A restart loan is an option for those who have payment concerns or poor credit rating for some other reason. This is a loan that is specifically aimed at this type of borrower. For this reason, there are a number of conditions that must be met in order to be able to borrow money.
To borrow money, security of some kind is required. This allows the lender to feel secure in repaying the money as planned. Should this not happen when there is security, then the lenders have some way of getting money in.
The first option is if you own a home that can be used as collateral for the loan. The home then goes in and secures the lender’s money which allows them to lend. The housing can be paid up to 85% of the value. If you use a home as collateral, you can expect the interest rate to be tied up in a year and then be variable after that. This means that you will be able to pay interest rate compensation if you wish to settle the loan for the previous year.
A guarantor can also enter as collateral for the loan. This person will then be repayable for the loan if you do not follow the repayment plan. Therefore, it is important that the person entering the guarantor is fully aware of your financial situation so that there will be no surprises later. The guarantor must have a good economy himself, which means, for example, that there must be no payment remarks. The guarantor should also not be included in the same household as the borrower.
A little bit more expensive
Unfortunately, you can expect that a restart loan is a little more expensive than a loan would have been if you had no payment notes. But if you have other debts, for example, it can be a good way to get money together to settle the other much more expensive debts. Important is that the borrowed money is used for something good.