Stricter Lending Standards for Revolving Credit

From 1 May 2019 the maximum term for a revolving credit is 15 years. This is one of the changes in the code of conduct for consumer loans.


Duration of revolving credit maximum 15 years

Duration of revolving credit maximum 15 years

Whoever takes out a new revolving credit next year will have a maximum duration of 15 years. This is one of the changes made by the Financing Companies Association in the Netherlands (VFN) in its code of conduct. Affiliated loan providers follow this code of conduct

Now the term of a revolving credit is still variable. You can withdraw the repaid amount again. A revolving credit is useful as extra spending room, but at the same time this is a pitfall. Because the loan is not automatically terminated, it requires discipline to become debt-free again.

If you do not use a revolving credit as extra spending room (small amount, short period), you better opt for a personal loan.


Multiple test moments during the term

credit term

It has also been agreed that in the case of revolving credit facilities it is regularly checked whether the outstanding amount still fits the financial situation of the customer. If this is no longer the case, a solution will be sought together with the customer.

In the most extreme case, the revolving credit can even be blocked for readmissions, for example in the case of a backlog of other credits. This must also prevent customers from becoming ‘locked up’. Which means that they can no longer switch with their revolving credit to another lender.


Revolving credit has been under magnifying glass for some time

Revolving credit has been under magnifying glass for some time

Earlier Saveryt Bank put a brake on the provision of revolving loans. The market leader for borrowing money will maximize the borrowing amount for new revolving loans at 15,000 euros. And with a monthly installment of 2% of the credit limit, new customers are forced to pay off.

The revolving loans from Saveryt Bank have been under a magnifying glass for some time. For example, the Keisha consumer program regularly paid attention to the high lending rates that Saveryt Bank sometimes charges

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