Personal loans for bad credit online -Easy approval internet loans for bad credit

It is not uncommon that you get into a serious financial situation, where you need urgently a certain amount of money to save yourself from the misery. Be it the rent, which is due in a few days, or the leasing rate or possibly unpaid reminders that go over your head. These quick, straightforward green day loans could help.

Easy approval internet loans for bad credit

The Dispo

With the Dispo, you can cover his current account by a certain amount. In most cases, the framework that is allowed to a bank client at their own house bank is high, 3-month net salaries, but can also be higher by agreement. This type of financing is quick and straightforward as far as your own expenses are concerned. The advantage with the Dispo is as mentioned the fast availability of the money and one can arrange the repayment modality itself. Unfortunately, the disadvantage is that interest rates are relatively high.

Good to know:
There are fluctuations from bank to bank, but often there are interest amounts that can be found in the double-digit range. You have to weigh very well whether it is worth waiting too long to repay. If the money is really needed urgently, nothing is wrong. However, one should create a financial plan that shows what amount can be repaid monthly to keep costs low.

The one-time overdraft

The one-time overdraft

An overdraft is when the checking account or a discretion beyond the possibilities is exaggerated. Without a prior agreement with the bank, it may not be easy in some cases. Running bills cannot be debited any more and you will not get anything at the ATM. In exceptional cases, the bank also tolerates unspoken overdrafts, but you should not overdo it and settle your account as soon as possible.

With high-interest rates you have to expect this form of raising money and this can be, especially in this case, very expensive. For smaller amounts of money, this is also a quick way to get money.

The 24-hour credit or instant loan

First of all, before you start looking for a 24-hour loan, your own credit rating is extremely important. After the credit rating, that is the interest rate. With good to very good creditworthiness due to a high income and exemplary payment behavior, credit-based loans are the better way, as one can expect cheaper interest rates.

In the opposite case, the credit-independent loan remains. However, this is relatively expensive, as the bank has to expect, due to the mediocre creditworthiness, that it can lead to defaults. Applying for an online loan is usually faster than going to the bank branch.

Note:
You can see immediately if the loan is granted and you can insist as a customer on a lightning transfer, but which is chargeable.

A 24-hour loan is a loan that is quickly and easily applied for, audited and paid out. Depending on the bank, up to € 500 or € 1,500.00 can be requested. Rarely even 50,000.00 € are possible. Most banks have automated these types of loans. The customer can apply for the loan online and the bank checks and answers it automatically, sometimes within a few minutes.

The money is also paid out quickly. This type of loan is thus particularly well-suited to customers who need money fast because of something unforeseen, such as damage to the car or house that needs repairing.

requirements

Even with such an urgent loan, there are certain conditions that must be met. The borrower must be of legal age, as one is fully capable of acting after the age of majority. The resident must be in Germany as well as an account with a German bank must be present. Furthermore, a median credit rating of about 250 – 299 is necessary. This means that the probability of default is about 1.99%.

Note:
So here, the bank can be reasonably sure that the loan will be repaid. The credit rating is therefore also checked in a lightning loan. Last but not least, a regular income is necessary to get an emergency loan. The amount is at least € 500.00 per month.

The loan application will therefore also require documentation, even if most banks offer an online application. For this account, statements are necessary and/or payroll.

Info:
In addition, a copy of the identity card is necessary. If the documents are available, the credit will be checked automatically within a few minutes and the payment will be made immediately. This can be done in part within an hour.

What are the terms of the 24-hour credit

What are the terms of the 24 hour credit

Interest rates vary widely from bank to bank, ranging from 7% to 15% a year. An interest rate comparison can, therefore, be worthwhile. It takes a lot of time and patience, but in the end, it could mean real money.

The loan amount for 24-hour loans is relatively low in relation to income, so the repayment is rather short. Partly the loan is granted for 15 to 60 days. Until then, the loan must be repaid. Either this is repaid in one sum or in two installments.

Note:
Less often, the loan is granted for a longer period. It should be noted, however, that the repayment rates for long-term loans are relatively low, but the total cost of the loan then rises. If you want to keep the cost of the loan low, you should, therefore, choose a shorter term.

Possible uses

Such a loan is worthwhile if, for example, the refrigerator breaks down unexpectedly. Where should food be stored now without it spoiling? The neighbors probably hardly and on the balcony or window sill makes sense only in winter. Saving is not always possible for many people. In such cases, our loa  would be an appropriate way to quickly buy a replacement. This example investment would be possible for € 300.00.

For a repayment term of 30 days and an annual interest rate of 10.36%, the repayment amount to 302.61 € ((300 x 30 x 10.36 amounts) / (365 x 100). Due to the interest of the refrigerator is obviously something more expensive, but it can be replaced immediately and easily, even if you have no savings at the moment.

Before applying for a loan, however, one should first think about whether the loan really makes sense. A rash act has already driven many to ruin and the bankruptcy was the natural consequence.

Important:
The question that should be asked is whether the investment is really necessary and whether one has no alternatives. A loan to go on holiday, it makes less sense.

A loan for a car, if there is no alternative way to get to work, could be more necessary. Saving on investment could, in any case, be cheaper.

What is needed?

A credit request is always linked to requirements. Thus, you should create these conditions in advance, if they are not already done. The prerequisites are, as already mentioned, the age of majority, domicile, an account in Germany, a regular income and at least a medium credit rating. If a prerequisite is not met, the loan request is doomed to failure and the bank will not grant the loan. Even with a lightning loan, all requirements are checked exactly.

Note:
In particular, the credit rating is a challenge for many. It is therefore important that they always stay clean and are not over-borrowed as each loan also weakens the credit rating. In addition, regulated payment morale is essential to maintain a good to medium credit rating.

How much money is needed?

Important before the loan request is to determine the credit needs correctly. What amount is needed to put the plan into action? It makes little sense to calculate the loan amount small if you end up with the amount cannot go and take more loans that are more expensive than the first loan. A realistic calculation and forecast of the new purchase or the repair costs are therefore necessary.

If necessary one should be advised accordingly. Only when the amount has been determined exactly does a loan request really make sense.

