7 x Borrowing money with a benefit

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borrow money with benefit from UWV

Do you want to take out a loan, but are you wondering whether this is possible because you have benefits ?

In the end, a lot is still possible, whether you receive a contribution from the social insurance such as social assistance ...

... or a replacement income because you have become (partially) incapacitated for work.

We list the options for you.

Please note: we have a separate article about borrowing during AOW / retirement .

In this article:

No difference up to 2000 US dollar

To begin with, we would like to discuss the so-called mini loan, which is sometimes also referred to as flash credit. This type of loan, where you can borrow an amount from 100 to a maximum of 2000 US dollars, is very different from the other types of credit in the Netherlands.

You can apply for this with just your ID (passport / driver's license) and without any other documentation. They will therefore not look at your income or payslip and therefore not whether you may receive benefits. They don't even do BKR testing . The parties in the Netherlands where you can arrange this, with AFM recognition, are Money Now or Saldodipje.nl

The reason that you can apply for these loans so easily is that the relatively low amount also reduces the risk for the providers. With that, they dare to ask you less difficult questions , because paying back is less difficult than if you borrow tens of thousands of US dollars.

The application is so simple that you can have it completed in just 5-7 minutes. This is often approved very quickly and the money will be in your bank account within 24 hours . Please note that the terms are quite short, varying from only 15 days to 4 months. This in turn has the advantage that the absolute interest costs are not that bad compared to loans that run for years.

For example : You take out a mini loan of 500 US dollars. The term is then 30 days. Then you pay back the entire amount in 1 go + 2.47 US dollar effective interest.

Keep in mind that you really have the money to be able to pay back by then. It is of course a short period and that makes a mini loan / flash loan ideally suited to bridge such a period, but that's all really.

For example, if you are already going on holiday and want to buy that new backpack and can pay it back because you almost get a bonus or holiday pay. Do you understand? Repaying too late is not an option, then additional interest or even fines will be involved.

Simply request quotes

If you still need more, and we mean everything from 2,500 to 75,000 US dollars, you will still end up with a personal loan or a revolving credit . With many benefits, there are quite a few lenders who want to borrow money. They are allowed to know this themselves and will therefore differ per provider.

That is why we encourage you to simply request quotes! Don't be fooled and just try out a number of providers. No you have, yes you can get! Below you can see a real-time overview of the lowest loan interest rates at the moment. You can click directly to the provider to make an application.

Via the button “all loan interest” you can make even more specific and more extensive comparisons for certain types of loan or, for example, car financing. Below we provide more detailed information per type of benefit on how this is generally dealt with.

Borrowing from unemployment benefits (unemployment benefits)

If you are in the Unemployment Insurance Act, it is often very difficult to get a loan. This is because your income is temporary. The unemployment benefit is a finite payout that is only intended to bridge a period of time to find new work. It is after all employee insurance .

And that new job shouldn't take too long ... and the mere fact that this benefit ends at a certain point means that most lenders find the risk too great that you will not be able to repay in the long term. But does your unemployment benefit run even longer than the desired term of a loan? Then be sure to request quotes via the above rate comparator, because then you have a good chance that it will work! And what also works is the mini loan .

Borrowing with Social Assistance Benefit (WWB)

After your unemployment benefit you will be back on welfare. This is not a fat pot and it is not surprising that lenders never actually do business with this. After all, social assistance is a social safety net with a very minimal income. It is therefore a social facility . In fact, the only options here is the aforementioned mini loan .

Borrow money with WAJONG benefit

The WAJONG is a national insurance policy , unlike the WW and WWB. This is especially intended for people who have (contracted) an illness or disability before their 18th birthday or during training / study and are therefore no longer able to work.

Because with this insurance you are relatively certain of your monthly income, providers often want to offer you a loan here, where they often charge 70 - 80% of your income to cover some risk. That is for both parties! Use the above interest overview to request a quote. As an alternative up to and including 2000 US dollar, the mini loan will always remain.

Borrowing in case of incapacity for work (WAO / WIA: WGA / IVA)

If you are (partially) incapacitated for work, this means that you will first receive up to 2 years of continued payment of wages from your employer. Then you fall into the Income according to Labor Capacity Act. As of 2004, this is a new replacement act for the Incapacity for Work Act.

Whether you can take out a credit with this varies greatly per situation . If you are partially rejected (WGA) then you also have a good part of your income and you will often be able to go somewhere. If you are no longer able to work at all (IVA), the amount and duration of your benefit will be considered. Here too, it applies again: mainly request quotes via the above interest deals, or go for a mini loan .

Borrow money under the Sickness Benefits Act (ZW)

If you become ill and you have a job, you will first be paid by your employer for another 2 years . But if you don't have one when you become incapacitated for work, you will first be in the ZW for the first two years.

Just like the unemployment benefit, this is a temporary benefit, but two years is still quite a long term in which you may already pay off a loan. Again, it depends on your specific situation and we recommend that you simply request quotes! And a mini loan fits within those two years anyway ...