Low-interest phase continues: consumers use loans for debt restructuring

Those who currently secure a loan benefit from continuing record low interest rates. Still – one would like to say, because the ECB interest rate hike has so far not affected the granting of loans. As a result, many consumers are taking advantage of the opportunity to redeem old installment loans , which were completed a few years ago during the high-yield phase, with online bank loan service offerings . Even contaminated sites such as the already expensive Dispo can be cleaned up in one fell swoop.

The current figures of the Bundesbank make it clear that especially disposition loans require radical financial clearing: according to their statements, every sixth consumer has overdrawn his current account . As the consumer center Bremen noted, the German bank customers lost thereby alone between December 2008 and July 2010 to the 1.2 billion euro, which they had to pay too much interest .

For some months now , financial experts and consumer portals have been in great demand for rescheduling via installment credit , which is likely to be boosted by the current low-interest phase as well as by current legal decisions on credit processing fees. Thus, there are mini loans with a loan amount of 2500 euros and a  term   of 36 months, which are among other things, the rescheduling of expensive overdrafts , from just 4.9 percent . Also in the fixed rateThere is an ever-growing range of promotional offers: For example, 10,000-euro loans with a 36-month term are already available for 5.75 percent – irrespective of which Schufa score the borrower has.

No matter whether fixed rate or credit-based interest rate – in the currently fiercely competitive competition for the cheapest credit, consumers are among the profiteers. Under the EU’s new Consumer Credit Directive, a loan agreement can be terminated less than half a year after disbursement with a three-month notice and a more favorable offer accepted. The formerly common processing fee of two to three percent of the loan amount could also be eliminated in a future credit rescheduling – a corresponding judgment must be confirmed only in the highest instance.

Until then, however, a comparison of the most attractive installment loans is worthwhile in every case. With a bit of luck, there are already individual online banks whose loans are not only particularly cheap, but also free from other fees, and are therefore twice as likely to be rescheduled.

Credit: Flood victims get cheap loans from SAB

Flood victims are primarily struggling with fears: first with the fear for their own lives and that of their relatives, later in the face of the damage with the fear of financial ruin. And this is quite justified, because so-called elemental damage, such as those caused by flooding and flood, are not included in any classic home contents insurance. If you want to hedge against this, you can only do so through your own policy. But even this is hardly possible in traditional flood zones.

To help flood victims quickly and unbureaucratically, the Sächsische Aufbaubank now offers loans for all concerned on particularly favorable terms . Up to 50,000 euros loan amount are possible according to information of the Saxon state government, for each child a further increase of 35,000 euros . Creditors can take advantage of SAB’s expanded range of advisory services. By the end of 2010, however, the loan application to the Saxon Development Bank must be made at the latest.

Above all, the money should be used to renovate or repair destroyed houses or apartments, provided the damage can not be covered by insurance or financed by donations. Loans are not only possible for individuals, but also for municipalities, here, however, in the amount of up to 5 million euros. Self-employed persons and companies can use the liquidity assistance of the Free State for the regulation of flood damages. These loans are also processed via the SAB.

Installment Loans in the Credit Comparison: Ranking of the Best Banks in February 2015

The banks offer different interest rates on installment loans depending on their term. Which bank has a good installment loan with low interest rates? The credit comparison in February shows the ranking of the top 10 online loans.

Here are the test winner from the interest rate calculator installment loan

The ranking of installment loans

The banks were tested with an online loan – which can be applied for via the Internet – with a loan amount of 10,000 euros with a term of 36 months. ( Test different loan amount )

  1. The Barclaycard with the Barclaycard credit
    from 2.79 to 6.99% effective interest in online credit pa
    from 289.73 euros monthly repayment of the installment loan.
    from 430,13 Euro credit costs over the entire term
  2. The SWK Bank with the SWK direct loan
    of 2.80 to 6.80% effective interest on the online 
    loan pa from 289.77 euros monthly repayment of the installment loan. 
    from € 431.67 onwards for the entire term of the loan 
  3. CreditPlus Bank with SofortKredit
    from 2.99 to 10.99% effective interest in online credit pa
    from 290.58 euros monthly repayment of the installment loan.
    from 460.96 Euro credit costs over the entire term
  4. The Targobank with the online loan
    from 3.45 to 10.99% effective interest in online credit pa
    from 292.55 euros monthly repayment of the installment loan.
    from 531.88 euros credit costs over the entire term
  5. The Consorsbank with the installment loan
    from 3.50 to 6.90% effective interest in online credit pa
    from 292,77 euros monthly repayment of the installment loan.
    from 539.58 euros credit costs over the entire term
  6. The Norisbank with the top credit
    from 3.70 to 7.80% effective interest on online loan pa
    from 293.62 euros monthly repayment of the installment loan.
    from 570.42 Euro credit costs over the entire term
  7. Postbank with direct personal loan
    from 3.89 to 8.97% effective interest in online credit pa
    from 294.44 euros monthly repayment of the installment loan.
    from 599.71 Euro credit costs over the entire term
  8. Deutsche Bank with TopkreditOnline
    from 4.39 to 9.99% effective interest on online loan pa
    from 296.58 euros monthly repayment of the installment loan.
    from 676.79 euros credit costs over the entire term
  9. Credit Europe Bank with personal loan
    from 4.50 to 9.99% effective interest in online credit pa
    from 297.05 euros monthly repayment of the installment loan.
    from 693,75 Euro credit costs over the entire term
  10. Degussa Bank with PrivatKredit
    Fixed interest 4.60% effective interest on online loan pa
    297.48 euros monthly repayment of the installment loan.
    € 709.17 credit over the entire term

