Which loan form is the cheapest? Borrowing money, costs money. We all know that by now. But nobody wants to pay too much. The question is therefore: is a personal loan with a fixed interest rate the best option? Or is a continuous loan a more sensible choice because the interest rate is variable?
What is the cheapest loan?
There is no general answer to that question. The interest that you are going to pay depends, among other things, on your personal and financial situation. The amount of the desired loan amount also plays a role.
If you borrow USD 5000, the interest is higher than with a loan amount of USD 25,000. The duration also has an impact. The longer you borrow, the longer you pay interest and therefore your total costs are higher.
Ask yourself; how much money can I borrow? You can enter your details via our calculation tool. Based on this, you will see a loan form with interest, duration and monthly charges. This way you get a global idea of the possibilities.
When you take out a personal loan to carry out the renovation in your owner-occupied home, the interest costs are tax deductible.
A continuous loan does not offer this tax benefit. A personal loan is therefore cheaper than a continuous loan.
Personal loan versus an ongoing loan
With a personal loan, the term is fixed and the interest rate is also fixed. If you take out a personal loan at today’s low interest rate, you will benefit from this low interest rate for the entire duration. You do not suffer from interest rate fluctuations and the monthly amount is fixed.
The interest rate of a continuous loan is variable. If the interest rate rises, your monthly payments also automatically increase. Is the interest rate falling? Then your monthly expenses decrease with a continuous loan. With an interest rate drop you may therefore be cheaper with a continuous loan.
Immediately a cheaper loan
Do you already have a loan, but would like to borrow more cheaply? Then take out your loan and take advantage of a lower interest rate and lower monthly costs. Request a free quote.