It is also important to determine the duration and the monthly burden. The longer the term, the lower the monthly burden. However, then increase the total cost of the loan. When planning, you should also predict how much you will be able to repay monthly in the future. Today, you can handle maybe 100,00 €, but is this repayment possible in the future?

Info:
If in doubt, you should rather choose a smaller rate. Of course, in the case of small loans, the forecast of the repayment option is not so long-term, but again you should look at whether the loan should be repaid in one sum or rather in smaller installments.

Offers from different lenders should ultimately be compared. The interest rates of the different banks are very different. A comparison can thus significantly reduce the total cost of the loan. There are several comparison calculators on the Internet that can be used to scrutinize lenders and interest rates so as not to inflate the total cost of the loan unnecessarily. Between 7% and 15% is not uncommon and can mean a difference of € 1.71 per month in the example above. A comparison is worthwhile.

A well-considered, 24-hour lightning loan is a great way to get a quick buck and short-term shortage for a short-term investment.

Forward Loan – Provider, Benefits and Comparison

Owning a property is the dream of many people: Around 80 percent of all Germans wish to move into their own four walls during their lifetime.

The time for follow-up financing is currently particularly favorable: interest rates have stagnated for months at a historic low and allow buyers particularly favorable loan conditions. Forward loans are the means of choice to secure the current low level of interest rates.

Use of the computer mask for forward loans

1. Net loan amount

In the foreseeable future your current financing is running. So you know the future financing needs and enter this at this point.

2nd repayment term

Enter here your desired repayment term of the forward loan.

3rd Postcode

Enter the postal code of the place where you live on the credit application at the time of signing. You may have a new post code in the future, but this is not required here.

4. Mortgage

Correctly, this point would have to be called lending outflow. This refers to the limit to which the object to be financed can serve as collateral.

The percentage refers to the mortgage lending value of the property, not the market value. The latter is identical to the purchase price. The mortgage lending value may deviate from this. Both up and down.

Therefore, consider what intrinsic value the property has at the time of the loan agreement.

5. Repayment

Perhaps you can raise the repayment rate thanks to the low interest rate without changing the monthly burden. If that is the case, we advise you to do so. This will significantly reduce the term of your follow-up financing.

6.Vorlaufzeit

At this point, simply select from when your forward loan should take effect.

Free download: checklist for forward loans

 You are currently considering financing in the medium term future? Our free checklist helps you to rethink the topic of forward loans in a structured way and to keep an eye on all important aspects.

Forward loans: securing favorable conditions for the future

The 2012 low-interest phase is bad for savers but good for borrowers. The current interest rates are still close to the all-time low and compensate for the rising prices for residential real estate.

Although banks have been gradually improving the interest rate on mortgage loans over the past few weeks, financing for buildings and land is still less than ever:

With just under two percent interest, buyers have to count on average to finance the dream of their own four walls – just ten years ago, a good six percent due.

Already one percentage point difference in terms and conditions has a significant impact on the credit burden: With a financing sum of 100,000 euros, this results in a difference of almost 10,000 euros over a period of ten years.

If you have already completed your mortgage lending years ago and need to complete follow-up financing in just a few years, you can look forward to a forward loan to secure the current low level of interest rates for the coming years:

Surf Tip: Compare daily rates for mortgage lending

 

Forward loan secures follow-up financing years in advance

Experts believe that inflation will continue to increase. Then, however, the lending rates will go up again – and make the purchase of real estate significantly more expensive. This does not only apply to initial financing, but also to follow-up financing, which is concluded as soon as the first fixed-interest period expires.

This is the case for most real estate loans after ten or fifteen years. Anyone who only just gets by with their credit burdens could experience a nasty surprise in a few years with new terms – and possibly get in trouble with his loan repayment.

With a forward loan, real estate financiers can protect themselves against such future scenarios reliably. Up to five years before the old loan expires, homeowners can use a forward loan to secure today’s conditions for follow-up financing.

It makes sense to conclude such a loan, but usually only with a time interval of three years – then the interest premium, the banks calculate with 0.01 to 0.03 percentage points per month.

Forward loans counteract rising interest rates

If interest rates are expected to rise in the future, borrowers will make good use of a forward loan. Of course, a little bit of risk is involved – because when interest rates fall unexpectedly, borrowers pay with the forward conditions. Only a few banks grant a call option – and if so, only for a high surcharge.

In general, it makes sense to enter into long-term interest rates for the currently low interest rates in order to secure favorable conditions for as long as possible. Higher repayment rates – for example, two instead of one per cent from the beginning – as well as regular special repayments bring a higher financial burden in the short term, but the property is so much faster paid off – and the financing is thus even cheaper.

Compare mortgage lending

Our mortgage calculator helps you to find the best mortgage lending:

Net loan amount: Running time: 5 years ten years 15 years 20 years Mortgage lending: 60% 80% repayment: 1 % 2% 3% 4% 5% 6% 7% 8th % 9% 10% full

When is a forward loan worthwhile?

The development of interest from the completion of a forward loan until its payment is decisive for whether it is worthwhile or whether it would have been better to wait until shortly before the expiry of the fixed interest period for initial financing and to carry out a normal follow-up financing.

The interest rate advantage or disadvantage arising from the conclusion of a forward loan depending on the development of the construction interest is illustrated in our graph below:
Advantages and disadvantages of a forward loan depending on the development of interest rates

When can a forward loan be terminated?

In principle, every loan can be terminated after ten years with a notice period of six months. This also applies to forward loans. The regulatory clause can be found in the Civil Code.

Section 489 (1) no. 2 defines that the borrower has the right of termination after full receipt of the loan amount. Should he make a new interest agreement with the bank during the term of the loan, the date of this agreement will no longer be the receipt of the money, but the date of this agreement as the new starting date for the calculation of the termination right.

The district court had to deal with exactly this fact in September 2015. The borrower followed the regulations of the Civil Code and announced in due time his forward loan at a time that would be reached ten years after signing the contract.

The bank did not accept the termination and insisted on a repayment of the loan as agreed. In their opinion, the right of termination applies only when the new conditions come into force and not with the previously signed contract signature.

