Borrowing glossary

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Application Request: A free and non-binding request about the options for taking out a loan.
Payment Payment : Repay a purchase amount in installments. You will receive the purchase immediately. You officially become the owner of the purchase once the full amount has been refunded. If you do not meet your payment obligation, the seller can claim the product back.
Redemption Redemption : Repaying borrowed money. This is often done in monthly installments.
Interest-Only Loan Interest-only Loan : A form of loan where you only pay interest during the term. At the end of the term, you pay back the total loan amount in one go.
AOV AOV : Occupational Disability Insurance.
Insurance tax Insurance tax : Tax on insurance. The Insurance Tax is 9.7% (2012). The tax paid is paid by the insurer to the tax authorities. Insurance tax does not apply to reinsurance, disability insurance, life insurance, accident insurance, transport insurance and health insurance.
Investment credit Investment credit: Type of credit where you periodically pay interest on the loan amount. And also invests an amount in shares. At the end of the term, the shares must be worth enough to repay the credit in full.
Mediator Mediator : Someone who mediates in financial products, such as mortgages, loans or insurance. A mediator is also called an intermediary.
Credit Bureau Credit Bureau : Credit Registration Office The Credit Bureau is located in Tiel. A loan is registered with the Credit Bureau by banks and lenders. They also report unauthorized payment arrears here.
Debt Assistance Office Debt Assistance Agency: An agency that helps people find a solution to their problematic debts.
Consumptive credit Consumer credit : A bank term for forms of credit, which are used for the purchase of goods with a limited shelf life. Types of consumer credit are: Personal loan, Revolving credit, Installment purchase and Hire purchase. Products that are often financed with consumer credit are: car, white goods (washing machine, tumble dryer) and brown goods (TV radio, stereo system) and holiday travel.
Credit Card Credit Card : Debit card or Credit Card with which you can make purchases on credit. The seller receives the money from the credit card company and you pay back the amount later (possibly in parts).
Debit interest rate Debit interest rate: The interest rate that is calculated on a loan on an annual basis. The interest rate can be fixed or variable.
Revolving credit Continuous Credit : A Continuous Credit where the borrower is given a certain maximum amount. With a revolving credit, you only pay interest on the amount that has actually been withdrawn. The interest rate is variable. The monthly installment on a revolving credit is 1%, 1.5% or 2% of the credit limit.
Securities Credit Securities Credit: Securities credit is a credit against securities. The securities portfolio is pledged to the bank. The amount that can be withdrawn (the credit limit) depends on an agreed maximum and the collateral value of the securities.
Effective Interest Effective Interest : The effective interest is the annual interest rate of a loan in which all costs have been settled.
Money credit Money credit : Money credit is a term used for a loan where the customer is in principle free to do whatever he wants with the borrowed money. The counterpart is the goods credit.
Permitted overdraft on account Allowable overdraft on account : If you can withdraw funds that exceed your available balance on the account. You can stand Roos. This can be a checking account with a bank or an account with a home store.
Goods Credit Goods Credit: A form of credit provision in which there is a direct relationship with the purpose of the loan. An example is a loan that is specifically intended to finance the purchase of a new car. The amount, duration and form of the loan are geared to the object to be purchased.
Jointly and severally Liable Jointly Liable : If a loan contract is signed by two persons, then both persons are jointly and severally liable for the entire debt. Because of this joint and several liability, the lender can, if necessary, recover the entire debt from one of them.
Rent buy Hire purchase : In case of hire purchase, a financier lends you money to buy a certain object, for example a car. You then repay the purchase amount to the financier in parts. Only after payment of the last installment you are the full owner of the product. If you are unable or unwilling to pay back at a given moment, the installments already paid are seen as rent payments. The right of ownership expires and you can return the item to the seller.
APR APR : The annual percentage rate is the amount that you pay to the lender as compensation on top of the debt repayment. All costs of the credit are included in the APR, so that you can better compare offers from lenders.
Credit Provider Credit Provider : Financial company that offers money loans to consumers.
Credit Offer Credit Offer : Public communication in which a credit is offered.
In a credit offer, a statement of the effective interest rate, the installment amount and the term is mandatory.
Lender Lender : The lender is the person who lends money to another person (the borrower).
