Anyone who needs fresh capital in the short or long term, for example, to bridge an acute financial bottleneck or make an acquisition, can take out a loan. These are basically available in different and target group specific forms. A potential borrower therefore has the opportunity to choose between offers tailored to a wide variety of life situations and uses.
However, there are all sorts of criteria to consider. In addition, certain conditions must be fulfilled in order to even get a loan. At least with the classic form of a loan, the bank loan. Times and opportunities have changed. Meanwhile, low-income and low-income people can take a loan. The digital age with its possibilities around the Internet alone ensures this.
An overview of the most important types of loans: The right loan for every purpose
If you want to take out a loan, you can orient yourself on the basis of explicit distinguishing features. Thus, the maximum and typical loan amount, the interest rate as well as the term are the most significant differentiators; In addition, it is important to note individual features. The following are the most important forms of credit outlined in Germany:
Can be used flexibly and can be taken over by overdraft in the agreed framework at any time. However, as a rule very high interest rates are due, often exceeding ten percent. Mostly, a credit line of two to three times salary is granted.
A installment loan acts as a release loan with flexible handling. An amortization is possible at any time. The interest rates may vary depending on the prevailing market conditions. The loan amounts are usually between 2,000 and 50,000 euros.
Loans of up to around 5,000 euros are considered so-called small loan, which represents a classic consumer loan. For the majority of banks, a fixed income is sufficient as collateral. As a rule, a loan of this kind is also relatively uncomplicated as a quick loan or microcredit. A comparison of the providers and the conditions can pay off extremely, since the interest rates vary greatly by provider and form.
In order to bridge financial bottlenecks, annuity or life insurance can be borrowed, with the loan amount can be up to 100 percent of the current value. As a rule, a loan of this kind is offered without Private credit. However, the offered loan rate of the various providers varies relatively strongly. Guideline: Between 4.3 and 8.9 percent is all possible. But beware: The lending of pension and life insurance can tear a gap in your own pension.
Wins more and more popularity and importance. Settlement is uncomplicated and at a significantly reduced cost compared to other forms of credit. An appropriate credit calculator records data and determines conditions. The loan is then exclusively online. Is also available as a quick loan. Since the lending financial institutions offer no individual advice locally and thus save time and, above all, costs, an online loan is often far more favorable in terms of conditions than other types of credit or forms.
With this type of loan, the own securities deposit can be borrowed ( credit without Private credit ). A loan of this kind can be used arbitrarily in earmarked form. Since this is a call-off loan, a high degree of flexibility is guaranteed. The maximum amount of the loan amount is usually between 50 and 80 percent of the deposit value.
Credit from private:
In this relatively “young” form of lending, borrowers seek private lenders. In this case, the lenders can come from their own environment or a corresponding loan is (partially anonymous) mediated; This is mostly done via internet platforms and virtual marketplaces for private loans such as Auxmoney. Frequently, the desired loan amount is provided by several lenders (here: small loan ). However, it has to be considered that social and personal motives of the respective lender play an important role in the eventual approval of a corresponding loan amount. In addition, the loan rate sometimes varies considerably, but is often cheaper than at the financial institutions.
Special forms of loans:
There are also certain special forms of credit. For example, some banks offer a student loan, with the terms explicitly tailored to this target group. It is also possible to take such a designated debt rescheduling loan. This is especially attractive to those who are not satisfied with their currently existing credit conditions or debits. Anyone who desperately needs fresh capital, meanwhile, can take out a so-called express loan or even a lightning loan. Furthermore, real estate owners can take out a mortgage loan; this is secured by a corresponding land register entry.
Selecting the right lender: There are various options to choose from
Anyone who would like to take out a loan did not pass a bank in earlier times; she was the classic point of contact for a personal loan. Therefore, banks are also known as credit institutions. From a small loan and installment loan to a larger loan, a bank even lends money in various forms, even in the millions. But times have changed. For a long time, a bank or a bank has been the most appropriate contact person.
On the one hand, this is due to the fact that banks often call unattractive conditions. On the other hand, the conditions are often not met to even get a loan. As a rule, banks refuse to provide a loan if collateral is missing. For example, if there is no proof of income, banks generally do not grant credit. However, there are now other alternatives on the market such as private credit or employer credit.
P2P Loans – Private Loan Private
If you want to take out a loan from private, you can use two options. He can look for a lender from his immediate environment or potential borrowers and appropriate providers (lenders) and prospects are mediated each other. This merger or brokerage is now realized via dedicated Internet platforms and marketplaces. Examples are Auxmoney, Smava, Lendico, which offer this service for a contractually agreed commission. This is therefore also an interesting opportunity for people with low credit ratings and negative Private credit entries to get a loan ( loans without Private credit ). Here not only the banktypical award criteria count. If it succeeds a potential donor either personally or convincing with the respective purpose, it can quite possibly come to a lending. Emotionality often plays the crucial “tip on the scales”.
In the case of an employer loan, on the other hand, the company in which the loan applicant is employed jumps in. While not every company – especially small or medium-sized enterprises – is able to provide loans to its employees, this practice is quite common in industries such as insurance or banking. However, a borrower should pay attention here to the exact contractual adherence to the modalities, so that the tax office does not consider the loan as a monetary value advantage. In addition, before accepting an employer loan, the question must be asked as to whether the employee will even stay with his current employer in the long term. If he accepts an employer loan, but leaves the company before the end of the agreed term, the repayment amount is due prematurely.
Borrowing costs: These criteria should be taken into account by potential borrowers when making a loan
Loans always cost money to a borrower because they cost money. Several factors play a dominant role. In order to assess a corresponding loan offer on the basis of conditions, the following aspects are to be taken into consideration in particular:
- The amount of the APR is always the decisive decision criterion. The annual percentage rate of charge can be used to calculate the final sum that must be returned to the lender. In no case may this interest be confused with the nominal or debit interest, which have no significance in relation to the repayment amount.
- In addition, attention should be paid to flexible interest rates. In fact, interest rates are not necessarily fixed for the entire term, especially for long-term loans. Depending on the market situation or interest rate trends, this may have a negative or even disadvantageous effect on a borrower.
- As a rule, there are also processing fees. Oftentimes, banks are already charging a fee to process an application. Processing fees for loans are not allowed since October 2014.
- Also, the consequences of a deviation from the agreed credit plan is associated with costs. For premature repayment, for example, a prepayment penalty is always due.