Refloating a personal loan, how does this currently work, and what are the options?

Refinancing your personal loan can save you a lot of money. In fact, more than 75% of people borrow too much. Refinancing your personal loan can, in many cases, ensure that you no longer belong to this 75%. But what should you pay attention to when you want to refinance your personal loan? What are the possibilities to make your loan more affordable?

Check your current interest rate

Do you currently have a personal loan with an interest rate of 5% or more? Then chances are you’re paying too much interest at the moment. Refinancing your personal loan can bring you immediate benefits. And can ensure that you save hundreds of euros or more per year.

How much does refinancing a personal loan cost?

In most cases, refinancing a personal loan has become free and you no longer have to pay a penalty. The banks now accept their loss of interest after you decide to refinance your loan.

Switching and paying penalties

A personal loan cannot always be repaid without penalty. When you took out your loan, you signed up for a certain amount of interest that the lender would receive from you for the term of the loan. If you suddenly want to shorten that term by repaying the loan and closing the deal, then the lender will miss out on the amount of interest. They have come up with a solution for this: a ‘penalty’.

It is therefore good to calculate how much you will save when you will refinance your personal loan. Is this amount after a few months already more than the penalty you will have to pay, then refinancing is definitely worth it. You will see that it is especially worthwhile to switch your personal loan when you still have most of the loan term ahead of you.

If you have almost paid off the loan, you will lose more money if you have to pay a penalty than if you keep the loan for a few more months. In Germany they even have a few rules for these types of loans.

Converting a personal loan

You take out a personal loan for a longer period of time. Therefore it is possible that during those years something has changed in the composition of your family or your income. Then the personal loan you took out at the time no longer suits your current situation. Or you would like to take out a loan at a lower rate, in which case you can also decide to switch the loan.

Converting to a personal loan

We mentioned it earlier; do you have a personal loan with a high interest rate? Or did you take out your loan at the time on outdated terms? Then you can choose to convert your personal loan to a new personal loan. That way, you’ll benefit from the current interest rate we have today and get new terms.

Convert to a revolving credit

You can also choose to convert your personal loan to a revolving credit. This is a loan where not everything is fixed in advance. You set a credit limit and within that limit you can withdraw and repay money at your own convenience. You can also dissolve money that you have already repaid once. With a revolving credit you have to deal with a variable interest rate, which can rise and fall during the term. (Read more about the German options here)


When you have multiple loans, you will also pay interest on all of them. Now it is also the case that you pay proportionally more interest for a small loan than for a large loan. Therefore, it may be wise to merge the small loans into one. An additional advantage is that it becomes more manageable when you are dealing with one loan and only one place where you have to pay off.

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