With this article we inform you about the ‘duo credit’. This is a credit that offers the best of 2 worlds, as it were. Banks use different terms for this credit. For example, the double credit is also known as a combination loan or personal credit. Below we tell you more about this type of credit.
What is a double credit?
With a duo credit or combination loan, you can use the advantages of multiple loans in 1 loan. So you borrow at the very best conditions and at low rates. The bottom line is that you can combine all the benefits of different loans. This actually provides you with something. For example, you may be able to borrow more money (a higher loan amount), but on much better terms. You cannot take out a duo credit from 1 provider. You take out a small loan with several loan providers. All these amounts together form 1 large loan. Because lenders spread the risk, they use less risk premium. This way you can borrow much cheaper.
Combination loan is a personal loan and revolving credit
The combination loan, as we also call the duo loan, has both the advantages of a personal loan and of a revolving credit. Personal loans are known as very clear loans. The interest is fixed and the same applies to the amount of the loan amount. Therefore, it is possible to pay off the loan in fixed installments and within a fixed term. You will receive the total loan amount in one go on your account.
With a revolving credit, however, you can withdraw and repay whenever you want. This way you can always make an accelerated and penalty-free repayment. You can also withdraw the money you repay at any time. In other words: You decide how long you want to pay off.
Few providers of combined loans
Up to now, you can only go to a maximum of 2 lenders in the Netherlands for a duo loan. It is also a fairly new type of loan that has not been widely publicized.