What rights do I have when I take out credit?

When you take out a loan, the first thing we advise you on is choosing the right loan for your needs. We respect your right to information and provide you with standard European information about your credit and a draft of the contract you will sign. 

➤ Before signing the contract you can ask for existing offers to make an informed decision, to compare between product types or between products with different interest rates. 

➤ You have the right to ask for an offer including:

✅ European standard information 

✅ a copy of the credit agreement 

✅ a repayment schedule

➤ You have the right to choose to repay the loan in equal decreasing instalments.

➤ You have the right to repay the loan early, in full or in part. 

➤ If you or your spouse are in one of the following situations: unemployment, a minimum 15% reduction in salary or death, and this has caused you to fall into arrears, you are entitled to a lower penalty interest rate. To qualify for a reduced penalty interest rate, you must provide us with documents proving your situation.  

Good to know: The reduced penalty interest rate cannot be more than 3 percentage points higher than the interest rate applied when the credit is not in arrears. 

➤ You have the right to receive a reply in writing, or in another form of your choice, regarding the granting or refusal of credit. We will give you a reply within 30 days of full submission of the credit application documents, but no later than 60 days from the date of submission of the initial credit application.

What should I consider when applying for a loan?

First you should think about the type of credit you need: consumer, mortgage or real estate?

The type of credit recommended starts with your need:

➤ if you need money for expenses you don't want to justify, we recommend personal or consumer credit

➤ if you want to buy or build a property that you can also use as collateral, then we recommend a mortgage loan

➤ if you want to buy or build a property and you want to secure the loan with another property, then we recommend the mortgage loan.

What is the actual amount I need and what rate can I afford to pay monthly?

The actual amount you need is based on your need, and the rate you can pay monthly is that amount calculated according to your income level (yours or someone who can vouch for you, called a co-signer) and the level of average monthly expenses you have (or have with your co-signer, if applicable).

What type of interest rate does the credit I choose have: fixed or variable?

The fixed interest rate remains at the same level throughout the loan period. So you know clearly how much you have to pay each month. The variable interest rate changes according to the reference index (ROBOR, EURIBOR, LIBOR, etc.). These indices can go up or down and influence the interest rate by increasing or decreasing it.

Do I have the right to waive my credit?

As with any good or service, there is a certain period of time during which you can cancel your credit without having to justify your decision.

So, if the contract has been signed, but for various reasons you no longer want the credit, you can cancel it. After signing the contract, you have a period of 14 calendar days in which you can automatically withdraw from the contract. This is done by notifying the bank and returning the part of the credit that has been drawn down, if any, and the interest on it.

What obligations do I have if I want to cancel the contract within 14 days?

➤ Notify the creditor in writing. 

➤ Pay the lender the loan or portion of the loan drawn and the related interest from the time of origination to the date of repayment.

If you're thinking of taking out a loan, you can calculate your monthly repayments online in the BT credit simulator and then find out over the phone if you're within the amount you want. 😉