An example case should clarify this:

Ms. Kuster is raising mortgage lending on May 1, 1995 to X percent. The interest is fixed for ten years. The contract runs until 30 April 2005. It is clear that in this short time they can not repay the mortgage lending and after the end of the fixed interest rate a direct subsequent financing must take effect.

On August 1, 2003, Ms Kuster agrees with her bank on the terms of further financing when the interest rate of the first loan has expired. She decides that she wants to lock in interest Y already now, in order to secure interest rates and to be sure of her planning. There is a fixed interest rate of 20 years and a full repayment at the end of these 20 years. This forward loan expires on April 30, 2025.

In 2011, Ms. Kuster decides to terminate her loan. The low level of interest rates following the financial crisis suggests this step.

According to BGB §489, she can do that ten years after signing the contract under the new conditions. Since it took out the forward loan on 1 August 2003, the earliest possible termination date would be 2 August 2013 (the day after the ten years have passed completely).

For a successful termination, they must submit a letter to the lender no later than six months before this date.

As a result, their mortgage lending at the previous bank ends in this way on 02 July 2013 and not only on 30 April 2025.

Infographic on the timing of the termination of a forward loan

What happens after the successful termination of a forward loan?

Ms Kuster successfully claimed the termination. In summer 2013, she has not yet paid off her property. The original financing plan envisaged April 2025 for the complete repayment of mortgage lending.

Your previous bank has paid the cost of the property. Ms. Kuster has already repaid a lot, but the bank still has an open demand. This is due to Mrs. Kuster when the termination takes effect in one sum.

For this reason, Ms. Kuster must have signed a follow-on financing by which time she can settle her debts with the previous bank or savings bank.

As the new financing has a lower Z interest rate than the previous contracts, Ms Kuster can raise the amount of the repayment installment without increasing her monthly exposure. On the one hand, it pays less interest and, at the same time, finishes financing its property more quickly.

Significance of the right of termination for borrowers

If financing is already in progress and a forward loan is to be concluded, it is advisable to negotiate intensively with the previous bank and perhaps to give preference to it instead of switching at the appropriate time.

If the customer stays with the previous bank, the contractual signature for the forward loan counts for his right of termination, which in the example above was 2 years before the end of the previous financing.

If the customer changes the bank, the ten-year period begins for him only after receipt of the complete loan amount. For Ms Kuster, that would have been the case in 2005 if she had paid her previous bank with the new bank’s money.

Request a free and non-binding offer for a forward loan

If you would like to be supported by experts in planning your follow-up financing, we offer you the following opportunity to work out a free and non-binding offer:

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Employer loan Civil service

A well-functioning employment relationship between employer and employee is based on trust, good performance and reliability on both sides. Therefore, employers sometimes grant loans to the employee on particularly favorable terms. This loan is often used to finance training or finance home ownership.

Employer loans: What needs to be regulated in the contract?

An employer loan is by no means a consideration for special services or merits. It is the granting of a “normal” credit – only by the employer and at much more favorable terms. However, the employer must respect the principle of equal treatment when granting employer loans. This means that he can not distinguish between part-time and full-time employees when lending and setting the rate of interest. However, employers may very well refuse a loan application if, for example, individual employees are over-indebted or if they already have wage garnishments.

For tax and legal reasons, the loan agreement between employee and employer should be concluded in writing. The following points must be regulated:

  • the amount of the loan
  • the interest rate. If it is missing, the loan is granted without interest.
  • the repayment term and the monthly repayment installment
  • the notice period, cancellation requirements
  • the possibility of a free special repayment

Tip:

The interest advantage between the agreed and customary market interest rate is regarded as a pecuniary benefit and must be taxed as such. It compares the APR to be paid by the employee at 96 per cent of the actual interest rate. This creates a monetary benefit of four percent. If this interest advantage does not exceed the tax-exempt limit of 44 euros in the calendar month, then it remains tax-free.

Note:
In most cases, the repayment of the employer’s loan is offset against the current salary. Here, the legal attachment exemption limits must be observed. Because the repayment rate may not consume the full salary of the employee.

If the last monthly installment is paid, it is the duty of the employer to terminate the contract. In the event that the employment relationship is terminated during the contract period, the employee does not necessarily have to repay the entire amount at once. Only after expiry of the statutory period of notice can the employer reclaim the full loan amount.

On the other hand, agreements are inadmissible in the event of termination of the employment relationship:

  • provide for an immediate repayment of the entire loan (inadmissible, as the severity of dismissal for the employee)
  • as well as excessive interest rates and unsustainable payment burdens.

However, the employer may very well, if the employee terminates the contract, demand a standard market interest rate that can be significantly higher than the agreed interest rate.

Not to be confused with advances and advance payments

Employer loans are not advances or advance payments. Advances are benefits that have been paid out to an unearned salary and will be repaid in the foreseeable future. Advance payments are prepayments on an already earned but not yet paid out salary payment.

Demarcation of employer loans from other benefits

According to the Federal Ministry of Finance, an employer loan is a grant of money by the employer or a third party to an employee, in which case the reason for the transfer must be mentioned.

No employer loans are therefore:

  • Advances (travel expenses)
  • Benefits on reimbursement of expenses
  • as well as payroll salaries

The employer loan in the public sector is a cheap alternative to traditional bank credit. The basis of a successful employment relationship between employee and employer is good performance, trust and the reliability of both parties.

Note:
For this reason, it may happen that the employer grants a loan to an employee, which is characterized by particularly good conditions. In this way, the employer binds the people who work for him to the company and gives them a kind of appreciation. This form of credit is often used to purchase a home or to take advantage of a training measure. In most cases, these loans are tied to a specific purpose.

For whom is the loan suitable?

For whom is the loan suitable?

First of all, it is important to know which group of people can claim this particular loan. The public service can also be described as civil service. This term refers to the field of activity of civil servants, salaried employees (employees of institutions, public bodies or foundations) and other employed persons under public law (such as judicial trainees, judges and soldiers).

A loan granted by an employer is definitely not a consideration that can be obtained for a particular merit or achievement. A normal loan is granted, the lender is in this case only the employer.

Info:
In addition, the allocation of this particular financial product happens at significantly better terms than other loans. For the employer, the principle of equal treatment applies when lending. Therefore, he can not distinguish between full-time and part-time employees if he sets the rate of return. However, if a worker is over-indebted or even has a lien, the employer may reject a loan application.

