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Applying for credit to finance various products and activities such as a car, a wedding or a trip is a fairly common practice in our current society. Many people are granted a loan but few of them know that it is necessary to take out insurance to guarantee the loan.

Highlighting this concept, often misunderstood by borrowers because of the additional costs it generates.

Why is it necessary to provide insurance in a credit contract?

Insurance is a guarantee for the heirs or relatives of the borrower in the event of death or disability of the latter. Thus, no person will be obliged to repay the loan if something bad happens to the person responsible for payment.

Furthermore, thanks to “outstanding balance” insurance, the bank granting the loan is protected when a repayment is not made. Therefore, if it is ever impossible for someone to fully pay off a loan, the financial intermediary is protected in the event of default.

Is insurance a separate contract from credit?

The companies managing insurance and those granting loans constitute two sets of different and independent companies. Consequently, the contract certifying the obtaining of a loan and the one certifying the addition of insurance are two completely separate agreements.

Is it possible to take out a credit contract without insurance?

Please note that insurance is optional and that there is no legal obligation forcing you to accept these additional costs. On the other hand, the banks are all looking for this guarantee and it will therefore be difficult for you to override this measure if you wish to acquire a loan.

How is the cost of insurance calculated?

Obviously, the price of insurance varies depending on the capital borrowed. Other factors are also taken into account when determining the amount of this guarantee. Among the most important, we find the age and the state of health of the borrower. Without forgetting the duration of the contract, playing an important role in the final calculation.

How is the insurance premium paid?

Two options are now available to you if you opt to add insurance to your credit.

On the one hand, this payment can be made directly and using a single transfer. No amount is therefore removed from the initial cost of the loan.
On the other hand, if you are unable to pay such an amount when the time comes, the cost will then be deducted from the original value of the loan when the money is transferred to your account.

By “consumer credit” we mean any credit used for something other than financing the purchase of a building: car, household appliances, travel, marriage, etc. Consequently, consumer credit does not require any particular justification. The borrower must therefore not provide a purchase invoice or a work estimate to request credit.

This can be: an installment loan (loan for a fixed period and fixed monthly payments), an installment sale (sale for which you pay the price in several payments), a financial lease (contract of rental of a property, accompanied by a purchase option on it), a credit opening (reserve of capital that you use according to your needs, often thanks to a card), a bridge credit (short-term credit used to advance funds pending receipt of a large sum repayable in one go).

Access to consumer credit is generally available from an amount of €2,500 and can go up to an amount of €75,000. The APR (Annual Total Effective Rate) is essentially the criterion of choice to which the consumer must pay particular attention.

APR and consumer loan

The APR is legal variable data which is updated every 6 months by the National Bank of Belgium. Please note, this does not mean that your APR varies every 6 months. Indeed, as soon as your consumer credit contract is signed, your APR (ultimately what determines your interest rate on the sums borrowed) remains completely fixed for the entire duration of your credit contract.

Currently, the APR defined by the National Bank of Belgium varies in a range from 11.5% to 15%. This means that the minimum and maximum APRs are defined by law and do not vary in any way from one broker to another. On the other hand, your broker can make a commercial gesture and grant you the minimum legal rate according to the criteria that he himself defines in the relationship he maintains with his customers.

It is essentially the duration of your credit and the amount borrowed which will vary the APR. Thus, the greater the amount, the closer the APR will be to the legal minimum. The shorter the duration of the credit, the closer your APR will also be to the legal minimum.

There are credit formulas which allow you to benefit from lower APRs but in this case, the borrower is no longer in a consumer loan formula but rather in a assigned loan such as: car financing, a works loan where the borrower must provide proof of their purchase (purchase invoice, estimate for the works, etc.)

Other important points

Once the contract is concluded, the law still grants you a reflection period of 14 calendar days during which you can renounce the credit by means of a registered letter sent to the lender or any other means of communication accepted by the lender and indicated in the contract.

Finally, it is useful to know that in the event of an anticipated balance of the loan, the borrower is reimbursed part of the interest which is in fact not due since the duration of the loan has been shortened.

Discover the National Bank of Belgium. The subscription of a personal credit contract, a consumer loan, an installment loan is part of a triangular relationship between on the one hand the client, the final consumer, and on the other hand, the credit intermediary, namely your broker and the bank providing the funds.

