A longer term can reduce the monthly burden of your loan. From September, more loans are eligible for retransmissions with longer duration.
Long term for low monthly charges
The longer the duration, the lower the monthly charge. You spend less money per month on repaying the loan. A longer duration can therefore be interesting to lower your monthly payments.
The maximum term for a consumer credit is often 10 years (120 months). Last year, Goodbank was the first lender to introduce a 15-year loan (180 months). However, this personal loan could only be taken out to finance a residual debt or a renovation.
More loans eligible for retransmission
Goodbank has broadened its conditions so that more consumers are eligible for a loan with a longer term. From now on you can also transfer existing loan (s) to Goodbank with a term of 180 months. This includes loans from other companies.
Your new loan with Goodbank is tested against the current credit burden, instead of the income. This means that if you can now pay the monthly payment, this is sufficient to provide the loan. Goodbank provides loans with a long term of at least € 15,000 to a maximum of € 75,000.
A number of restrictive conditions
There are also a number of restrictive conditions to transfer to the longer term of Goodbank:
- No additional credit may be included.
- You cannot repay without penalty.
- Self-employed persons are not eligible for the long term.
A long-term loan is interesting for reducing your monthly payments. However, this does not mean that you are spending less. Because you pay off less quickly, you pay more interest during the term. The fact that you cannot pay extra without penalty makes the loan less flexible.
For whom interesting?
A term of 15 years can therefore give you more ‘breathing room’, especially with high credit amounts. However, it is not wise to choose a term that is longer than the lifetime of the good consumer. This prevents you from continuing to pay for something that you no longer use.
With a consumer credit of 15 years you will soon end up with an investment in your own home. Goodbank already provided for this in new loans. Now existing loans (from Goodbank and other companies) can also be transferred to a longer term.
A consumer credit is worth considering for financing a residual debt or renovation. Unlike a mortgage, you can take out a loan quickly and free of charge. In addition, the loan interest in the case of a residual debt or renovation financing is, subject to certain conditions, tax deductible.