Demarcation of the loan in the public service

Demarcation of the loan in the public service

This financial product must not be confused with advance payments and advances. The installment payment corresponds to a payment that relates to the salary that has not yet been settled but already earned. For payments that fluctuate or for late payroll, advance payments can be agreed. Advances are payments that relate to the salary that has not yet been earned and that will be repaid in the foreseeable future. The legislator sees this form of payment only as a time shift for a payment of the proper wage.

In addition, it is important to be able to distinguish this financial product from the other benefits. According to the Ministry of Finance, this type of loan is a case in which a sum of money is granted by the employer. There is also the possibility that the lender is a third party, but here a use must be mentioned. Incentive salary deductions as wages, benefits on reimbursement of expenses or advances (travel expenses) are not covered by this form of credit.

No pure official credit

No pure official credit

Not only the officials have a civil servant loan available. Employees can also use it if they are civil servants. However, this professional group requires proof that employment in this field of activity has existed for at least 5 years. The conclusion of a loan for civil servants is only possible if this period is taken into account.

This special loan gives employees of the civil service decisive advantages, which not only refer to the favorable conditions, but also to the planning security. A variety of providers awards these loans.

Note:
For this group of persons as borrowers, the interest rates are predominantly below the interest rates of traditional loans. On the one hand, this reduces the extra financial burden of receiving a loan and, on the other hand, it can also call for higher sums of credit.

What else is there to consider?

 

The following section describes 5 aspects that should be known in the context of this particular form of credit.

Pay attention to the written form

Loan agreements between employer and employee should always be in writing for legal and tax reasons. For some aspects there must be a regulation: the amount of the loan, the interest rate, the term of the loan, the monthly repayment installment, the conditions for cancellation, the notice period and the possibility of free special repayment. If no interest rate is set, there will be an interest-free granting of the loan.

What happens at notice / job change

If a borrower leaves the employment relationship, the loan does not automatically have to be repaid immediately. Unless there is a specific and explicit agreement between the lender and the borrower, the loan agreement will continue to operate on the terms set forth upon the conclusion of the contract. Whether the employment relationship is resolved amicably, on time or without notice does not matter.

The financial product can be terminated if the notice period is considered. This provision does not apply if both parties have agreed on an exact repayment date or repayment modalities exist. However, if a fixed date for repayment or a monthly repayment installment has been set at the time the contract is concluded, this provision will apply in the event of termination of the employment relationship.

Info:
For the employee there is the obligation to meet the repayment date or to pay the monthly installments on time. The employer can not terminate the loan agreement prematurely in such cases.

Consider special repayment

A peculiarity of this form of credit is that public sector employees have the option of special repayment at any time. The individual debts can be reduced easily and quickly. A special repayment is usually not associated with other costs. The borrowers can thus choose between two options, the loan can be partially or completely redeemed. In the case of special repayment, this financial product also incurs no prepayment interest.

Note:
In addition to the loan agreement, endowment life insurance is concluded, which can be used, among other things, to repay the capital.

Pay attention to the correct control

When awarding a low-interest or interest-free financial product in the public sector, the interest advantage (non-cash benefit) must be determined because the employee must pay tax on it as a wage. The benefits in relation to the interest paid to the borrower are included in non-monetary benefits.

Ultimately, they must also be taxed as such. However, this taxation only applies if the amount of money not yet repaid is greater than 2600 euros at the end of the pay period. However, there are special tax exemptions with regard to tax assessment. However, the employee does not receive an interest advantage which is considered as taxable if a loan is granted at an interest rate which is customary in the market. For a tax-correct procedure the advice with a tax consultant can be advantageous. For a tax-correct approach, the advice of a tax adviser, be beneficial.

Benefit from committed interest rates and long maturity

Civil servants and civil servants can improve their solvency when taking such a loan. The low interest rate and long maturities allow low rates to be paid each month. The maturities of this financial product are mostly 20 years or more.

The safe and simple structure leads to optimal planning security. The reason for this is that interest rates are usually fixed throughout the term. As a result, the regularly payable installments receive stability and can be considered as a fixed monthly expense. This form of loan is usually a cheap way to raise capital when buying a property.

Note:
A consultation with the financial expert should be used in such an approach, as there are different combinations regarding the different forms of loans for real estate and subsidies. When buying a living space, this step guarantees a process that is optimal for consumption.

Mortgage lending without equity – calculator and comparison

In real estate financing, a distinction is made between 100 percent and full financing. While only the pure purchase price and / or the construction costs are covered with the former financing, with the full financing also the additional costs are included. That is, notary fees, processing fees or land transfer taxes are also funded.

Advantage of a full financing: With a full financing without equity, the own liquidity is completely preserved and so unforeseen expenses can be incurred. Until a few years ago, the builder or home buyer had to raise at least 20 percent equity. In addition, he had to finance the additional costs. This requirement remains to be recommended, but there are now many financial institutions offering full financing.

Important information

If you have a mortgage without equity, you have to expect some high interest premiums. Our mortgage calculator shows you the interest rates you need to expect in the case of full financing. Interest-rate premiums of 50 to 80 percent are not uncommon, as our calculations show later on this page.

Which providers currently have particularly favorable interest rates for mortgage lending without equity, shows our comparison:

  • How does mortgage lending work without equity?
  • How expensive is mortgage lending without equity?
  • Cost of real estate loans in Germany
  • Target group of banks and positive aspects
  • What negative points are there to consider and what problems can arise?
  • Tips for builders

How does mortgage lending work without equity?

How does mortgage lending work without equity?

Depending on the bank, the requirements that a borrower has to meet for full financing vary. In any case, there must be a secure income, which, moreover, should be reasonably high. Who asks as a freelancer or self-employed after a full financing, must meet usually even higher requirements than z. B. an employee. The income is set as the limit for the possible amount of funding. Usually, a loan can be awarded up to nine times the net income of a year.

There are two repayment options for mortgage lending without equity: On the one hand, financing is provided through an annuity loan. Here, the monthly payment to be paid always remains the same amount – at least as long as the borrowing rate does not change. But the redemption and interest rates will shift over the years. The proportion of interest rates is declining, while the share of repayments is increasing.

