In certain situations, a loan can make life easier. They thus bridge a short-term financial shortage or use the credit for the acquisition of consumer goods.
It is also conceivable debt restructuring, in which you summarize several payment obligations. You can also use this to offset an overdrawn credit line. When buying a property, the loan is often part of the financing. Before borrowing, a credit comparison is important. In doing so, you will inform yourself at several banks – also online – about the conditions, the amount of the interest and the term. This will enable you to find the cheapest loan for you.
Apply for a loan online
If you want to apply for a loan, there are several contact points. For example, your house bank is eligible, this is the bank where you have your checking and salary account. Furthermore, you can inquire with all banks and credit institutions at your place of residence.
The Internet offers you even more options. At a glance, you can see the exact conditions for lending. Interest, monthly installments and maturity can be calculated online in advance. Websites that specialize in loan comparisons clearly present the terms and conditions of each bank. Online, you can not only obtain comprehensive information, but also apply for a loan. This type of borrowing is now very common for small loans and purchase loans. You submit the loan application via an online form in which you enter your personal data and your loan request.
For the approval of the loan – as in the local banking business – some documents are necessary. For example, you have to prove your monthly income. It also requires you to prove your personal identity. The PostIdent procedure (now also Web-Ident is possible, eg to open a current account), where you go with your ID card and the requested documents to a post office. The employees of the Post Office are authorized to verify your identity and then send your documents to the bank.
Compare interest and conditions
No matter which route you choose, you should always compare the interest rates and conditions down to the last detail. These factors can be crucial in assessing which loan is most suitable for you:
What are the interest rates?
The amount of the interest depends on the loan amount, the term and the credit rating.
What is the term of the loan?
This is determined by the amount that you can raise monthly – without much restriction – for the repayment of the loan.
Will the loan be paid out in full?
For some banks, a discount is common. The discount is a discount that can be agreed upon when a loan is disbursed. By this is meant the difference between the payout amount and the full credit value. A discount is considered a “prepaid interest”, which usually results in a lower nominal interest rate.
Caution: handling fees!
Attention, processing fees for personal loans are no longer allowed since the recent judgment of the BGH! ( Reclaim processing fees for loans already paid. )
Is a early repayment possible?
This agreement is particularly important to you as a borrower. For example, you may have a larger sum before the end of the term.
Possible reasons are the maturity of a life insurance or a savings contract, but also an inheritance or a lottery win. In that case, you may need to repay the loan in one sum without incurring high costs.
In the case of premature repayment of a real estate loan, a prepayment penalty is customary, which means that you have to compensate the bank for the lost interest. For small loans, personal loans and purchase loans or bridging loans, on the other hand, a premature repayment without financial disadvantages should be possible. Pay attention to all the above criteria when comparing loans.
Another important point:
Some banks also offer you an insurance policy to cover possible defaults. This allows you to make provision for the events of death, illness and unemployment.
The insurance contributions can be relatively high. Be advised in detail, for example by an independent financial expert, if a loan loss insurance is really necessary for you. If you want to protect your family in the event of death, a risk or life insurance is much more useful.
What does “credit-independent” mean?
The term “credit rating” means your creditworthiness. Banks inquire about pledging for a loan based on your payment history. The most well-known information center is the Private credit ( protection association for general credit protection ). Private credit has past incidents that could affect your creditworthiness. Among other things, these can be dunning notices and affidavits. Arrears in installment payments that lead to legal action and uncollectible old loans are also reported to Private credit. However, a credit inquiry can already help to assess and influence your credit rating. The Private credit must not only provide information to the banks, but also to you upon request. In addition to the Private credit, other institutes are active in this area. For you as a borrower, this means: with a flawless Private credit, you are fully creditworthy. Many banks make the amount of interest depends on the information. These interest rates are credit-related. In contrast, the terms are considered to be credit-independent if the conditions are the same for all borrowers. Nevertheless, before lending, each bank will inform itself about the payment history and any negative entries from the past.
How high may the business loan amount be?
You have detailed ideas about how high your credit should be. The best way to find out if this sum is the ideal loan amount is to find out with a thorough inventory of your income and expenses. Count all of your earnings – your salary and all other income, such as alimony, rental income, and regular family allowances. The same applies to all expenses, from rent to monthly charges to the cost of living. Now comes another issue: Your credit. Do not calculate too short! You pay back the loan with a much better feeling, if you do not exhaust your budget to the last cent, but still have a little leeway. Even in critical situations, remember that a small monthly savings contribution can be very useful in an emergency. Keep in mind that the amount of monthly installments depends not only on the interest rate but also on the duration. If in doubt, opt for a longer term and lower rates than vice versa!
Is a higher loan useful?
If you are considering borrowing, a loan amount above your actual needs may be useful in some circumstances. In any case, it is crucial that the individual factors balance each other. Loan amount, duration and amount of installments should be manageable for you. This is where your personal ideas come into play. Would you like to repay your loan as soon as possible and are you ready to limit yourself? Or would you prefer low rates and a long running time so that you can maintain your usual standard of living? A credit comparison shows you the different variants. So you can calculate different versions and then opt for a loan that fits your lifestyle and your personality.
When will an online business loan be paid out?
There are of course differences from online bank to online bank. However, most banks decide on loan approval quite quickly. If you have your complete paperwork and proof of income from the bank, the loans are usually paid out immediately or within a few days. To be sure, you can inquire in advance. Online does not mean anonymous! You can ask your questions by e-mail at many online banks, and you often even find a personal contact person with whom you can contact them by phone.
The cheapest loan – wanted and found!
The abundance of loan offers is manageable with a solid and reliable credit comparison. This will help you find your way around the credit jungle. Create your individual question and check list, which is especially important for you when borrowing. A reliable and reputable credit comparison portal gives you all the relevant data you need for your decision. You can rely on the experience of knowledgeable financial experts who help you with a loan comparison.
Are policy loans an alternative?
A policy loan is a loan in which the surrender value of your life insurance serves as collateral for the lending bank. So, if you own life insurance with a sufficiently high repurchase value, the policy loan can be an interesting alternative. Their advantage lies above all in the fact that with this form of credit the examination of the creditworthiness and the Private credit entries is omitted. In addition, interest rates on policy loans are generally lower than other consumer loans. Nevertheless, the actual conditions may differ greatly, which is why a credit comparison is strongly recommended here as well. For this form of loan capital-covered and unit-linked life insurance are suitable. As a lender, the insurance itself can occur. However, some credit institutions have specialized in granting policy loans. If you are interested in such a loan, before you apply, check all the key factors that are important to your decision, even with a traditional loan.
Loans and credit comparison without Private credit
The loan without Private credit is interesting for all persons who had to accept negative entries in the credit bureau in the past. This is not a blemish – there are numerous circumstances that, objectively, lead to a poorer credit rating. For you as a borrower, it is important that you still get a loan. With a loan that is solid, you can reorganize your finances or make a much-needed purchase. If you have a secured income or other collateral, such as a life insurance policy, borrowing normally does not present a problem. A credit check without Private credit shows you which banks are relinquishing information from the Private credit. Thus, you get a loan without Private credit, which is indeed equipped with a higher interest rate level, but gives you back financial latitude. A serious and discreet lending without Private credit offer numerous banks. You can find out about the conditions online by means of a credit comparison and – also online – first make a non-binding and free inquiry. You will receive the provisional loan approval after a very short processing time. Then you compile your documents and submit them together with the official loan application. Now nothing stands in the way of a positive credit decision.