Banks distinguish between corporate loans, corporate loans, and between household and personal loans, personal loans. As a rule, a personal loan is an installment or consumer loan . The term can also be extended to framework loans and so-called small loans.
Personal loan calculator
Find in our personal loan comparison the cheapest credit for Germany online.
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Product specific features for a personal loan
The personal loan is defined by a fixed interest rate over the term , a fixed monthly installment and an initial term. The term may vary if the contract allows for special repayments or installment breaks. Most banks allow special repayments once a year up to a certain percentage of the remaining debt.
Otherwise, they are entitled to a prepayment penalty. This amounts to 0.5 percent of the remaining debt with a remaining term of less than twelve months and one percent with a remaining term of more than one year.
Special repayments can either lead to a reduction in the remaining installments or to a shortening of the term. Installment breaks usually extend the loan.
The amount of credit required is rarely a smooth sum in thousands. Here there are clear differences between the individual banks with regard to the loan amount. This can be done in steps of
- 1,000 euros
- 500 euro
- 100 euros
fail, depending on the bank. It also depends on the bank, what is the maximum loan amount. The longest possible maturity and whether the maturity can only be selected in steps of twelve months or individually also varies from institution to institution.
The maximum term for a personal loan is 120 months, most institutions expire at 84 months.
A personal loan is usually secured by a salary assignment. Against this background, it is rather difficult for self-employed to get a personal loan. The industrialized credit process for installment loans does not provide for a costly examination of other collateral.
Interest rates currently
Private loan rates are, in most cases, credit-sensitive. The better the credit rating, the lower the interest rate and vice versa. Pursuant to section 6a of the Price Indications Regulation, banks are required to provide a representative interest rate when advertising a loan. This indicates how high the interest rate, the maximum two-thirds of customers receive, therefore also called two-thirds interest.
buying a car
Personal loans are usually paid out for free use. The exception applies to the financing of a car, motorcycle or motorhome. Here, the borrower must prove that he has actually financed one of the mentioned vehicles with the money. The reason is that car loans are often equipped with lower interest rates.
The borrower sends his letter to the bank. If he does not meet his installment obligations, the bank can resell the vehicle and thus collect at least part of the outstanding amount. This process is much less bureaucratic and less costly than the salary garnishment in the case of a financed vacation trip. Therefore, credit institutions pass on this optional cost advantage to their borrowers in the form of cheaper interest rates.
How to find the cheapest personal loan with an online loan comparison?
The procedure is simple: Enter the desired loan amount and the ideal term, click on “Next”, and the banks will be displayed, the cheapest first. The catch, however, is that the lowest bound debit interest rate serves as the first selection criterion. However, hardly a customer receives this interest. As a rule, he will move somewhere between the lowest and most expensive interest rates. A first indication of how high the interest can finally be, offers the two-thirds interest.
The cheapest personal loan is basically not. Borrower requirements often go beyond the mere interest rate. The listed product specific features provide the opportunity to pre-select what the loan must offer.
Since the credit rating varies from bank to bank, it makes sense to start the loan request at two or three banks. Only then can a prospective customer compare the final interest rates. This he usually learns immediately after sending the request. Regarding Private credit, there is no reason for concern as the Private credit request made by the bank is made as a “condition request”. A request for a quote is Private credit-neutral.
If the offers of the banks are all before, now the final selection of the individually most favorable credit can take place taking into account all basic conditions. Ideally, the bank will even enable a fully digital application process with VideoIdent, electronic signature and digital submission of application documents.
What should I put attention on?
The answer to this question is also already found in the product-specific characteristics. Anyone who knows at the time of signing the contract that he will make special repayments is in bad hands with a provider that excludes this.
It is also helpful to have a look at the price list. Here are indications, which costs the banks possibly still calculate. These may occur in the case of a deferral of the installment as well as a change in the installment amount or the term.
All loans in our comparison come from reputable banks, many offers were awarded by the Stifwang Darenwest, Focus Money or other renowned institutions.