Installment loan

The installment loan is a loan for an amount in cash to individuals who will be repaid in equal monthly installments (payments) to a predetermined interest rate. In an installment loan includes a monthly rate of credit interest rate for 30 interest days. Lies between the credit disbursement and the date for the first installment is more than a month, determine the accrued interest and will be added to the first rate. This accrued interest is called the focal interest.
Lending rates are usually standardized banking products for private clients. Lending rates are among the most common types of loans, are moving at a height of about 1000-75000 € and have a maximum duration of 84, sometimes 120 months. They are usually as unsecured loans, ie set out without collateral security. Only a wage assignment as security is typically agreed in the contract. If the borrower's creditworthiness is not sufficient, a guarantee be additionally required by the bank. In the financing of motor vehicles, it is customary to make a collateral assignment of the car. Some banks waive but now - in the sense of a standardized and effective treatment - even for such financing on the security of the vehicles.Repayment is usually in equal monthly installments. These monthly rates include loan repayment, interest and any fees the credit institution. The interest of a loan rates are higher than for mortgages, but often lower than the overdraft. Typically, one-off processing fees are required up to 3% of the loan amount. Often completed by the installment loan contract payment protection insurance, which causes additional costs. Some banks offer direct installment loans for lower prices than retail banks. Meanwhile, the lending process is also in many branch banks as far as standardized and simplified, so that may be worthwhile to compare the conditions for the direct bank. The credit agreement, the effective interest rate are provided to more easily compare the cost of credit to ensure the various lenders. Installment loans are typically entered in the credit reference agency.
Installment loans are available in Germany since the 50s. Initially, the main business of hire purchase installment banks, today it is commonly offered by commercial banks. Especially for the car loan rates of banks is the main product's rates for loans to individuals was in Germany until the coming into force of the law of obligations Modernization Act, the Consumer Credit Act. If a credit rates increased or rescheduled, the result is other aspects that must be respected. When Kredi t-info - online. de is the interest of crucial importance. Therefore, you should as a customer who wants to apply for an installment loan, compare the conditions of the various banks and suppliers, because they differ sometimes substantially.For other information, check the other tabs. Good luck!