you can borrow in total depends on various factors (see list below). Your income plays a major role in this. As indicated, it also makes a lot of difference if you receive a disability benefit, unemployment benefit, WIA or Wajong benefit.

All these benefits differ in terms of amount and duration. Something that can affect the approval of a loan. Loan providers always try to estimate the payment risk and determine whether or not a loan is granted to you.

If you qualify, these things determine the amount of the maximum loan:

  • Type of benefit
  • Your age
  • Monthly income
  • Monthly fixed charges
  • Possible BKR registration
  • Family composition

1. Take out a loan with unemployment benefits

 1. Take out a loan with unemployment benefits

Are you in unemployment benefits and do you want to take out a loan with unemployment benefits? Then your chances are zero. Unemployment benefit has a specific term and ends in the long term. The payment risk is simply too great for most lenders. In addition, rules have been drawn up that Hank Morganen must adhere to.

Despite that, the amount and duration of your unemployment benefit again determines whether you can go to the aforementioned mini-loan providers. By receiving a free quote, you will find out if you qualify. Applying for a loan with unemployment benefit is therefore only possible in very exceptional cases.

2. Borrow money with a benefit

Applying for a loan with a WIA benefit (formerly WAO) is possible, but depends on a number of things:

  • Duration of your WIA benefit
  • Amount of your WIA benefit
  • Subcategory You are in: the IVA (fully incapacitated) or WGA (partially incapacitated)

You can find out more about the type of WIA benefit you have on this page from the UWV. UWV generally sends you a letter in which all necessary details are stated. Take this and find out how you are doing.

If, after a long search, you still do not know whether you are eligible, you can ask lenders for a quote. You discover quickly enough whether or not you have a chance. Some lenders are less strict than others.

3. Apply for a loan

If you receive a Wajong benefit, then your monthly income is a lot more stable than the benefits mentioned earlier. Applying for a loan with a Wajong benefit is easy to achieve. Naturally, both your income and fixed costs arising from your personal situation are also taken into account here.

For example, do you live with your parents and are you seen as a household together? Then you will probably have less high monthly costs (such as rent). This can have a positive influence on the maximum amount of a loan.

Please note: the fact that you receive a form of payment lets some lenders apply extra rules. The following two specifics occur regularly:

  1. Only 70% of your benefit is used in the calculation of the maximum loan (and not 100%)
  2. An interest surcharge can be applied (= higher interest rate in loan)

These details are not ideal and can have adverse consequences. Yet it is ultimately the lenders who are allowed to determine the rules in this area. It is up to you whether you agree to this before you sign a loan contract.

4. Can I borrow with benefit?


The short answer to this question is usually ‘no’. The WWB is social assistance benefit that has been created to provide people with their basic needs. This benefit is relatively low and was further stripped in 2015 to 50% of the minimum wage per person. If you consider that in a household of 2 people you only receive 1 full minimum wage, it is logical that you will be denied a loan.

Applying for a loan with WWB benefit is therefore pointless. Unfortunately, loan providers will have to refuse you in this situation.

If you receive a WWB benefit, many special rules and regulations apply. The principle is that you do not have to receive every cent that you can earn yourself from the benefit. In principle, everything that you create in your own income is deducted from your benefit. Make sure you give everything up properly, otherwise you risk a fine and you end up with even less money. Of course there are exceptions. There are legal rules, but municipalities may also offer schemes themselves. These can therefore be different per municipality and even per case. So ask for it. Some schemes are about (temporarily) receiving a higher benefit, which they often call an allowance or increase. Other schemes are about reimbursing certain necessary costs, this is called Special Assistance. There are also rules about being allowed to keep certain income, this is often called an exemption. Finally, you can also be exempted from paying certain costs, such as municipal taxes. Consult with your contact person at the Social Services if you can be eligible for these rules. Tell us what you are up to, and especially ask about other options.

5. AOW benefit (pension) and additional loans

The General Old Age Pensions Act (AOW) provides a benefit, the so-called AOW benefit or pension. This is adjusted every year and you will receive it in 2018 as soon as you reach the age of 66. This age will be raised to 67 from 2021.

Extra borrowing money in addition to your AOW benefit is possible but very dependent on a few factors in your financial situation.

Think of:

  • Your current age
  • Amount of pension from employment
  • Income any partner
  • Mortgage and / or other debts

In general, (higher) loans are not provided to the elderly (66+) quickly. This has to do with the relatively short remaining life years that should theoretically be used to repay the loan.

If you receive a pension from past employment in addition to an AOW benefit, then you are more likely to get a loan. After all, you have a higher monthly income, which gives lenders more certainty.

If you have a partner with a solid income, this can possibly be included in the calculations. As well as existing debts such as a common mortgage.

6. Temporary worker and borrow money

Are you currently working as a temporary worker and do you need extra money to make ends meet? Then we can imagine that you want to take out a loan to pay the necessary bills and to provide for your first life needs.

Whether and how much you can borrow as a temporary worker depends on the employment agency where you are registered and the phase you are in with the position. Your employment agency must, among other things, have the SNA quality mark in possession of a NEN certificate.

There are three phases that influence whether or not a loan is received:

  • Phase A (contracted for up to 78 weeks)
    • Phase A / 1: (contracted for up to 26 weeks)
    • Phase A / 2: (contracted for up to 52 weeks)
    • Phase A / 3: (contracted for up to 52 weeks)
  • Phase B (contracted for up to 2 years)
    • Phase B / 1: (contracted for up to 12 months)
  • Face C (contracted for an indefinite period)

In principle, this is how it works: the longer you work as a temporary worker, the greater the chance that you can apply for a loan (of considerable size). If you are at the start of Phase A, there is very little chance that you can receive a loan.

Do I have to apply for a loan or not?

Applying for a loan with payment involves risks. These risks are not only for the lender, but especially for you.

Because you receive a low monthly income, a consumer credit is not always the most sensible decision. Discuss your situation with family and determine whether it is wise to apply for a loan.

Also go through Nibud’s Personal Budget advice . Here you enter both information about your family situation and financial data. In step 4 you will see how high the loan is that you can request and how high the risk is.

Another decisive factor that can influence your loan application is having a negative bkr registration. If you have this statement on top of your benefit, it becomes virtually impossible to take out a loan in the Netherlands. At least, via the official routes.

The BKR protects people so that they do not get deeper into debt. You will then really have to look for work to generate income. Only after you have restored your bkr registration, do you have a chance to borrow extra again.