The instalment loan is any credit contract for which a sum of money is placed at the disposal of a client by a bank or another credit agency in Belgium. The client undertakes to redeem the loan through regular payments according to a set per-month timetable and a fixed rate defined in the contract.
The instalment loan may more commonly be called a “personal loan”, or “consumer credit”. Many banks may also sometimes refer to it as “car credit” or “home improvement and/or renovation credit”. All such various loans or credits are therefore instalment loans.
An instalment loan must therefore include the following characteristics:
- The loan, placed by a lender at the disposal of a borrower, of a fixed amount
- The repayment of that amount over a period that is mutually agreed in advance
- According to a set (per-month) timetable
- And a fixed rate of interest.
It should also be noted that, in Belgium, consumer credit, or the instalment loan, is generally strictly regulated
Definitions provided under this section refer to the Belgian situation; unless specified otherwise. The texts are meant to summarize concepts in daily language and should not be considered as comprehensive or definite. We welcome suggestions for modifications or additions at email@example.com.