When you are on social assistance it is often difficult to make ends meet. The smallest debt can already have major consequences for your financial household. A social assistance benefit is based on the minimum amount that a household can make ends meet. The extra pressure of repayment and interest is often just too much, so that you can no longer make ends meet.

We therefore do not recommend borrowing money when you are on social assistance. But sometimes it simply cannot be otherwise, for example when your central heating boiler stops or the washing machine breaks down. If you are in social assistance, then only borrow if it really cannot be otherwise and it is absolutely urgent.

Borrowing money if you are on social assistance – Municipal credit bank

Borrowing money if you are on social assistance - Municipal credit bank

What you could possibly try is to apply for a loan from the municipality. Indeed, there are some municipalities in the Netherlands that provide loans to people who cannot go anywhere else. These municipal loans are no cheaper than loans from banks or lenders. You just pay a market rate here. So consider carefully whether you can do this and whether you are willing to pay.

Borrowing money with social assistance benefit – Beware!

Borrowing money with social assistance benefit - Beware!

Banks and lenders in the Netherlands are bound by a code of conduct. This means that they do not provide loans if it causes people financial difficulties. However, if you are on social assistance, there is a good chance that you will get into trouble by borrowing money. Therefore, there will not be many reliable banks and lenders who provide you with a loan. You can certainly find providers on the internet who want to borrow your money, but please be aware of that. In addition to the many scammers that are active, the other parties often charge a high interest rate, so that you end up in the rain. The loan will then hang around your neck like a millstone.

Assistance loan – Private loan

Assistance loan - Private loan

Are you on social assistance and want to borrow money in one way or another? Then a private loan with friends or family is also an option. Even then, of course, you simply pay interest in line with the market, but the advantage of private lending is that you determine the preconditions together with the lender. For example, you could repay a private limberness over a longer period of time, so that you spend less every month. Make sure that you record all agreements in black and white in a loan agreement. This provides clarity on both sides. The last thing you want is arguing with friends or family about borrowed money.