Revolving Credit
Revolving credit offers Delft residents a flexible borrowing option with a credit limit from a bank or lender. Within this limit, you can withdraw funds as needed—for example, for home maintenance in historic central Delft. Once repaid, the available amount is restored. Interest rates fluctuate, with minimum monthly payments required. It's ideal for unexpected costs, but discipline is essential to keep interest charges low.
What does revolving credit mean for Delft residents?
With revolving credit, the lender provides a maximum limit without requiring you to draw it all at once. Withdrawals are flexible via transfer or card, and repaid amounts become available again. Unlike a personal loan, it has no fixed end date and continues until terminated by you or the bank.
In Delft, banks and credit providers offer this with limits from €2,500 to €50,000, based on your income and BKR check. Example: As a Delft resident, you draw €3,000 from a €10,000 limit for a new bike or repairs after the Delft Storm. You repay €150 monthly (interest + principal), freeing up that space again.
Legal rules for revolving credit
Revolving credit is governed by consumer law under the Financial Supervision Act (Wft) (Section 4.7, art. 4:200-4:287) and Civil Code Book 6 (art. 6:237-6:250). Under the European Consumer Credit Directive (2008/48/EC), since 2011, lenders must provide an ESIC (European Standard Information on the Credit Agreement) detailing interest, duration, and costs. For loans up to €75,000, unfair interest clauses are prohibited (art. 6:237(2) CC). The AFM oversees compliance; for issues, contact the District Court of The Hague.
Differences from other loans
Revolving credit offers flexibility but is costlier due to variable rates. Comparison:
| Aspect | Revolving credit | Personal loan | Flash loan |
|---|---|---|---|
| Interest | Variable (often 6-12% effective) | Fixed (often 4-8% effective) | Very high (up to 14% per month) |
| Repayment | Flexible, minimum monthly | Fixed monthly amounts | Within 30 days |
| Term | Continuous, no fixed end date | Fixed (1-10 years) | Short (max 30 days) |
| Withdrawal | Repeatedly possible | Once only | Once only |
| Max amount | Up to €75,000 | Up to €75,000 | Max €1,000 (since 2021) |
Read more about consumer credit and personal loans.
Rights and obligations for revolving credit in Delft
Rights of Delft residents
- 14-day cooling-off period: Cancel free of charge (art. 6:230m CC).
- Pre-contract info: ESIC with APR (art. 6:230g CC).
- Early repayment: Max 1% penalty (art. 6:239 CC).
- No unfair penalties for arrears.
Your obligations
- Repay at least 2% of balance + interest monthly.
- Provide accurate income and debt information.
- BKR registration for new credits.
Lender's obligations
- Risk assessment (art. 4:250 Wft).
- Monthly balance statements.
- 1-month notice period (art. 6:249 CC).
Real-life cases from Delft
Case 1: The Jansen family from Oude Delft opens a €15,000 credit line. They draw €4,000 for roof repairs. At 8% interest: €32 interest + €80 repayment. Later €2,000 for a Marktfeest holiday; flexibility helps, but interest adds up.
Case 2: Mr. De Vries loses his job at TU Delft and misses a payment. The bank grants deferral after discussion; otherwise, collection and BKR issues follow.
Case 3: Ms. Smit exceeds her limit (overdraft 14%). Using statements, she complains to the bank and AFM; interest corrected.
Tips for Delft residents
Avoid trouble:
- Compare: Via Independer or AFM register.
- Check BKR: At bkr.nl.
- Budget: Only borrow what's needed; extra repayments save money.
- Keep documents: ESIC and statements.
- Seek help: Delft Legal Aid Office, Municipality of Delft debt assistance, or District Court of The Hague.
- Alternatives: Save or take a personal loan.