Social bank

When you think of social bank, you randomly think that it is easier to get a loan. Is this correct? What is a social bank and where can you find it?

Social bank is affiliated with debt counseling
Social Banks Netherlands (SBN) is a partnership between municipalities and 24 social credit banks. They are all affiliated with the Dutch Association for People's Credit (NVVK), which is an umbrella organization for debt counseling. In total, 90 social institutions and companies are affiliated with the NVVK. The members have a social objective and are not focused on achieving maximum profit like the ordinary banks.

Who can borrow money?
The conditions for getting a loan from the social bank are different from the normal bank. People can go there if they earn less than 130% of the gross minimum wage. As of July 1, 2017, the minimum wage for someone aged 23 and older is € 1,565. If you do this x 130%, the limit to borrowing from a social bank is € 2035 gross. People with a BKR listing, problematic debts and a temporary residence permit can also contact the social bank. If you are a self-employed person or entrepreneur, you cannot borrow money, but you have to look for a commercial bank. Only individuals with a low income qualify for a cheap loan.

Not all applications will be accepted. The social bank also wants to see its loaned money back. They do not have to make a profit, but they also cannot suffer a loss. An application is therefore carefully examined. The maximum loan amount depends on personal circumstances. The minimum loan is USD 500. The maximum is several thousand euros. The repayment is in flexible monthly installments with a low interest rate. The maximum term of a social loan is 60 months.

Fines waived?
A fine of € 225 or higher may be paid by the government in installments. There are plans to apply this also to several smaller fines that together have a value of € 225 or higher. Forgiveness is only possible with a voluntary debt restructuring where you are placed under strict supervision.