This triangular relationship is overseen by the prudential supervision of the National Bank of Belgium. This state institution has a fundamental role in consumer credit. It is, in a way, the guarantor of the good health of our economy and it ensures the proper execution of credit contracts. It is a formidable database which records all the details of the credit contracts concluded.

Obligations imposed on credit intermediaries and banks

Credit intermediaries and banks have the dual obligation to:

To register all signed credit contracts with the National Bank of Belgium.
They also have the obligation to denounce credit contracts when two monthly installments have not been paid: this is what we call filing.

Roles of the National Bank of Belgium

On the one hand, all consumer credits and mortgage loans which fall within the scope of application of the law of August 10, 2001 relating to the Central Credit Center for Individuals, as well as their payment defaults are recorded in the “Personal credit center“.

The Centrale is also responsible for registering notices of collective debt settlements.

The retention periods for data relating to credit contracts are as follows:

For non-regularized contracts or unextinguished debts, ten years from the date of the first communication;
For contracts made due or late in payment, one year from the return to normal of the contract or the date of extinction of the debt
For current contracts, 3 months and 8 days after the contract expiry date

On the other hand, the “File of non-regulated registrations” contains defaults incurred by consumers for certain consumer credits, mortgage loans and other financial commitments which do not fall within the scope of application of the aforementioned law.

While the European Central Bank (ECB) is the central bank of the European Union (EU) and the Eurozone, is responsible for European monetary policy.

Among the ECB’s main responsibilities are managing the euro area’s currency and foreign exchange reserves, setting interest rates, and regulating and supervising euro area banks and financial institutions. The ECB also plays an important role in the management of public debt and financial stability in general in the Eurozone.

Registration at the Belgian national bank

As a reminder, in the event of failure to pay two monthly premiums, your financial organization will file the consumer’s file.

The consequence is important because the consumer will no longer be able to borrow before a period of 15 months after the regularization of his credit, that is to say the full payment of the sums borrowed.

How to get rid of the Belgian national bank?

To declare your withdrawal from the Belgian National Bank, you must complete a withdrawal form and return it to the Belgian National Bank. You can find this form on the website of the Belgian National Bank or by requesting it from your bank branch.

Here are the steps to follow to declare your display:

Download and print the screening form available on the website of the Belgian National Bank.
Complete the form with your personal information, such as your name, account number and address.
Sign and date the form.
Send the form by post to the following address: National Bank of Belgium, Bad Debts Department, Montagne du Parc 3, B-1000 Brussels.

It is important to note that you may be required to provide additional documentation to support your request for defilement. For example, if you have outstanding debts, you may need to provide a copy of your credit agreement or invoice.

It’s also important to note that deforestation does not erase your debt. You will still have to repay your debt, even if you are destitute. If you are experiencing financial difficulties, it is recommended that you contact your bank or a credit counselor to discuss your repayment options.

The Salon Batibouw 2024 is a major exhibition for the interior design and construction industry in Belgium, which takes place once a year.

Participants are professionals who are interested in the latest trends in design and construction.

It is therefore between February 20 and 25, 2024 that the next Batibouw show will open within the Brussels Expo palaces.

Your show for the construction, renovation and beautification of your home: discover our special credit conditions now.

Do you have real estate projects in mind? Construction, work, renovation, beautification: it’s the ideal time! With the Batibouw salon, take advantage of advantageous credit conditions. There will be around 1,000 stands open on the site!

BATIBOUW, the largest Belgian Construction, Renovation and Arrangement exhibition for professionals and individuals takes place from February 20 to 25, 2024.

BATIBOUW is the largest Belgian Construction exhibition

but also Renovation and Interior Design for professionals and individuals.

The Batibouw trade fair is the meeting place for home, real estate and construction specialists. You will virtually find your exhibitors, advice and professionals who will help you carry out the construction, renovation or beautification of your home.

Practical tips

Tickets

Online tickets

Adults: €15
Children (up to 16 years): free
Groups: €13 (min. 15 tickets)
Afterwork: Free on weekdays from 4 p.m. (evening included).

Visit BATIBOUW and train!

