A social loan is a special way of borrowing for lower incomes who otherwise unable to obtain loans but need money urgently.
A social loan can be used to public finance a home or simply use and is especially known in Belgium. Banks in the Netherlands provide Social Netherlands (SBN) social lending.
This Social Netherlands Banks are a collaboration between commercial banks and 14 regional social work without profit. So cheap loans but lend responsibly for a useful purpose.
A loan for a new television, or borrow money for a holiday will not be able to SBN. These loans are therefore only provided to low income (up to 130% of the applicable minimum gross wage).
SBN calculates a rate, but this will be much lower than with a commercial bank.
Advantages
Very low interest rates and good guidance.
Only borrow money for much needed business.
Disadvantages
Only for very low income.
Only borrow money for much needed business