Awards more loans than ever before

The German Federal Reconstruction Loan Corporation awarded promotional loans amounting to 50.9 billion euros last year, setting a new record in domestic business. According to its own statements, the institute has awarded EUR 23.8 billion through KfW Mittelstandsbank, 40 percent more than a year earlier.

A major reason for the increase in loans to the commercial sector was KfW’s special program launched at the beginning of 2009 to combat the economic crisis. Under the program, KfW’s annual report was awarded after 2,500 loans totaling EUR 7.2 billion. 94 percent of these loans were for medium-sized customers.

In addition to the promotion of small and medium-sized enterprises and combating the recession , KfW was also active in the field of building renovation: 8.9 billion euros of credit were granted through the programs for the energy-efficient construction and renovation of buildings – thanks to subsidies from the federal budget Conditions.

Just under one third of KfW’s total promotional volume was spent on climate protection investments in Germany and abroad: 19.8 billion euros were made available for these purposes. Environmental projects have been a focus of the Institute’s activities for several years.

KfW was pleased to announce that it was able to refinance its own activities on the capital market last year without any problem. The State Bank claims to have issued just under € 75bn by issuing bonds. The refinancing requirement will again be at this level this year.

KfW grants loans for very different purposes to private customers as well as to companies and local authorities. In addition to loans for the financing , modernization and renovation of buildings also loans for business start-ups, subordinated loans for small and medium-sized enterprises and loans for students belong to the assortment of the State Bank.

Building Loan Useful Calculator

The building loan calculator is now the tool of choice when it comes to finding a cheap mortgage lending . Almost every person sooner or later dreams of having their own house or apartment. That this dream is associated with very high costs, probably everyone should be clear. Without adequate funding , it can only rarely be fulfilled. It goes without saying that this financing should, of course, be as inexpensive as possible. However, the banks are currently in an enormous competition with each other, so that the offers are very different. A layman finds himself in the jungle of mortgage lendingOffers barely enough. Therefore, it always makes sense to make a comprehensive comparison and at this point sets the construction loan calculator.

Home Loan Calculator – Comprehensive Comparison?

It enables a comprehensive comparison within a few minutes. Of course, first of all, the necessary data must be determined with which the building loan calculator wants to be fed. For this it is important to know the exact amount of the loan, the own funds and the monthly installable installments. The loan amount can be calculated by future builders by adding up the purchase price, as well as all associated ancillary costs. Of this they still have to deduct the existing equity. This consists of all cash assets, balances on accounts or home savings contract, etc. together. After deduction of equity, there remains a need for financing that regularly corresponds to the total loan amount. However, still can loan from the KfW and building loans are availed to the bank loan can lower. They should also be calculated before the home loan calculator is used. With the help of a budget book, you can also keep track of monthly income and expenditure. These should be observed over a longer period of time. The remaining income minus a buffer represents the monthly rate which can also be stated in the building loan calculator.

The advantages of a home loan calculator are thus obvious: Within a very short time, the current conditions of different banks can be compared. From the offers thus created, the cheapest provider. However, the home loan calculator can refer exclusively to pattern calculations. In a mortgage, many individual factors play a role in the final offer. Therefore, potential builders should not rely solely on the building loan calculator, but request individual offers. These are best requested at the according to Baudarlehen calculator as the cheapest banks designated institutions. These offers, which sometimes differ from the information given on the construction loan calculator, then contain all individual points, so that a concrete comparison can take place. In this way you do not have to compare countless offers, but a manageable amount thanks to the building loan calculator.