Credit Class Credit Class : Lenders divide credits into different classes, depending on the amount to be borrowed. A lower interest rate applies to a higher class (more money).
Credit limit Credit limit : The maximum amount to be borrowed. When determining your maximum credit limit, a lender looks at your income, your fixed costs and your personal circumstances.
Borrower Borrower : The person who borrows money from someone else (the lender).
Credit sum Credit sum: The amount of the loan.
Residential building A building serving for private habitation, including the outbuildings and site fences belonging to the building.
Payshare Real Estate Valuation Act
Credit Fee Credit Fee: The interest and costs that the lender charges for a loan.
Lease Lease : When you lease, you periodically pay an amount. In exchange, you get access to a specific object, such as a car. There are various lease forms. With an operational lease you only pay for the right of use and the object never becomes your property. So this is very similar to renting. A financial lease means that you buy the object and always pay part of it (plus interest). So this is very similar to hire purchase.
Duration Term : The period in which you must repay the loan. The term is usually expressed in months. With a revolving credit, there is only a theoretical term. You can always withdraw repaid amounts again.
Monthly charge Monthly charge : The total amount that you pay monthly in interest and repayment for a loan.
Monthly interest Monthly interest : The amount that you pay monthly in interest for a loan.
Co-liability Joint liability : Anyone who co-signs a financing contract is jointly liable for the repayment of the entire loan amount. Even if the loan was not intended for you, if you co-signed, the lender can recover the total outstanding debt from you if the payment obligations are not met.
Nominal interest Nominal interest : The interest that you have to pay on an annual basis for a loan.
Bridging loan Bridging loan: A loan that is used to bridge a period in which you have a temporary shortage of money. For example when you want to buy a new house, but have not sold the old one yet. As soon as you sell the old house, you use the proceeds to repay the bridging loan.
Transferring Transfer : Placing an existing loan with another lender or re-taking out an existing loan with the same lender at a lower interest rate. Often there are costs associated with transferring a loan.
Personal loan Personal Loan : A simple, clear and popular loan form in which the amount of the loan, the term, the installments and the level of the interest are fixed. You will be paid the total loan amount in one go and repay the amount (plus interest) via periodic payments within a pre-agreed period.
Current Credit Account ( RC ) Current Account Credit ( RC ): The option to be "red" on your current account up to a certain amount (the limit).
Interest Interest : The periodic fee that the lender charges for lending you money. The interest is a percentage of the credit sum.
Interest Credit Interest Credit : A form of revolving credit where you do not have to repay during a certain period. In that period, you only have to pay interest on the borrowed amount. This is especially an attractive form of loan if you now have high costs, but you are (almost) certain that you will have more money to spend.
Term Payment Installment Payment : The periodic payment from the borrower to the lender for the repayment of the credit and the payment of the costs (interest).
Variable Interest Variable Interest : An interest that is not fixed, but increases or falls with the interest rates on the money market. A well-known example of a loan form with variable interest is revolving credit.
Fixed interest Fixed Rate : An interest rate that remains the same for the life of the loan. A well-known example of a fixed-rate loan is a personal loan.
Delay Fee Delay Fee : A Delay Fee is an additional amount that is charged in case of payment arrears. Normally this is an (interest) percentage of the outstanding amount.
Early repayment Early Redemption : The payment of one or more installment payments earlier than agreed. In some cases, the lender will charge a penalty for early repayment.
Provisional refund Provisional Refund : Tax refund based on deductible interest on a mortgage, loan, or credit. Interest is deductible if the borrowed money was used for the owner-occupied home.
WCK WCK : Consumer Credit Act. This act has been largely replaced by the Financial Services Act (Wfd) and has been largely replaced by the Financial Supervision Act (Wft) on 1 January 2007. New definitions of credit have also been included in the Wft. Pursuant to Article 35 of the Wck, the maximum permitted credit compensation is still determined.
Employer's statement Employer's statement : A statement completed and signed by the employer with information about the income structure, position and employment relationship with the employee.
Wft Wft : The Financial Supervision Act (Wft) was introduced on 1 January 2007. This act regulates the supervision of the financial sector in the Netherlands. This act brings together all rules and regulations for financial markets and their supervision.
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