The second form is the fixed loan with the so-called repayment replacement benefit. Here the interest is paid to the bank at a constant monthly rate. Again, this is only possible as long as the borrowing rate does not change. The portion that would have to be paid for the amortization is paid into a life insurance. This in turn is paid out at the end of the term of the loan and thus the loan is repaid. On the positive side, the borrower can take advantage of interest rates paid in life insurance.

How expensive is mortgage lending without equity?

An example shows how high the risk premiums of the banks are for mortgage loans without equity. We want to buy an apartment for 400,000 euros and are interested in mortgage lending with 20 years interest rate commitment. The initial repayment is three percent. We have recalculated with the data of Interhyp AG (as of 27.03.2017).

While a financing sum of 50 percent of the object value only accounts for 1.51 percent of the borrowing rate, the best interest rate for a financing share of 75 percent of the object value already increases by 9.93 percent to 1.66 percent bound debit interest. It gets really expensive in the case of full financing, ie financing without equity capital: an impressive 2.65 percent increase in the borrowing rate. This is 59.64 percent more than financing 75 percent of the purchase price and 75.50 percent more than financing 50 percent of the purchase price.

All data for our example tabulated:

loan 200,000 euros 300,000 euros 400,000 euros
Property value 400,000 euros 400,000 euros 400,000 euros
target rate fixation 20 years 20 years 20 years
Tied debit interest rate 1.51% 1.66% 2.65%
Effective interest rate 1.52% 1.67% 2.68%
Monthly Rate 751.67 EUR 1,165.00 EUR 1,883.33 EUR
Share of the loan in the purchase price 50% 75% 100%
interest premium   9.93% 59.64%
Remaining debt at maturity 60,011.47 EUR 86.692,88 EUR 83,951.77 EUR

Date: 27.03.2017, Source: own calculations

The interest for mortgage lending will be staggered after the so-called mortgage lending, ie the share of the loan in the value of the property. As a rule, the best interest is only available on a mortgage lending of up to 60 percent of the real estate. 40 percent should therefore be in the form of own funds. Instead of the mortgage lending, many banks and intermediaries also give the so-called mortgage lending value. This is about ten percent less than the purchase price for a self-used property. Thus, 60 percent of the mortgage lending value would correspond to about 54 percent of the purchase price or mortgage lending.

Our tip

Mortgage lending without equity is much more expensive than one with corresponding equity. Therefore, you should only finance with sufficient equity or without equity if you can afford the much higher monthly installments in the long term. Try not to finance more than 75 or 80 percent of the purchase price in order to avoid excessive interest premiums. Our revenue-spending calculator helps you in determining your monthly free capital.

Cost of real estate loans in Germany

Cost of real estate loans in Germany

The mortgage broker Dr. Plein published in 2018 study results on the amount of initial financing for real estate acquisition in Germany. The study shows in which federal states the average loans were highest or lowest. From this it can be deduced which locations are more expensive or cheaper.

Of course, the income structure plays an important role, but the study says a lot. For example, the loan amounts in 2017 were again highest in Hamburg and on average each house builder and apartment buyer borrowed more than 353,000 euros there. That’s about 12,000 euros more than a year before that. And this despite the fact that interest rates are still at historically low levels.

state Euro*
Hamburg 353464
Bavaria 338507
Baden-Wurttemberg 318446
Berlin 306971
Hesse 304750
North Rhine-Westphalia 266456
Bremen 250582
Brandenburg 247819
Rheinland-Pfalz 246878
Lower Saxony 238395
Schleswig-Holstein 226168
Saxony 218169
Saarland 218162
Mecklenburg-Vorpommern 209318
Thuringia 204449
Saxony-Anhalt 191756

* Average loan amount for real estate loans 2017

Target group of banks and positive aspects

Young families are one of the target groups for banks. Why? Families usually have a good income, but usually have not yet formed any relevant reserves. The least saved is more likely to be scheduled for unforeseen expenses. In a full financing this scope remains, z. B. if repairs are to be made on the house.

The advantage of having a full financing, apart from the permanent liquidity, is that those who are willing to buy or build can decide to buy faster and do not have to wait many years before buying a home. The dream of owning a home can become reality at an early age and nobody has to wait until he has saved tens of thousands of euros as equity. For an amount of 250,000 euros for the home purchase 20% (the recommended equity), for example, 50,000 euros.

What negative points are there to consider and what problems can arise?

The interest rates for a full financing are comparatively high, since the banks let themselves be paid by the interest the higher risk of the missing equity – and thus a part of the usual collateral. In addition, the burden in the eradication is higher, because the rates must be set higher. After all, more money is lent, but the repayment period is not infinitely expansive.

Tips for builders

 

Without a secure income at a level sufficient for the banks, full financing is an absolute utopia. No bank is so generous to lend money if the repayments are doubtful. It is therefore important that the higher income will continue to flow in the coming years. It is also advantageous if at least the additional costs can be covered by equity. Anything over 100 percent will be charged with even higher interest rates.

Even if the new offers mean that many more people can afford their own property, nobody should fulfill this dream prematurely. The funding has to be solid! The center of life should be in the same place for the foreseeable future. If a quick sale has to be made due to a job change, high losses are likely. This also applies to many civil servants, due to a possible transfer.

Attention!

Runtime trap: low interest rates and low eradication lead to an unsightly effect on mortgage lending: the so-called maturity trap. As you can quickly determine yourself with our amortization calculator, it takes about 56 years to pay a building loan of 100,000 euros at 2.00 percent interest pa and 1.00 percent repayment. Even an increase in the repayment rate to 2.00 percent shortens the loan by almost 20 years, so that it is completely repaid after 36 years.

Our tip

Choose the highest possible repayment rate in the low-interest phase. Pay attention to the monthly burden and that it does not bring you to financial limits. That’s how you intelligently shorten the repayment term. If the financing goes over 100 percent, the minimum repayment should be even three percent. Special repayments should also be used. The interest should be fixed for 15 or 20 years. After ten years, the contract can be terminated with a six-month period, which creates optimal conditions for follow-up financing.

