All the same which dream you would like to put into action – a dream trip in the South Pacific, a new car or own house – a rate loan helps along you with the personal desirable fulfilment. In principle rate loans are suited for all bigger acquisitions for medium-term terms.
Such advances help in purchases planned at short notice if the liquidity necessary for it is not given or if the giro account is covered permanently. The rate loan is called on account of his use mostly also consumption loan, consumer loan or acquisition loan. With a rate loan the applicant for the credit receives an amount of money unique paid from the credit grantor (mostly a loan institute).
Then the repayment of the loan amount the expression rate loan occurs through the applicant for the credit to the credit grantor in monthly rates – hence, also. By the choice of different terms one can determine his individual redemption rate. At the same time it is to be used possibly a rate loan with favorable interest to remove another existing rate loan or a drawing credit, to carry out a conversion of debts and to save high interest payments. Aspects like term, creditworthiness and repayment should be thought through to begin with well.
Comparison of the conditions of different banks
Before a rate loan is taken out, it is advisable to compare different conditions and offers of the banks. Direct banks offer as a rule more favorable rate loans than branch banks. Want more detailed information which banks offer favorable loans, a look at our loan calculator is worthwhile. Bank tip compares in it all interest rates of the banks which award rate loans and informed in detail about the most favorable conditions.
The costs for rate loans differ terrifically. In general you must note that the costs arise for a rate loan not only from above of the so-called nominal interest rate. In principle you find out with the help of this number the interest rate which the advance is paid interest. Nevertheless, the central decisive criterion with a choice of a rate loan is the actual annual interest. This returns the whole load in terms of percentage measured in the loan sum per year.
The banks raise, partly in addition, a unique handling charge, besides, can attack commission costs. The actual annual interest strongly varies, so that a forecast which interest rate is good depends on the market situation. Anyhow interest rates of 20 percent and more should not be accepted.
Basically the institutes are obliged legally after the so-called prices order (PangVO) to give the initial annual actual payment of interest of a loan. Thus it is understandable for the consumer to which interest rate including all additional costs he must repay his credit.
In the information of the actual annual interest the nominal interest rate, the handling charge, the discount (= is a disagio; information in percent) and agio (= premium; information in percent) as well as, perhaps, attacking commissions already included. The lower the actual interest is, the more favourably is the loan, and the loan costs which you pay back with your monthly rates are lower. Hence, the height of the loan costs is directed after the following factors:
* Height of the advance sum
* Credit standing of the application plate
* Intended purpose
* Account processing fees
* Possible commissions
Because of different nominal interest rates, handling charges or discount and the premiums for the rest debt assurance one loses with the comparison of the single loan offers fast the overview. Pay attention with a comparison not only to the nominal interest rates. The actual annual interest is decisive for the whole load of the applicant for the credit.