The choice to borrow money raises the question: which loan is the best loan for me? Do I opt for a personal loan or a continuous loan?
Both loans have advantages. For example, a personal loan offers security. You borrow a fixed amount at a fixed interest rate. The alternative is a continuous loan.
Continuous loan = loan?
The difference between a personal loan and an ongoing continuous loan is already in the name. The word “continuous loan” is approximately interchangeable with the word “loan.” But for a continuing continuous loan, only the amount withdrawn counts as a loan. You therefore pay interest on it, not on the entire continuous loan amount.
Pay interest on withdrawn money
I can imagine that it went really fast. Just a step back.
By concluding your ongoing continuous loan you agree a maximum amount with your continuous loan provider. Up to that maximum amount you can withdraw money from your continuous loan whenever you need it. You pay interest on that amount withdrawn. So that’s actually your loan.
What you pay per month for your ongoing continuous loan is usually the same every month. That way you can keep track of your expenses.
But a continuing continuous loan has another striking feature: a variable interest rate. This means that the interest that you pay for your loan may change. Your interest is based, among other things, on the current interest rate. If the interest rate rises, then your interest rate rises. If the interest rate falls, you benefit from the lower interest rate.
Pay off without penalty
A personal loan often costs extra repayments in the meantime. It works differently for a continuous loan. You cannot just record your continuous loan free of charge. You can also pay off your loan free of charge whenever you want.
Continuous continuous loan offers flexibility
It may be clear: a continuous loan offers flexibility. Money in hand for the times when you need it. Pay off your loan without penalty when you have more financial means.
Interested? Request a quote from continuous loan. Our continuous loan specialists are happy to find out what is possible for you.