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Probably the most common form of credit is the classic installment loan, which actually includes most types of credit that you know. Whether car loan, real estate loan or rescheduling loan, in the end, it is the basic principle in all forms to a modification of a installment loan. The cost of this type of loan depends primarily on the term and loan amount but also personal factors of the borrower have an influence on the terms.
Online installment credit
One of the best offers in the area of pure online installment loans are Roobank and Zaloan. Here you can get in a few minutes to a personal loan with top conditions, without having to deal with paperwork.
Find favorable installment loan
Finding a cheap installment loan is very easy with our loan calculators, but at this point we want to give you three recommendations in three different price segments, which currently offer very good conditions.
Basic principle of the installment loan
The basic principle of a installment loan is initially very simple: the borrower borrows from a bank a certain sum of money, which he then repays over a predetermined period at a certain interest rate. It lends itself around 1200 euros and pays them back at a rate of 2.69% over 12 months, which amounts to approximately € 101.46 per month with processing fees.
Cheapest online loan on the net? limit
When applying for installment credit, make sure that most lenders restrict their offer to 75,000 euros. In addition, amounts are usually earmarked, so it is car loans, real estate loans, etc.
One of the reasons for this is that earmarked loans offer an immediate equivalent, which secures the lender. So if a loan of 20,000 euros is taken to pay a car, just this car exists as a counter value and can, if the borrower does not pay off his debts, be seized.
Apply for installment credit
Applying for an installment loan online today is usually fairly straightforward, although the process may vary depending on the provider and the size of the loan. In general, you have to know what the amount should be and how long the loan should be taken or repaid. If you apply via the Internet, it is also necessary to identify yourself.
This happens either by mail, many providers on the Internet have meanwhile also established a video ID procedure. That is, you simply confirm by video that you really are the person who applies for the loan.
Calculation of credit costs
Besides, there is always a credit check. This means that the respective lender requests various data – for example bank statements or Private credit information – with which he can estimate how high the risk is that the customer can not pay.
So, someone with multiple negative Private credit entries will have big problems, apply for installment credit, and even pay a much higher interest rate on success than someone who earns 4,000 euros a month and owns a property that can serve as additional security.
In other words, what the final cost of the loan will be depends on the creditworthiness of the client and his background. In the worst case, it may be that the loan is so expensive that you could just as easily cover your current account. In that case, if possible, you should refrain from taking a loan.
Option to special repayment
Some loan agreements provide for the possibility of early or special repayment. This means that the borrower, for example, if there is more money available than when borrowing, may pay off the loan faster than set at the beginning. This is usually accompanied by benefits, which means that you pay less interest on the loan than the original loan agreement.
Payment protection insurance
Another element that can have an impact on the terms and the chances that it will be a cheap installment loan is whether a debt protection insurance is used. Insofar as a residual debt insurance is taken out, a loan is generally more expensive, so you have to think carefully whether the insurance is necessary.
The residual debt insurance usually involves three risks: unemployment, illness and death. There is usually the option to hedge for individual cases, or for all three, which of course is the most expensive.