For each purchase or registration of a ticket online, you receive an SNCB code directly on your ticket allowing you to purchase a Discovery Ticket. You then benefit from a 50% reduction on your round trip to Brussels-Midi!
More information on the Discovery Ticket here

Tickets on site

We advise you to purchase your tickets online in advance to avoid lines at the entrance to the show.
Please note, it is not possible to pay on site with cash (cards only).

Adults: €15
Children (up to 16 years): free
Afterwork: Free on weekdays from 4 p.m. (evening included).

Practical information about batibouw

BATIBOUW is accessible from Tuesday February 20 to Sunday February 25, 2024.

Business hours :

10:00 a.m. to 7:00 p.m. daily
Late nights on 02/23 until 10:00 p.m.

BATIBOUW 2024 an emphasis on ecology!

The show has always strived to be visionary since its inception. For example, they were concerned about environmental issues during the 1970 oil crisis by creating a space for isolation. They also became interested in solar panels in 2000 by creating a space for them. In 2023, they plan to present the objectives pushed by the European Commission related to carbon neutrality by 2050.

The CEO of the company that hosts Batibouw, Frédéric François, says the show has a role to play in the evolution of the construction sector. Indeed, this will allow the construction sector to reduce its waste production, energy consumption and greenhouse gas emissions, he says.

In order to offer a sustainable show next year, Batibouw will not install 30,000 square meters of carpet in the aisles. Instead, they will reuse signage, sort waste more carefully and generate less plastic. Additionally, organizers will select exhibitors based on the sustainability of their products and services.

By shortening the duration of the show, exhibitors will consume less electricity, heat and travel. The organizers of Batibouw claim that this will have a positive impact on participants with more qualitative contacts. They claim this shortened length is in line with many other shows of similar size.

Zone d’Inspiration du salon Batibouw 2024

To continue the momentum of the 2020 show, there will be a new inspiration space. A space where exhibitors’ products are displayed, allowing future builders and renovators to find inspiration for your home.

Batibouw and your personal loan

You can finance your expense with personal credit, an installment loan or consumer credit. Use our simulator by specifying the nature of your project.

Your mortgage credit

During the duration of the show, we have special conditions in terms of mortgage credit, renovation credit, works credit. Find out now!

The work credit allows you to make the necessary renovations to a house. Whether it is to beautify it, enlarge it, make it more comfortable or optimize its energy performance, it is important to prepare your work file well to hope to obtain financing.

The file creation stage deserves all the attention, whatever the nature of the loan requested. Even if the borrower has the choice between the different forms of work credit available, he must not forget that the ideal loan is the one that best corresponds to his profile and his financial situation.

The essential documents to obtain a work loan

A carefully established work credit file is already a big step towards obtaining the loan.

Among the documents that must make up this file are:

the authentic deed, intended to justify that the building being the subject of the work actually belongs to the borrower. Most of the time, this is a property title or, failing that, an extract from the property tax roll issued by the competent authorities.
Copies of the identity cards of the debtors or guarantors, if they exist, must be attached to this file for a work credit.
It is also important to request a quote from the professional responsible for carrying out the planned repairs and attach this document to the file.
To complete the file, proof of the borrower’s income, that is to say the last three salary slips accompanied by a bank account statement, must be provided to the bank so that it can define the repayment capacity.
Finally, if there are outstanding loans, it is imperative to inform the credit organization by means of supporting documentation.

Other tips and recommendations

To help the borrower properly prepare their work file and compare the different offers, there are free online simulators including the one we offer on each page of our site. It will allow you to obtain all the details about your credit, including fees.

If the work to be carried out is significant, it is wise to use the services of an architect. This can, in fact, bring together all the quotes from several service providers and offer the best choice. It can also harmonize the various projects to avoid any loss of time and money.

It is also recommended to be present on the construction site as often as possible so that you can react immediately in the event of a problem. You must also remain very vigilant when receiving the work and not hesitate to express reservations.

For more information :

Consult this page to discover our “work credit” product
Also consult our article on the Breyne law

To calculate the financing for the acquisition of a new car, the simplest way is to use a simulator. On the CPE website, you have a powerful tool that allows you to find out the amount of your monthly payments in just a few clicks.

This solution offers the possibility of quickly sending your credit request for study and processing. Of course, only your signature on a loan agreement marks your commitment.

Using the CPE Site Simulator

The simulator offered by CPE is easy to use, just fill in the fields marked with an asterisk. You can leave other fields blank. If necessary, a CPE broker will contact you for additional information.

