One of these expressions is certainly the word “balloon financing”. For installment loans, VW Bank is your reliable partner! The loan, also known as purchase credit, serves primarily to finance consumer goods with high utility value, such as cars and furniture. Consumer credit Cheap consumer credit at the General Civil Service Bank Germany’s best credit for civil servants and the civil service. In the case of long-term investments (buying a house or apartment), loan financing is usually essential.
What does the installment loan stand for?
What does the installment loan stand for? Installment loans are considered one of the classics and basically refer to a very ordinary loan. Installment loans are also referred to as consumer loans in many banks. In the case of the installment loan, a certain loan amount is transferred to the borrower on specified terms. First, the conditions between the applicant and the responsible body are discussed.
The borrower begins, as the title suggests, the amount immediately after payment of the loan in monthly installments to the house bank to pay back. The Borrower has transferred the monthly installment payment to the Bank over a fixed period so that the Borrower has paid off his debts in full at the end of the period. The amount of the installment and the terms can be clarified in advance with the house bank.
In principle, the duration of a loan can be between 12 and 84 days.
The repayment of the installment loan to the bank can, however, usually take place before the end of the contract period. Half a year after the loan has been disbursed and with a notice period of three months, the borrower can pay off all liabilities of the loan amount at once.
Before the credit from the house bank, the creditworthiness of the applicant is checked first. This is also the basis for the interest that the principal bank ultimately gives the borrower for the loan amount. In general, candidates with higher salaries are also offered more favorable conditions than applicants with lower creditworthiness.
The latter usually has to accept a higher interest on the installment loan. 2. For this reason, the principal bank indicates that it assumes a higher debt risk when lending the loan. For the installment loan, there are no additional costs in most countries apart from interest. However, in a few exceptional cases, additional expenses may arise in the form of insurance premiums, fees or charges for the borrower.
If the applicant’s credit rating is unfavorable, so that the principal has reasonable doubts as to whether the monthly installments can be collected by the borrower, the inclusion of a guarantor in the loan agreement may provide further collateral. The Guarantor designates a third party who will pay monthly installments in the event of the borrower’s bankruptcy.
For some banks you need additional insurance as a borrower. This covers the borrower in case of illness or death, as the open loan installments in this case can be paid by the insurance company. Before deciding on a installment loan, it can be very useful to go through the offers of the individual banks in peace and quiet.
Our installment loan comparison, which lists all matching installment loans at a glance, will help you. Find the loan with the best conditions and the best interest today.