The Number of Loans is Growing: Mainly for Car and Residual Debt

In 2016, more consumer money was again borrowed from the Netherlands. The most important goals for a loan are a car and financing a residual debt.


Dutch people borrow more money

borrow more money

In 2016, more money was borrowed in the Netherlands than the year before. This is according to figures from VFN, to which half of all lenders are affiliated. 3.4 billion euros in loans were granted last year, a growth of 21%. In total, a balance of 8.5 billion euros is outstanding, a growth of 3%.

According to VFN, the growth in the number of loans is in line with economic growth in the Netherlands. Consumers have more confidence and will invest and spend more. The current low borrowing interest rate also plays a role. Borrowing money is cheaper than ever.


Security important when borrowing money

Security important when borrowing money

Consumers often opt for security for their loans. The trade association signals a ‘rapid shift from revolving credit to personal loan’.

  • With a personal loan, the interest for the loan and the repayment schedule is fixed. That way you know where you stand when you borrow money.
  • A revolving credit is a spending credit where the interest and repayment are variable.


Car and home principal goals loan

Car and home principal goals loan

Research by Gildshop shows that a car or the home are the most important goals for a loan. These are the main reasons for the increase in the number of loans:

  • When borrowing money for a car, the growth can partly be explained by the emergence of a private lease. However, the number of regular car loans is also increasing.
  • A loan for a home is most often taken out to finance a residual debt. The recovery of the housing market plays an important role in this. There are also more options for financing a residual debt. This is still possible for tax purposes, but next year the interest deduction for a residual debt financing will expire.
  • Money is also borrowed more often for investments in the home. The kitchen, bathroom or renovation are the most important goals for a loan. Stricter mortgage standards mean that money is increasingly being borrowed for the purchase costs of the home.
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