However, if the interest rate was comparatively low when the contract was concluded, follow-up financing should be taken to ensure that interest rates are also low. If they are higher, a dismissal should be waived. Due to the semi-annual termination possibility, however, the financing planning can be made very well.

One possibility for obtaining certainty about the further course of financing in advance is the forward loan. This conclude builders and investors some years before the end of the fixed interest period, if the interest rate makes sense.

Important information

A loan for full financing is not given in any amount. As a rule, he may not exceed the mortgage lending value of the property. This means that no money is lent that is not used directly for the property, ie does not relate to construction or purchase value, additional costs etc.

Request loan without credit registration and receive different offers

Are you looking for a cheap loan that can be easily closed? The most advantageous loans on the internet are in circulation. The interest on a loan is determined by the amount of the credit. How much you can borrow depends on various factors such as income and your personal situation. Applying for a loan without a credit registration is most likely a quick approval from the bank.

Find the cheapest loan

Everyone wants to borrow at the most favorable conditions. Do not be blinded at the interest rates in the ads. The bank provides the lowest interest to customers who borrow a large amount. Someone with a revolving credit of 50,000 euros will receive a lower interest rate from the bank than a client who lends only 2,500 euros. This makes sense because the bank earns more money from someone who lends a lot.

Another factor that determines the interest is the spending limit of the customer. The more spending space, the easier the loan can be repaid. This means that the bank runs less risk when repaying the credit. If the spending limit is not so high (but sufficient), the bank will be inclined to charge higher interest rates. People with a negative credit registration listing can get a small loan from specialized companies (at a high cost).

Compare loans

By comparing online loans you can see many offers with low interest rates, but how concrete is this in your situation? As mentioned, the interest is influenced by the amount of the loan, the spending limit and your personal situation. Requesting a loan without credit registration is sent to various credit providers. Upon approval, you will receive an overview with a number of offers for a cheap loan. These large banks have a good personal service and are very reliable. Unfortunately, they do not excel in cheap loans.

Charging expensive credits

With a cheap loan you can redeem expensive loans that cost a lot of money. A credit card, overdraft and a mail order company quickly charge the maximum interest rate that is legally permitted. This rate is 15% over the loan amount. A cheap loan has an interest rate that is well below 10%. This saves a few hundred euros on an annual basis.

How is the effective interest rate of loans calculated?

The effective annual interest rate (effective interest rate) is an important tool for loan seekers. With this value can be different offers with each other # be compared. In the effective interest rate, all costs of the loan are combined.

What is required by law?

The legal basis is Paragraph 6 (1) of the Price Ordinance. In addition to the loan interest, the effective interest rate also includes processing fees, agency commissions and the method of interest and repayment settlement.

Where are traps lurking in specifying the effective interest rates?

The legal guideline stipulates that the effective interest rate must be calculated for the entire repayment term. However, with fixed rates of 5 or 10 years, this is difficult to implement because the level of interest on follow-up financing can not be predicted.

Most financial institutions continue to expect the agreed interest rate. Thus, the same effective interest rate is shown as before. Attention: Savings banks and building societies have experienced problems in the past:

Effective interest rates of savings bank real estate loans partly misleading

Effective interest rates of savings bank real estate loans partly misleading

As the magazine “magazinefix” already determined in 2011, was in some savings bank agreements, the agreement that the loan with variable interest continued to run, unless the parties agreed to the expiry of the fixed interest on a new fixed interest rate.

In the case of a clause in this regard, the Price Ordinance provides that the current interest on floating-rate loans will be used for the remaining term.

If the variable new interest rate is lower than the old interest rate for the fixed loan, the effective interest rate is below the borrowing rate. With the opposite constellation, the credit becomes more expensive.

Combined loans at building societies with inaccurate effective interest rates

Combined loans at building societies with inaccurate effective interest rates

In the case of composite loans from building and loan associations, the effective interest rate for the advance loan and the effective interest rate for the building society loan were both stated. However, the savings amount, the closing fee as well as a possible immediate deposit are disregarded, so that in this case the result will be falsified.

Which additional costs banks often do not take into account

Certain ancillary costs such as estimated costs, provision interest and partial payment surcharges do not have to be included in the annual percentage rate of charge. Banks can thus more easily influence the effective interest rate. If, for example, a processing fee is spent as an estimate, the effective interest rate decreases.

When is the effective interest rate not a suitable benchmark?

When is the effective interest rate not a suitable benchmark?

No suitable benchmark is the effective interest rate for home savings loans, as there are special rules for this. Even with loans that are finally paid off by a life insurance, the effective interest can not be used as a benchmark. The contributions for the insurance are not included in the effective interest rate.

example calculation

Three offers for real estate financing over 120,000 euros with 10-year fixed interest and 2 percent repayment. Payment will be made in four installments every three months.

conditions Bank X Bank Y Bank Z
borrowing rate 3.00% 3.10% 3.20%
Specified effective interest rate 3.06% 3.16% 3.26%
estimated fees 0.30% 0.20% 0.00%
Provisioning interest 0.25% pm 3 month 6th month 12th month
Partial payment surcharge per payment 100 euros
Total charges 2,410 euros 1,365 euros 0, – Euro
Actual effective interest rate 3.32% pa 3.31% pa 3.26% pa

Source: Financial test

As can be seen from the example calculation, a low effective interest rate does not guarantee a favorable financing. Loan seekers are therefore advised to break down all incidental costs.

Compare mortgage lending

Our mortgage calculator helps you to find the best mortgage lending:

Net loan amount: Running time: 5 years ten years 15 years 20 years Mortgage lending: 60% 80% repayment: 1 % 2% 3% 4% 5% 6% 7% 8th % 9% 10% full

Simply enter your desired conditions in the upper fields and start the calculation. You will then receive suitable construction financing offers directly for you.

Loans without Private credit: Serious or not?

Again and again we hear that loans without private credit are dubious. No tidy bank, it is said, would grant loans to those with negative private credit characteristics. That’s not true.

Of course, there are actually providers who work with dubious methods. But there are also car repair shops that exchange more parts than necessary and thereby artificially inflate the bill. That’s why you do not bring your car for repair? Of course, you will still have your car repaired – just at a reliable workshop that works honestly.