Compare the interest rate on home loans

Mortgage lending is probably the biggest financial burden that a person incurs in his life. For exactly this reason, it is important to find the cheapest deals here. In particular, the interest rate building loan can often jump up the costs. And with six-figure funding and maturities of more than 20 years, that’s no wonder. However, now is because the interest rate housing loans due to the general crisis in the basement anyway, the best time to house construction cost finance. It is important that you protect yourself from future increases in interest rates by agreeing the longest possible fixed-interest period for the construction loan. Although it comes to low surcharges, but you get for long term security. In addition, the construction loan can be terminated after a lapse of ten years with a six-month period, even if the fixed-interest period has been agreed longer. The bank, however, can not terminate the loan early, as long as the installments are paid on a regular basis.

Nevertheless, even in times when the interest rate on home loans is very low, of course, a comprehensive comparison before deciding on a particular offer should not be missing. Because, in general, the banks are still in a fierce competition with each other and submit accordingly different offers. With the help of a building loan calculator, the interest rate building loans of various banks can be easily calculated. It is important that you first of all determine the required loan amount, as well as the available equity. Also, one should make sure that the interest rate home loan includes as much as possible all costs for the loan. Additional costs only unnecessarily increase the capital expenditure for the construction project.

Furthermore, it is necessary to check whether the interest rate on building loans can not be lowered. With different means this is quite possible. For example, banks grant a cheaper home loan loan rate if, for example, they have a particularly good credit rating or if the applicant has a very secure job. Furthermore, there is the possibility of obtaining a lower interest rate building loan, if the mortgage lending limit of 60 percent is not exceeded. In this case, the bank can register a first-ranking mortgage in the land register. This states that they are in foreclosureis served first. As a result, the bank’s credit risk decreases significantly, which allows it to grant a lower interest rate building loan. Even a little negotiating skills and a good line to the respective bank let the interest rate building loans sink. Likewise, new customers can benefit, they receive a very low interest rate building loan, if only for the sake of perhaps further follow-up business.

Fixed deposits and installment loans: attract new bank customers with attractive interest rates

It is an almost annual phenomenon: With the beginning of spring, many lower banks , the interest rates for loans to boost the buying mood of consumers. At the same time, the interest rates for overnight and time deposits are rising – again, the goal is to win new customers. Although this business policy is usually to the detriment of the company’s own margin , as the Financial Times Germany recently noted, is running just against the background of the current dazzling consumer sentiment a fierce battle of financial institutions for the favor of new borrowers and deposit savers.

The main beneficiary of the ongoing competition for even more attractive interest rates on installment loans and time deposits is the consumer itself, at least in this current spring rally: for example, the effective interest rates on consumer loans with a 36-month maturity have fallen from 7.31 to 7.22 per cent since September 2010. At the same time, the rates for fixed-term deposits with a twelve-month term rose from 1.3 to 1.6 percent. This is the result of calculations by the renowned financial consultancy Max Herbst (FMH) , whose consumer indices are also a valuable orientation aid for many banks.

Some credit institutions are promoting consumers’ increased willingness to spend at interest rates that until recently were mostly reserved for consumers with the highest credit rating. In addition, more and more providers are beginning to stagger the interest rates of their credit products by the credit score of each individual customer, but to provide equal conditions for all borrowers.

An example: The credit-independent effective interest rate for the car loan of ING-DiBa was only a few days ago reduced from 5.85 to 5.25 percent. This is the cheapest rate of interest for this form of auto financing for 20 years. The deposit rates were also increased by many banks, in some cases significantly: at SWK Bank, for example, there are currently for deposits from 10,000 euros with a term of 72 months, a whopping four percent.

All in all, a comprehensive check of the current offers is now worthwhile for many consumers : Independent loan calculators on the Internet enable a quick yet reliable comparison of all eligible loans and time deposits. For too long, but consumers should not let more time: the competition-driven spring boom in interest rates is over quickly, and a general rise in interest rates by central banks with all their then probably following negative implications for the credit – the market can no longer be probably to Santa Never move.

Expensive disbursements: With a cheap installment loan you can save a lot of money

The short-term overdrawing of his account can be expensive. Many banks require immense interest rates for a credit line. Those who want to remedy the high lending rates, should take action quickly.

Who covers his account and the overdraft facility takes, pays high Dispo interest rates generally. The cheapest banks demand six percent , the most expensive providers over 14 percent. If the agreed dipo framework is then overdrawn, some banks even demand up to 20 percent. If you are looking for a way out of the high collection charges, you can temporarily take out a loan for repayment. Even low credit sums can often save hundreds of euros a year.

