Since the installment loan is usually taken for the purchase of consumer goods, he is called at the banks also consumption, – consumers, – or purchase credit. The loan is paid directly as a sum, which can be between 500 and 7000 euros. With a constant amount, the monthly repayment installments are set. The loan installment is made up of three units: the interest and the processing portion benefit the bank. The redemption portion is due for the repayment of the borrowed loan amount.
The duration of the repayment, which is between 12 and 84 months, influences the interest rate. The borrower can set the term according to his personal self-assessment, so that the repayment installments do not burden him too much on a monthly basis, but the repayment does not last too long. Because with a short term, the total cost is lower, and of course, the rates are higher.
The bank will charge a processing fee for processing the credit procedure. This fee will either be deducted from the withdrawal amount or added to the redemption amount. If banks do not charge a processing fee, you should investigate the offer for hidden costs.
The annual percentage rate fixes the total cost in the year and must be disclosed open by the banks and savings banks. The annual percentage rate of interest is influenced by the processing fee and the payment price . The interest and redemption settlement dates, the repayment rate and the repayment start date are also relevant for the annual percentage rate of charge.
The installment loan can be requested for free disposal, but is also possible as a special purpose loan. In this case, the sum may, for example, only be used specifically for furniture or vehicles.
At any time, the borrower may make a special repayment or a full repayment. Such unscheduled repayment must be agreed separately.
An installment loan is in most cases associated with an entry into the bank.
Up to six months after receiving the sum, the borrower can terminate the loan with a notice period of three months. However, in this case, the bank may retain the processing fee and charge a fee for the termination.
The bank is entitled to terminate the loan agreement on three conditions:
- Two consecutive monthly installments were not paid.
- There are 5% or 10% arrears of the nominal amount.
- The bank sent a warning to the borrower twice or threatened to terminate the loan.
The installment loan can be requested conveniently online. Thereafter, the contract will arrive by mail and the return of the signed loan offer is then binding.
A loan calculator helps with the realistic self-assessment, which affects a tolerable monthly installment.
The borrower must have a permanent job, be of legal age and have no negative bank entry.
In order to have to take credit in old age, you should hedge early. Here it helps to make insurance comparisons to different variants of pension insurance. A variation is here as the pension insurance is another option would in turn the. Life insurance (this end, a tip: If you are in possession of such insurance and wants to advance in cash . Convert the termination often associated with high losses can sell life insurance to via special providers and thus usually receives higher amounts).