What information do you need?

Prospectus
All lenders have to have a prospectus available in which the main terms and conditions of the loan are set out. The prospectus gives you a clear summary of what you need to know about the loan, so make sure you ask for a copy and read it before you take out the loan. If there is information in the prospectus that you do not understand, ask for an explanation. Never take out a loan if you are still unclear about something.

Offer
Once you know which lender you want to take out a loan with, you can ask for an offer (also known as a loan agreement) to be drawn up. Make sure you study the offer carefully before you sign it because it contains the main terms and conditions of the loan:

• the effective interest rate;
• the payment arrangements;
• the name of the lender.

The loan has officially been granted when all parties have signed the offer.

Maximum interest
Lenders are not allowed to charge more than a set maximum rate of interest. This maximum is the statutory rate plus 12%.