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There is no longer any civil legal aid available to recover debts regardless of your circumstances. The government abolished that kind of help many years ago.
Where you start proceedings really depends on a number of things such where the loan was negotiated or what juridicaion you opted to deal with any breaches.
Potentially you could start proceedings in the U.K. as your home jurisdiction, serve the other party in Holland and, if you are successful in your claim, you could transfer the judgment to Holland and enforce it there.
This is a County Court claim. You could either deal with the paperwork yourself or instruct a lawyer who will quote a fee in advance or you might be able to instruct somebody on a contingency arrangement e.g. they receive a portion of any sum you require usually around 25 - 30%.