Would you like to buy your own home, but income is too limited to obtain a loan from a bank or other financial institution? Then the social loan can be the solution you are looking for. To be eligible for a social loan, you must of course meet a number of conditions. For example, your income must not be too high, you must be able to repay the loan amount and you must not be the owner of another property or home. Unlike other loans, you take out this loan with a social institution and not with a financial institution. However, the acceptance procedure is broadly the same as with the traditional loan.
Term and interest of the social loan
The biggest advantage of the social loan is the low interest that comes with it. This makes this loan much cheaper than most classic mortgage loans that are offered by banks and other lenders . The term is roughly the same with a minimum of twenty years. This can be extended depending on your file. Together with the social institution, it is calculated in advance how much you can borrow, what the monthly repayments will be and the term the loan will run. Your wages and age have the greatest influence on this.
Waiting times for the social loan
In contrast to most other loans, you can be confronted with a waiting period with the social loan once your file has been accepted. Because this loan is not issued by a financial institution, there is a limitation in the number of people who can use the loan simultaneously. The low interest rates have led to many prospects wanting to build their homes through this type of loan. This popularity has the disadvantage that waiting a few years for the money is no longer an exception. So if you also want to be eligible for a loan from a social institution, it pays to request loan quotes today and submit your application as soon as possible.