The consumer center of North Rhine-Westphalia advises consumers, under any circumstances, to use a permanent credit, because even the cheapest credit line is more expensive than a favorable installment loan . The interest rates of an installment loan are sometimes less than five percent. This is 16 percentage points less than the most expensive credit line. Thus, it is definitely worthwhile to end the overdraft of the current account by rescheduling.

For consumers, who spontaneously need a little more money on a regular basis, but who usually pay for it quickly, there is also a way out of the high interest on disputes. The Consumer Center recommends in this case a framework loan , which represents a cheaper alternative with a fixed interest rate . With good credit rating can be with some banks a so-called call facility agreed. Compared to the credit line, a call-off loan is cheaper and can be redeemed at any time. Stiftung Warentest comes to this conclusion and believes that call-off loans are a sensible alternative to discretionary credit.

However, anyone who moves more often in the MRP area or even lends money beyond his credit line should absolutely compare the terms of his bank with offers from other banks. Because it makes itself felt, whether one must pay six or 20 per cent on lending rates for 1.000 euro , makes in the year already a sum of 140 euro. Who does not want to save them?

 

What you should know when canceling loans!

A loan that you took two years ago may be available today at a cheaper rate . Why is that? Interest rates are constantly changing and can change from year to year. If you do not want to pay too much, cancel the loan . If the loan was taken after June 11, 2010, a loan can be canceled at any time and you can combine the existing loans and replace them with a cheaper one. However, debt restructuring may be costly.

How much does it cost to cancel the loan?

In June 2010, the Consumer Credit Directives entered into force in the European Union. They allow borrowers to terminate their loan at any time. The drawback: The banks have the option to charge a prepayment penalty – this is limited to 1.0 percent of the remaining loan amount, with remaining maturities of less than a year, the maximum rate is 0.5 percent. The credit institutions may charge the fee because they suffer interest losses due to the early termination. Therefore, if you are planning a rescheduling , you should allow for such costs. For the purpose of a loan termination and a subsequent debt restructuring should be to save costs. However, if the early repayment fee exceeds the savings, this step is not financially viable.

The expiration of a loan termination

If you want to terminate a loan, you should first take care of a debt rescheduling loan, so that you can repay the outstanding debt in due time to the bank . Use our comparison calculator for this purpose – at the same time you secure a favorable interest rate and increase your savings significantly. Enter in the bank of your choice absolutely the use of – this will come back to your old Institute in touch and take care of the credit repayment. Collateral that has been deposited for the old loan, the old bank also has a so-called trust order to the replacing bank.

The benefits of a loan cancellation are obvious: The low interest rate you lower your costs. Adding multiple credits also improves your credit rating because you only need to serve one creditor and the monthly installment is better suited to your personal financial condition. This minimizes the risk of default.

Pay Expensive Dentist Bills via Installment Loan

A smile costs nothing and is still priceless – how (sometimes) true this sentence can be, is shown by many Germans, unfortunately, on the dentist’s chair: Unfortunately, many treatments of the doctor are very costly, also take many health insurance costs for additional treatments , such as orthodontic procedures or dentures. Then comes the bill for the necessary medical treatment, many Germans have to clench their teeth, because a few hundred, or even a thousand euros for these additional expenses have very few on the high edge.

Cheap installment loan also allows expensive dentist treatments

If urgent treatment is required but the necessary savings are lacking, consumers should always opt for health. A low-interest small loan which is financing the medical treatment usually no problem in comfortable monthly payments.

For small loans refer principally to normal rates of loans that consumers already on a loan amount of only 500 euros with one-year maturity at a bank can take. As with normal installment financing, the borrowed amount is then repaid to the bank for a predetermined period in constant monthly installments – including a specific interest component .

Small loan comparison on the Internet quickly finds the cheapest deal

But only a really cheap and suitable loan offer is suitable for the financing of the doctor’s treatment. A convenient and uncomplicated way to quickly find a cheap loan for the financing of the dentist bill is via a loan comparison on the Internet. After entering the required amount of money, the desired duration and the planned use of the comparison calculator determines after a few moments already the current conditions of many different banks . The right loanfor the dentist’s bill can then be applied for from the comfort of your home at the respective financial institution. Thanks to a favorable financing for your dental treatment, nothing should stand in the way of a radiant smile!

Using a loan to fulfill the wish of the garden house

If you have a beautiful garden of a certain size at your disposal, you often dream of having your own garden shed. With a loan, however, it is quite feasible to fulfill this dream.

Which type of loan is the right one?

