Repaying your loan is obviously important because in the event of a default on two monthly payments, the borrower will be registered with the National Bank of Belgium and their loan will be called in.
When a loan is called in, the borrower will be required to repay it in full, and payment facilities will be withdrawn. Moreover, they will be banned from accessing the credit market for 15 months.
A few words of explanation about loan repayment…
Loan repayment in recent news
The number of Belgians having difficulty repaying one or more loans increased again in April, reaching 335,373 units, representing a 4% increase on an annual basis.
The total amount of repayment arrears also hit a new record, at 2.84 billion euros, according to figures released on Tuesday by the Central Credit Register of the National Bank of Belgium (NBB). The increase in the number of Belgians having difficulty repaying one or more loans has continuously risen since a slight decrease in mid-2012.
The average delay per loan now stands at 5,784 euros. In total, 11.42 million loans (8.6 million consumer loans and 2.77 million mortgages) were being repaid in April. These concerned 6.23 million individuals.
When should I start repaying my loan?
Previously, it was quite possible to start repaying your loan two months after signing your loan contract.
For example: if you took out a loan on June 15, you could start repaying it by August 15 at the latest.
Given the aforementioned evolution of loan repayment difficulties, this repayment facility has been abolished, and the current regime is stricter. You are now required to start your monthly repayments no later than the month following the signing of your loan contract.
Thus, if we take the previous example: you must have made the first repayment by July 15 at the latest. Likewise, you must make your next monthly repayments by the 15th of each month at the latest.
What should I do if I have difficulty repaying during the loan term – can I defer a few months of repayment to give myself some breathing room?
Previously, it was possible, with the agreement of your lender or bank, to defer the repayment of your loan by one or two months.
Again, for the same reasons mentioned above, this facility has been abolished, and failing to pay two of your monthly installments will inevitably lead to being registered with all its inconveniences.
At Crédit Populaire Européen, however, we have developed an original solution for people who are experiencing temporary cash flow and loan repayment difficulties. We are therefore able to give you a respite of one to two months. We invite you to contact us and discuss it with our brokers.