The same is true of loans: if you need money, borrow it. The important thing is that you look closely at your partner. This applies even more to loans without private credit than to regular loans.

Beware of “black sheep”!

Because unfortunately there are still “black sheep” among the (alleged) credit intermediaries, which exploit emergencies of consumers. They promise help and fast money in advance. Despite the high fees, however, there is often no credit at the end. So the situation only gets worse.

Therefore, be critical before choosing a provider. Crediter has been working for more than 40 years, recognized and always without any cost. You never take a risk with your request. With the help of the credit experts you can get loans with and without private credit.

Loans without private credit – 100% serious

Crediter knows banking partners who also grant loans to those with negative private credit characteristics. These offers are 100% serious and of course require – as any other funding – a sufficiently high recordable income. Unlike the known big banks, however, a “bad private credit” is not an obstacle on the way to credit.

With a reliable partner like Crediter by your side, loans without private credit are just as reputable as ordinary loans. Countless satisfied customers are the best proof.

Loans for the self-employed

A loan for the self-employed – what needs to be considered?

A loan for the self-employed - what needs to be considered?

Basically, it is more difficult to get a loan when you are self-employed. Private borrowers have much greater benefits and can also benefit from a much lower credit check. The self-employed usually have to submit a so-called economic analysis, since the income usually fluctuates and is therefore less secure. Banks intend to hedge against a potential default.

There are some helpful tips

If some important aspects of a self-employed loan are taken into account, there should be no problems and the loan should be readily available. As already mentioned above, entrepreneurs must in principle submit a economic analysis. This provides information about the economic situation of this company and often includes several pages. The bank checks all the details very carefully.

Note:
In addition, it is customary that the self-employed presents a so-called income statement. The statement should detail the income or loss of a company within a financial year.

This way, the perspective of the company can be better estimated. The income statement must be prepared in accordance with the principles of proper accounting and must not contain any errors – otherwise criminal consequences may follow. In general, entrepreneurs also have to pay a higher interest rate because the risk of default is higher.

Fluctuating revenues make the banks uncertain. The risk of default is therefore financed by higher interest rates. But there are many ways and means to keep the interest burden on a loan small.

Loans for the self-employed – what are the chances?

Loans for the self-employed - what are the chances?

For example, if the self-employed person has collateral such as real estate, the bank’s risk is minimized – depending on the size of the loan. The lower probability of default is therefore rewarded with a smaller interest rate.

Note:
It is also fundamentally important what the loan is used for. Investments that serve corporate purposes and are easy to liquidate are less of a risk. One example would be a service vehicle.

Fixed assets – such as machines – are not easily liquidated. There is a higher interest rate, as in the case of a corporate bankruptcy may arise sunk costs. In any case, it is recommended to do a credit comparison to find out the cheapest offer. The differences are usually very big.

On many Internet portals, such a comparison can be done very easily and quickly. In addition to interest, all other modalities of the loan agreement should be taken into account. This includes, for example, the possibility of special repayment.

Which loan conditions make sense?

In economically strong times of an entrepreneur, a special repayment offers very well, because so interest can be saved. For a balanced interest rate comparison, the annual percentage rate must be considered. Only this interest rate provides a usable benchmark. In addition, the loan agreements of different banks also have different terms. Here it must be weighed, which run time seems meaningful.

Info:
On most Internet portals also a loan calculator is also offered, in which the borrower has the opportunity to enter his individual needs.

The computer then filters out all suitable loan offers. Thus, in the calculator in addition to the term and the desired loan amount can be entered. Lastly, loans can also be obtained cheaply via a third-party liability. This is called a guarantee, which can lead to a lower interest rate because the guarantor is liable in case of doubt.

Tradespeople, to which each self-employed entrepreneur and freelancer counts, have in contrast to employees not a constant monthly salary. The income depends on the order situation. If you do not work, for example, during illness or vacation, there is no income or profit.

Note:
If a self-employed person is interested in a loan, be it to finance investments or to bridge liquidity bottlenecks, it is not possible to apply the same standard of evaluation as for employees. Depending on the purpose of the financing, banks or investors may be considered as lenders. Under certain conditions, state subsidies can also be claimed.

What are the hurdles for self-employed loans?

First, the trader must convince a bank or an investor that his business is bearing fruit and survives. If the potential financiers do not have much faith in the borrower’s concept and economic capabilities, they will invest only small amounts and demand high interest rates.

Before a financier checks whether he can or wants to offer a loan, countless forms must be completed and evidence must be provided. This bureaucratic effort leads to displeasure with the loan seeker, if he has submitted countless documents and then receives a rejection.

Info:
The default risk of the loan should usually be covered by insurance. The financiers, above all banks, like to demand a comprehensive insurance against occupational disability, insolvency and death. These insurance policies lead to additional monthly fixed costs and burden the liquidity.

Conditions for granting loans to the self-employed

An essential condition is the proof of income. This is difficult for business start-ups. As a rule, a business plan has to be presented here which contains best-case and worst-case scenarios. Those who have been self-employed for some time show their income through profit and loss statements or balance sheets. Alternatively, banks or investors accept a BWA (business evaluation).

In addition to the income, the lender assesses the creditworthiness of the person seeking credit. The financial reliability of payments shows to what extent the financier can count on easy loan repayments.

Important:
Collateral should be provable to support a positive credit decision. Real estate, office equipment, private assets facilitate the loan commitment. The risk for the borrower is that the collateral provided is lost if it fails.

A business location in Germany is a prerequisite for lending at most banks.

Persuasion is beneficial when talking to bankers or investors. This “soft factor” should not be underestimated. If the self-employed person is convinced of his company and its success, it can also convince others.

Creative of self-employed loans – but how?

If the collateral does not suffice or the business plan is not convincing, alternative private investors can be sought. In times of low interest rates on savings, many individuals are looking for more lucrative investment opportunities. The required capital can be distributed among several people, making the investment manageable for the lenders. This option is only advisable if loan repayment is easily possible. Otherwise, negative reviews will permanently damage the corporate image.

Note:
Supplier loans are a cheap way to earn money. Many suppliers provide free loans when they meet their primary needs. However, there is a risk of late payment if the supplier immediately forfeits the balance.