For the construction of a garden house come, depending on the size and required loan amount, different loans in question. This includes above all:

  • The classic installment loan: With this loan, the borrower simply repays the loaned sum plus interest in monthly installments. This is a loan for free use, so that it is also feasible, for example, after the completion of the garden house of the amount concerned garden furniture or plants to buy.
  • Construction loan: If, on the other hand, a larger garden house is planned, this loan option is eligible. In the case of a construction loan , the borrower generally benefits from favorable conditions, depending on the available collateral. Unlike a classic installment loan, this is a special purpose loan. Thus, the borrowed sum may only be used to build the garden shed.
  • Real estate loan: Similarly, a real estate loan is a good choice for the construction of a larger garden shed. Again, this is a special purpose loan. However, it is possible for such a loan to take out the loan without equity.

Here it is advisable to consult the bank in detail about which type of loan is most suitable for the personal, financial situation.

requirements

In order for a loan to be awarded, it is up to the borrower to meet a variety of conditions, such as a good credit rating.

However, for the banks to grant a loan for the construction of a garden shed, a variety of conditions must be met for this purpose. Although these can differentiate depending on the bank , some conditions are usually a “must”.

This includes, for example, the minimum age for a credit application that is from 18 years. In addition, a regular, secure income relationship is essential. But also a good credit rating as well as a positive Schufa information are generally included.

Furthermore, the loan installments must be calculated so that they can be easily coped with from their own income, minus all expenses, without any problems every month.

Generally speaking, the higher the repayment installment, the faster the loan is paid off.

Required Documents

When applying for a loan, various documents, such as proof of income, are required by the banks.

Furthermore, the banks also require the submission of various documents. These include, for example, the bank statements or salary statements for the last two to the months, the identity card and the employment contract. It may also be necessary to provide evidence of life insurance and investments as well as self-disclosure with all relevant data. However, a registration certificate, the income tax card, installment loss insurance, information on any loans that may already be in progress, and any guarantees that may be required are usually also to be shown.

If one counts oneself to the start-up founders, here also often an order of assignment is requested. Such a declaration is a hedge of the funds received from third parties. However, this only applies if the client himself can no longer pay the agreed installment. If you as a founder in possession of such a declaration, it must before loanbe presented Accounts.

alternative

Financing through a dealer can be an alternative to a bank loan.

An alternative to a loan from a bank is the financing by a trader. Some companies offer their customers this option when buying a garden shed.

Here, however, it is important to keep your eyes open, because often this variant is more costly than a loan from a bank.

Compare loans

Through a credit comparison, it is usually possible to save a not to be despised amount.

However, even with a bank loan, it is not advisable to simply “strike” at the first offer. For example, it is advisable to ask not only the house bank, but also other local banks and online banks for an offer.

However, care should be taken here that the banks provide a conditional and not a loan request to the bank. Because the latter is stored in the Schufa, so that after a certain number of inquiries, quickly the appearance arises that the loans were all rejected. This in turn leads mostly to rejections and a bad Schufa.

Furthermore, not only the nominal interest rate , but above all the annual percentage rate should be taken into account. Because only the annual percentage rate includes all costs and fees incurred in the context of the loan. Because of this, he also offers quite wonderful for a good comparison of the various offers.

It’s often even possible to save a lot by having a loan comparison. However, one should not be fooled in any case, because even a difference of a few percentage points may already lead to a saving of several hundred euros and more.

Likewise, the term and the rate should be chosen carefully. Ideally, there is a certain amount of “buffer” left, which can be used in an emergency. This is the case, for example, when suddenly the refrigerator strikes and a new device has to be bought.

In order to be able to compare the different credit offers easily and quickly, the use of an online credit comparison is useful. These comparisons are usually free of charge and provide a good overview of the various offers and the associated details. Accordingly, it is hereby relatively quickly possible to opt for a particular offer.

Conclusion

It is by installment, construction and real estate credit feasible to build the desired garden shed. However, various prerequisites must be fulfilled and various documents must be available.

Depending on the size of the garden shed and the amount of loan needed, various types of loans are eligible. Above all, this includes installment, construction and real estate loans.

In order to obtain such a loan from the bank, the borrower not only has to meet the most diverse requirements, but must also submit various documents.

For example, as an alternative to a loan from a bank, it is also feasible to opt for financing from a dealer. However, it is best to look closely, as these offers are often more costly than accepting a bank loan.

It is also advisable to compare the various loan offers well together. Using a free online loan comparison , as we offer it here on kredite.de , this is usually easy and fast feasible. Attention should be paid to the annual percentage rate of charge, as this already includes all costs incurred. Accordingly, this is a very good comparison factor. Already a few percentage points difference in the various offers can already lead to a high saving.

So nothing stands in the way of building a beautiful garden house.