Instalment loan

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


Updated 21/11/2018

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