The interest on a loan can vary. Significant factors are the general market interest rate and the conditions of the bank. Low-interest loans can be found on the Internet, but can also be earmarked loans available from a dealer or car dealership. In any case, it makes sense to compare different banks and private lenders in order to consider all the opportunities offered for borrowing and to gain a good overview.
Requirements for borrowing
Anyone who wants to take out a loan in Germany must be able to prove a positive private credit information and a regular income. But there are also private loans, where the private credit information plays no or only a minor role. The degree of creditworthiness of a client is assessed by the banks on the basis of various criteria. Those who have a very good or excellent credit rating have far greater chances of obtaining a loan with low interest rates than a person whose credit rating is judged rather average. However, this only applies to a credit-based loan. In the case of a credit rating-independent loan, it is only judged whether the conditions for a loan are met or not. All persons who prove to be creditworthy receive the same interest here.
For personal loan special conditions apply. They are available either in the private circle of friends and acquaintances or via an Internet portal, which wants to bring together private lenders with private borrowers.
Compare loans with little interest
Before deciding on a loan, it is very important to compare as many offers as possible. This is especially true when it comes to looking specifically for a loan with low interest rates. Many direct or internet banks offer their customers particularly favorable conditions for lending. In addition, you can also find the local branch banks. In no case it is recommended to rely solely on the offers of the house bank.
The interest on a credit line is usually much higher than the interest on an installment loan. Unless you succeed in repaying the credit line in the short or medium term, it is strongly advised that you look for an alternative. A replacement of the credit line by a installment loan with little interest is highly recommended here.
Loans with little interest may also be expressly earmarked. This is the case, for example, with a car loan or a dealer loan. Often even zero-percent financing is offered here on a temporary basis.
If you would like to replace an already existing loan with a new loan, a thorough comparison is also recommended. A loan repayment is particularly recommended if the general market interest rate has fallen. It should be noted, however, that the low interest rates for a new loan must be matched by the prepayment penalty, which is charged by the previous lender for the repayment of the loan.
Apply for a loan – authorization, disbursement and repayment
A loan application can be made on the internet or in the branch of a bank. Loans with low interest rates are paid out in one amount after the grant and must be repaid in monthly installments. The amount of the monthly installments and the length of the term depends on the loan amount taken up. In addition, the conditions of the bank and the interest rates play a role. Some low-interest-rate loans have very short maturities of 6 to 12 months, other low-interest loans are characterized by long maturities and / or low monthly loan installments. This is especially true for loans with higher loan amounts or for loans for which deliberately long terms have been chosen.