Securities and repayment of rate loans


The banks require different securities

The loan institutes require beside the proofs to be produced to the creditworthiness according to intended purpose, loan height or credit standing of the loan application plate still additional securities. Everybody which would like to apply for rate loans at a bank or savings bank should enquire first after which securities and documents this institute of the granting of an advance demands. In most cases the institute needs:

* Selfinformation with the General Credit Protection Agency
* The presentation of the identity card
* The presentation of your last from two to three pay slips (condition: Employer-employee relationship of from six to twelve months)
* A valid residence permit and work permit (only for EU foreigners)
* if necessary the proof that one is in an unlimited employer-employee relationship and not in an education.

By an autofinancing the deposit of the vehicle letter is required to the security in most cases. To the letter one gets back after erasure of the advance of the bank again. With an acquisition advance demand to some loan institutes resigning to income.

Cession for the protection of claims urgently

This measure serves for the protection of all claims of the bank from the loan contract and is limited to the height of the loan amount plus 20 percent for perhaps originating costs as well as for the charges caused by default. By other acquisitions the bank or savings bank can require if necessary a guarantee. By a guarantee a third undertakes with possible insolvency of the debtee to step in for the open advance sum.

In certain cases the loan institute also demands a rest debt assurance of the applicant. Such offers a favorable security of the rate loan in death or illness of the insured applicant for the credit by payment of a single premium.

In the death all still due rates are taken over all at once. Some loan institutes exist on a rest debt assurance by the end of a rate loan contract. In this case both contracts are connected with each other and the applicant for the credit resigns all claims from the assurance to the loan institute. The rest debt assurance is nothing else than a risk life insurance which takes over the rates due still then in case of from illness or death. The costs of a rest debt assurance must be always given in the loan contract with.

The repayment of the rate loan

After occurred payment of the rate loan the applicant for the credit must pay back the lasted amount of money. This happens in rates during the agreed credit period. The rates are drawn monthly and consist of two components: Interest and erasure portion. The interest portion bears the monthly resulting interest for the rate loan, while the erasure portion leads back the rate loan monthly.

The loan amount every month is reduced by the erasure, until he has arrived at the end of the credit period at zero. With most rate loans the loan rate for the whole term is steady away, i.e. the applicant for the credit must pay for his rate loan always the same rate. High back bills of debt the economic existence can endanger device of the applicants for the credit – also blameless – with the repayment of a loan in delay, seriously.

Importantly: They can revoke every concluded loan contract within two weeks after signing according to §§495, 355 Civil Code in writing. If the credit grantor has not taught of the cancellation possibility expressly, one can still recant at the end of two weeks. Use this term to think over the loan application in rest once again and you also do not avoid a possible cancellation.

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