Personal Loans

With some investments, you can also benefit from favorable terms that are no longer available at a later date. A personal loan offers you the opportunity to make your wishes come true today.

What are the economic values?

A loan to finance private needs is different from a car loan or real estate financing. Unlike these special types of financing, you decide freely about the use of the money. You can use a personal loan including,

  • Renew your furniture
  • Have your car repaired
  • Replace household appliances
  • Finance a move
  • Renovate your bathroom

The Offer does not cover loans that are intended to acquire or maintain ownership of land, existing or future buildings or to acquire or maintain rights equivalent to land. Otherwise, there are no limits to your wishes with a personal loan.

Use your granted account overdraft only on short notice

Many consumers give up a personal loan and instead use the granted account overdraft of the current account. In the long run, this can become an expensive alternative because the interest rates for granted account overdrafts are significantly higher than for personal loans. If you want to temporarily bridge a financial shortfall, a granted overdraft is a good option. Afterward, you should try to compensate the minus as fast as possible. Otherwise, you run the risk that you permanently lead your account in the negative and pay high interest. Is that the case, you should think about rescheduling.

By replacing an expensive overdraft account with a cheaper personal loan, you can potentially save a lot of money. The establishment of a granted account overdraft is still useful, otherwise, there is an overdraft risk that direct debits are returned and standing orders are no longer executed. This causes additional costs. For larger purchases that are funded longer, an installment loan is the better choice. In contrast to a granted account overdraft, a personal loan provides you with security about the amount and duration of the monthly charge to finance your wishes. By replacing an expensive overdraft account with a cheaper personal loan, you can potentially save a lot of money.

How much credit can you afford?

Financing should never be a heavy financial burden. Therefore, it makes sense to determine your financial capacity before concluding a loan agreement. Based on your income and expenses, you determine what funds you have at your free disposal each month. Keeping a household book makes this task easy for you. But even with the help of the bank statements, you get a clear overview. Your household calculator supports you reliably. Find out here what you should look out for when you want to take out a loan.

Checklist for the loan application

With your loan application checklist, you will also get an accurate overview of revenue, expenses, and free funds. In addition, you will find out what documents you need for the bank appointment and can prepare everything in good time. Not every bank requires the same documents. Find out in advance what information your bank requires from you.

Flexible repayment – so you can replace your credit

Have you received an unexpected windfall and would like to settle your debt immediately? Then the loan repayment offers you the right opportunity. Whether it pays off if you replace the loan you should calculate individually for each individual case. In many cases, you can save money through early loan repayment because future interest payments are eliminated. Due to the early loan release, the bank escapes interest even though you have assured this payment upon the conclusion of the contract. You will have to compensate the bank with a so-called prepayment penalty if you repay a loan.

Save by rescheduling

If you are servicing a loan with higher interest rates, rescheduling could be worthwhile for you. The expenses for the prepayment penalty are offset by the savings from the lower interest rate. Therefore, you should figure out whether you can save when you make a contract and replace the old, expensive credit. The Bank may not charge any additional fees if you wish to repay your loan.

Conclusion: Disposition

Most credit institutions grant credit card overdrafts or short-term credit for current account holders. This is usually equal to three times the net monthly income. Anyone claiming the credit line must expect high-interest rates between a whopping 10 and 13 percent. However, if you need a small sum for a short time then a credit line is often the right thing to do. Whoever takes out a loan has good reasons for doing so. However, before signing the contract, it is better to know what forms of borrowing are available, how expensive a loan is and what the monthly cost is. Who takes that into account can also distinguish between credit sharks and reputable providers.