An assessment required by law
The Consumer Credit Act requires the bank to assess your capacity to take on credit. The aim is to prevent over-indebtedness: granting credit is prohibited if it leads to the consumer's over-indebtedness (art. 3 UCA).
The 36-month rule
Your borrowing capacity is considered sufficient if you can repay the amount borrowed within 36 months without touching the part of your income that cannot be seized. This rule applies even if you choose a longer repayment term.
The minimum subsistence income
The calculation starts from the minimum subsistence income defined under debt enforcement law, i.e. the amount you need to live on given your family situation. Only the part of your income above this minimum can be used for repayments.
The expenses taken into account
The bank adds up your fixed expenses to determine how much you have available.
- Rent or mortgage costs
- Current taxes
- Health insurance premiums
- Maintenance payments
- Ongoing loans and leases
- Professional expenses, such as commuting
How we help you
We draw up your budget with you before any application. That way you know what amount is realistic, and you avoid an application that is bound to be refused.