Consumer loans - credit for whatever you like

This type of loan is aimed exclusively at private individuals. It is meant for purchases or wishes where you don't have enough capital available. In general, it is a traditional installment loan. It is paid off in equal monthly installments. As a rule, a consumer loan is paid out for free use, and borrowers can spend it on any occasion they like. The car loan is an exception here and may only be used to finance a vehicle. Loan amounts are mostly offered between $500 and $50,000. Terms range from 12 to 94 months depending on the lender. As a rule, no collateral is required.

Anyone aged 18 or over can apply for the loan. A primary residence and a bank account in Germany are required. Additional requirements are a permanent and sufficiently high income. Many banks only give the green light if you can prove you are employed. Freelancers and self-employed people are often turned down because of their irregular income. Further requirements may apply to this loan. Borrowers may have to present a permanent employment contract and have worked for their current employer for six or twelve months. The employment income must be secured at least for the term of the loan. Civil servants have high chances of getting this loan. They have secure, well-paid jobs.

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Interest on a consumer loan

It is not possible to make a blanket statement about interest rates. Depending on the lender, rates can differ significantly. The loan amount, the chosen term and the borrower's creditworthiness are the basis for calculating the interest. Borrowers with excellent credit and a very high income get a very low rate. A loan with a rate that doesn't depend on credit score is recommended for borrowers with medium to lower creditworthiness. For lenders, a consumer loan with a long term carries a high risk. That is why long-term loans are considerably more expensive. Borrowers need to work out what monthly amount they can afford. A tight calculation is not recommended, so that no financial bottlenecks arise. To find the best offer for your individual needs, applicants should do a thorough loan comparison.

With a non-binding loan calculator, you can compare a large number of consumer loans at a glance. All you need is some basic information such as the loan amount and the term. The effective annual interest rate (APR) is the most important criterion in a comparison. It includes the actual nominal interest rate as well as any fees and the loan repayment. A long term lowers the monthly payment.