The first step in using the simulator concerns the characteristics of the credit requested. For a new vehicle, you must choose the “vehicles” option and then “new car”. You must then specify the price of the car and select the amount of monthly payments or credit duration that suits you best. The second page is related to information about you. If you are applying for a loan for another person, the co-borrower’s personal details must also be entered.

On the third page you give the characteristics of the vehicle. You then go to the fourth page dedicated to receiving your contact details. You still have to complete the fifth page relating to your professional situation before arriving at the last page which lists the financial information concerning you.

Choose a loan according to the type of car

Generally, a car loan is repaid between 12 and 84 months. In Belgium, credit organizations take into account the age of the vehicle to be acquired to set their interest rate. Up to 2 years old, the automobile is considered new and therefore benefits from a more advantageous rate than a used vehicle.

Also note that you can opt for car financing with residual value. This type of credit is advantageous if you want to resell your vehicle when your credit is finished.

There are undoubtedly many of you wondering how and by whom the interest rates that affect your credits in Belgium are set. This is what we will examine in a very simplified way in this article.

From the outset, we can say that the interest rate is truly the crux of the matter for prospective borrowers. In fact, this is the first thing that the customer will look at and this is normal because the amount of their annual repayment will essentially depend on the interest rate. However, we will see that this is not the only criterion to which we should pay attention.

1.The difference between the APR and the interest rate

The annual effective rate, abbreviated T.AE.G, is the interest rate which affects a consumer credit or an installment loan.

When it comes to mortgage credit, we talk about interest rates.

2.How are the amount of the APR and the amount of interest rates determined?

The minimum and maximum T.A.E.G. are determined by law. They are therefore not left to the discretion of your bankers. Note that a credit intermediary that is not a financial institution has very little power in this matter apart from its commission.

Since February 1, 2007, a new method has made it possible to set the maximum overall annual effective rates.

At the end of March and the end of September, we examine whether the maximum percentages will be adapted, following a minimum modification of the reference indices of 0.75 points. The reference index for opening credit is the monthly average of the three-month Euribor interbank interest rate. The new maximum overall annual effective rates come into force on the first day of the second month following the month of their publication in the Belgian Official Gazette.

Regarding interest rates: several key factors are behind the calculation of the rate, risk management and the duration of the loan in particular. A credit institution increases its interest rates according to the risks it incurs for a loan extending over time.

3.Why are interest rates much lower than APRs?

To simplify, the difference in rates between the two types of credit is explained firstly by the notion of guarantee requested from the borrower for real estate loans: mortgage, guarantee or privilege of the lender of funds which greatly reduce the cost unpaid debts. In terms of mortgage credit, the bank takes a mortgage registration on your house and therefore has a guarantee of choice. As a result, it can afford to grant lower interest rates.

4.What are the main interest rates?

Interest rates vary both depending on the type of credit but also depending on the length of the repayment spread over time and the guarantees offered by borrowers.

It is obvious that the longer the duration of the loan, the lower the interest rate will be.

Likewise, the greater the guarantees offered, the lower the interest rate will be.

Here are a few different APR categories:

·New car financing (around 4%)

·Used car financing (around 7%)

·Work financing (around 5%)

·Consumer loan (around 9%)

·Mortgage credit (around 4%)

· …

Our credit simulator on our website is a valuable tool in this regard and provides you with total transparency.

5.Is the interest rate the only element I need to pay attention to?

No, the prospective borrower should also distinguish between variable rates and fixed rates. Very often, loans with variable rates primarily focus on the repayment of interest, while loans with fixed rates prioritize the repayment of capital. The latter are of course always slightly higher but are more concerned with the interests of the consumer who repays their capital more quickly.

6.How to explain the difference in interest rates between credit brokers?

The amount of interest rates being determined by law, it is essentially the broker’s commission that will make the difference.

The CPE offers you unique credit assistance in Belgium. Meet our team now.

At Crédit Populaire Européen, our brokers take your consumer credit application or your mortgage loan application in several languages: we process our files in Dutch, English, Spanish, Portuguese and Italian!

Furthermore, we welcome you to Mons, Arlon and Luxembourg. In some cases, our brokers can even come to your home.

We have our files signed in Mons every day, in Esch-sur-Alzette on Tuesday and in Arlon all day on Friday.

