In the case of a loan, a lender (creditor) provides one to a borrower (debtor) certain amount of money for an agreed period of time at a predetermined interest rate Available. Most of the loans are granted by branch, direct or online banks, which the
Check the creditworthiness (creditworthiness) of your potential customers based on scoring values ​​that give them provided by credit bureau or other credit bureaus.

It should be a loan enable the borrower to secure short-term money requirements or to make an acquisition to finance that cannot be paid from his current income. Such Acquisition loans are, for example, car loans with which the purchase price of a new or used motor vehicle to be financed. The mortgage loan is a special formof long-term loan used to finance a property purchase or a new construction project serves.

The loan amount (more precisely: the creditor’s claim for repayment) is secured that the purchased or newly built property is encumbered with a real estate lien, which as mortgage. A credit card is a convenient means of payment, contractually bound companies (acceptance points). Enable at the same time.Credit cards mostly supply cash on site at ATMs of banks or savings banks.


The main types of credit

credit loan

Most acquisition loans are given as annuity loans. The debtor pays the loan amount received in fixed – usually equal – monthly installments with which at the same time the proportional repayment of the loan debt (in increasing amount) and the servicing of the Interest debt (in decreasing amount). Such a loan usually runs for 12 to 84 months. In addition, there are short-term loans with a maximum term of one year, often called Bridging loans are called. In contrast, the mortgage loan is usually long-term (usually ten to twenty years).

Because of the long-term nature of a The fixed interest rate period plays an important role in mortgage loans. Most of them Mortgage loans have a fixed period of five to twenty years. Is the Mortgage loan not paid in full within the contractual term must be paid to the previous creditor bank or building society or at another credit institution Follow-up financing to be completed. Is the need for follow-up financing Foreseeable, it is often worth taking out a forward loan with which you can get the long term secure favorable conditions that the current capital market offers.


Potential lenders

credit loans

Most loans are granted by commercial banks and savings banks. In addition to classic Branch banks, cooperative banks and savings banks enjoy direct and online banks that your Marketing loans on the Internet and often offering cheaper interest rates, growing Popularity.

If a loan is to be taken out for a vehicle purchase, they sometimes offer car banks associated with the manufacturer or providers specializing in installment loans favorable loan terms. However, these offers often only apply for a limited time and only for certain models, the approach of which is to be specifically promoted. In individual cases, it is recommended that Use comparison portals on the Internet that enable a transparent market comparison. since, A few years ago there is a trend towards loan portals, the loans from private investors convey.


The debtor’s profile

The debtor

In theory, all citizens over the age of 18 with a permanent place of residence in Germany can unite here To borrow. The prerequisite is, however, that a regular income of an amount is proven, which allows a contractual repayment of the loan. Employees are enough proof of an employment contract and the Pay slips for the past three or six months. Officials have their last Submit payment notification.

Pensioners provide relevant evidence with the current one Pension modest. Students and ALG-II recipients get rarely and possibly only too extreme unfavorable interest a loan. Some banks also don’t give loans to self-employed people and Freelancer. As a rule, loans are only granted to customers whose creditworthiness is detailed was checked. Is insolvency proceedings opened against a debtor’s assets or if the opening was rejected due to a lack of cost-covering measures, a loan application is usually hopeless.

The same applies if against a potential credit customer Enforcement measures are underway or if the debtor is on the debtor register of the responsible enforcement court is registered. Otherwise, the lending and possibly the interest rate usually depends on the scoring value that credit bureau or another credit reporting agency has for identifies the loan applicant. If the creditworthiness is not sufficient, the bank rejects it. Loan application starts or requires additional collateral such as unencumbered real estate or the Assignment of claims from life or pension insurance.


The most important content of a loan agreement

loan agreement

The main conditions under which the loan is granted are laid down in the loan agreement. This includes the loan amount, term, rate and interest, as well as any additional costs such as Agency commissions and premiums for residual debt insurance. The use of a credit card is based on the general terms and conditions used by the card company. For There is usually no fixed term for a credit card contract, but there is a limited term.

Validity period and rules according to which the customer and the card provider the contractual relationship can finish. Central to the lending rate is that all loan providers follow the rules the price regulation as effective annual interest rate including all additional costs have to publish. Early repayment without is also important Prepayment penalty.