A not insignificant part of Belgian legislation relates to the financial market and more specifically to taking out or granting a loan. Generally speaking, you as a borrower should not really take this into account. All laws are always included in the credit agreement that you are presented with, so that it is immediately clear which provisions you must adhere to as a borrower and what the lender is responsible for. Borrowing legislation Belgium is regularly reviewed and its purpose is to protect consumers who borrow money. See ewtosanmarino.com for an example
Abuse of consumer credit
An important part of Belgian legislation relates to the so-called consumer credit. People nowadays have the option to make almost every purchase they make on installment. That means that you have the option to purchase various products or services without having to have the required amount. At first sight that is of course very interesting if it weren’t for many people to get into financial difficulties this way. Precisely for this reason, taking out consumer credit is nowadays subject to strict rules and stores or other parties that offer this must clearly state that borrowing money also costs money. This also applies to online lenders, for example. They are also legally obliged to add this rule to their website.
Borrowing legislation for lenders
As stated earlier, the legislation in Belgium focuses primarily on lenders. For example, the law stipulates that a lender may not grant a loan that could cause irreparable damage to the borrower’s financial situation. In practice, that means that you, as a borrower, must always be able to demonstrate that you have sufficient financial resources to repay the loan amount without any problems, even if, for example, you are confronted with a financial dip. It is precisely for this reason that lenders always request a clear picture of any savings and current investments. In any case, it may be clear that the legislation on borrowing Belgium focuses in particular on protecting the Belgian borrower, and that can only be called positive.