Our team is available every day of the week, including weekends. We answer the phone all the time.

But did you also know: our team offers you a range of unique services: from economic and financial advice to legal assistance. We have a lawyer on staff to whom you can ask any legal questions that pose a problem to you. A simple visit to our blog will allow you to see the level of quality, regularity and timeliness of our financial advice.

At CPE, you are in the hands of a serious, competent and diligent broker! Enough to start 2014 reassured!

Our entire team wishes you a happy Christmas Eve!

bank

Before the adoption of the banking mobility service, changing banking establishments was a real ordeal for users. Banks were reluctant to let their customers leave for competitors and increased obstacles to force them to stay.

Thanks to the banking mobility service, it is now easier for the customer to change banking establishment, because the formalities are simplified and the deadline is set at 8 working days.

How to change banks?

The launch on November 1, 2009 by the Belgian federation of the financial sector (Febelfin) of the banking mobility service facilitates procedures for changing banks. This solution requires the old and new banks to agree on the details regarding the transfer of the account.

All you need to do is open an account in a bank of your choice, request a bank mobility form and complete it. From there, the new bank takes care of everything within an average time of 8 days. However, it is important to clarify whether you want to completely close your account with the old bank or if you wish to keep one or more of its products.

Permanent transfers

In the event of a total transfer of standing order transactions, the new bank takes care of everything. You must ensure that all permanent transfers are made before switching to the new account, otherwise you risk seeing a transaction refused. In case some transactions remain in the old bank, you simply need to cancel the standing order you wish to transfer and create a new one on the recently opened account.

What about direct debits if you change banks?

If all direct debits are transferred to the new bank, the latter takes care of all the formalities. The partial transfer of domiciliations is more complex, because it is necessary to distinguish domestic (Belgian) domiciliations from European domiciliations.

For the first case, it is necessary to close the domiciliation in the old bank and submit a request for Belgian domiciliation on the new account. It is up to the new bank to carry out the rest of the procedure. In the second case, you must first notify your creditors by letter of the change in the direct debit account. Each of them will send you a new mandate that you will sign and return to them by mail. It is up to each creditor to settle the formalities with the bank.

What are the costs to expect?

The banking mobility service is completely free. However, fees may be incurred if you close a term account or transfer a securities account. Likewise, your loyalty bonus is canceled from the moment you make a transfer from your savings account.

Acting as guarantor for a mortgage loan to enable a loved one to obtain credit to buy the house of their dreams is a noble commitment, but the scope of it must be carefully measured beforehand.

Indeed, acting as guarantor means agreeing to honor the borrower’s debts to the credit organization in the event of inability to pay.

As guarantor of the total repayment of the loan, the one who acts as guarantor at the same time commits his property if the subscriber of the real estate loan obtained cannot, for any reason, pay off his loan.

How it works ?

The bond is governed by article 1123 of the Civil Code. It is, in principle, established by means of an act signed between the person acting as guarantor and the bank itself. It is important that the guarantor and his responsibilities appear clearly in the annex or in the loan contract.

In certain cases, using the services of a notary can be useful. This professional is able to draw up the guarantee document and is able to make the guarantor aware of the extent of his commitment. At the end of the transaction, each party receives a copy of the document carried out.

Becoming a guarantor for a mortgage loan is not a decision to take lightly. The consequences can be serious since, just like the borrower, the guarantor puts his own assets and income at stake.

Simple or joint deposit?

It is important to differentiate between a simple and joint guarantee before committing. The simple guarantee is characterized by the fact that the borrower remains primarily responsible in the event of non-repayment of his debts. In this case, the bank must contact the borrower before requesting the intervention of its guarantor.

When the guarantor is qualified as joint, this means that the guarantor has made a joint and several commitment to the loan and the bank can therefore approach both the borrower and his guarantor. Although the simple guarantee protects the person acting as guarantor from possible abuse, you should know that banks can require a joint guarantee when taking out a loan.

The commitments of the credit organization

As part of a mortgage loan guarantee, banks and other credit institutions also have legal obligations. The guarantor must specify his commitment through a handwritten note on the contract.

It is also up to the credit institution to keep the guarantor informed of all the important details concerning the credit and to inform him of the progress of the reimbursement or of any payment incident, if applicable.