Anyone who needs money in the near future, but knows neither the exact amount nor the exact time, suitable for the framework loans. Here, the trader is granted a credit line. How much he retrieves and when is left to the borrower. Depending on the income situation, the loan can be repaid in full or in part. Interest is calculated only on the amount actually used.

A loan from the Employment Agency can also be considered. There is help for start-ups who have little equity capital and only have to endure the initial dry spell after the road to self-employment. The employment agency may apply for own resources if the bank does not grant credit – proof must be furnished. This alternative is only suitable for entrepreneurs with low capital requirements.

5 tips to help with the self-employment loan

1. Be prepared

In order to increase the chances of obtaining a favorable loan, all necessary documents should be prepared and checked in advance. The following questions must be answered: Is there a BWA, profit and loss account or balance sheet that shows a positive result? Does a business plan exist? Which risk insurance policies have been concluded? Is a good credit standing provable – am I a reliable payer? 

Note:
For safety’s sake, apply for a private credit self-assessment. Convincing arguments, why lending to the bank is a good deal.

2. Provide collateral

Check which collateral can be offered for a loan. What should be financed in concrete terms? Is a security assignment possible to secure the financing? Are there any plots of land or real estate that can be brought in? Is there any moving goods that can serve as security? Can a guarantee be considered?

Info:
Is there an additional borrower who can provide collateral? Collateral increases the likelihood of obtaining a loan on favorable terms. However, it must be remembered that in the event of a credit default, the collateral falls to the lender.

3. Check creative loan forms

In addition to the loans from banks or investors, there is also the possibility to receive money from private individuals. For private investors to invest their money, it must be a lucrative, serious offer. The risk should be spread over several people and the individual amount should not be too high. To avoid damage to the image, this option should only be selected if the borrowed money can be safely repaid.

Note:
Another option is to obtain free loans from suppliers. If the main purchasing volume is covered with them and the repayments are made regularly, this is a cheap option. Frame loans are an alternative to the classic installment loan. Here, a credit line is set, which can be fully or partially exhausted and repaid.

4. State funding

The state also supports self-employed by very favorable conditions, a pro-rated indemnity and fixed interest rates. Funding is provided for investments, operating resources and company acquisitions. Alternatively, financial help can be obtained from the Employment Agency. In addition to a start-up subsidy, the purchase of material is possible. The condition is that the bank has refused a loan. Furthermore, the subsidy amount is limited.

5. Do not be discouraged

Last but not least, stamina is needed. Even if the first request does not make a positive decision – do not give up! There are many ways to get a loan or a cash injection. The classic ways, such as banks and investors, are not successful, then new paths. Your own creativity knows no bounds here.

Note:
If you want to be successful as an entrepreneur, you have to go new ways. In addition to the classic forms of credit and lenders, there are others. Just look outside the box and ask in the neighboring countries.

Redevelopment of loans why buy back loans?

What is the reorganization of credits? it is a financial solution that fits perfectly to every household indebted strongly or little and you even avoid a sale of your property in case of a hard blow. In a few sentences here are the essential points of this operation.

The redevelopment of loans is not a financial solution intended only for people in a situation of excessive indebtedness, it is also a tool for good management of its budget, financing of works or investment projects for the owner and the tenant.

Purchasing power is a major concern for all households and managing a budget when you have several credits is juggling several monthly loan payments, several monthly recurring charges and accidents, all these amounts are levied by different organizations on different dates and for sites that do not necessarily coincide with a sufficient credit account.

Real estate credit, car loan, personal loan, money reserve and other consumer credit are added to taxes, insurance, heating costs, electricity, water, telephone, … with ultimately a debt greater than 35%, percentage ideal maximum, and difficulties in containing its budget.
The reorganization of credits makes it possible to take advantage of the still very low rates at the moment and above all this redevelopment is often contracted over a longer amortization period, thus making it possible to find a sound management of its budget.

Grouping all of its loans means giving ourselves the means to better live on a daily basis and to reorganize a margin of maneuver in the event of a life accident.

Here is clearly what we propose for your credit restructuring in 2018:

• We want a contact by phone or internet quickly, to understand your wishes and the details of your situation , even difficult.

• You will receive within the hour an admissibility (or a refusal) with your new monthly payment including all costs , as well as login and password to easily scan your documents on your “secure space”.

• You will accept or not to return the credit offer you will receive very quickly (directly from the bank), and we will have chosen it together as being the most interesting for you!

• The offer of credit in hand is valid between 1 and 2 months, at this stage you are not engaged , you have the solution under the elbow, free, and, returning it “signed for agreement” to the bank, your loans will be immediately refunded. After this period of validity the offer will be automatically canceled, without any cost.

• You do not change banks. It is the chosen bank that will refund your credits. The monthly payments will be deducted from your usual account. Your information and proof will only be sent to our partner banks ( we do not sell them as the “comparators” do ). No money will go through us.

PRACTICAL ADVICE:
Maximum duration: 12 years for the tenants / Simulation redevelopment of credits even if rejections of levies, delay of taxes, various debts, …
Maximum duration: 15 years for the owners, Simulation redemption of credits without mortgage.
Amount lent: up to 100.000 € for tenants, 200.000 € without mortgage for the owners, 400.000 € with a deposit for the owners and beyond with a mortgage at the notary who will take care of refunding the organisms.
Treasury: with or without proof (following file)
From 18 to 95 years old age limit of end of credit.

You have a withdrawal period of 14 days following the signing of your contract to renounce your credit. The lower monthly payment leads to the lengthening of the repayment period. It must be assessed in relation to the remaining duration to be covered by the loans that are the subject of the combination. A credit commits you and must be repaid. Check your repayment capacity before you commit.
No payment of any kind whatsoever may be required of an individual before obtaining one or more loans of money, in accordance with the law L321-2 of the Consumer Code.

“The drop in the monthly payment leads to the lengthening of the repayment period. It must be assessed in relation to the remaining period
to run loans objects of the grouping. ”

 

Is a loan without private credit reputable?

Can a loan without private credit be serious? Many consumers ask themselves this question. The answer is yes, non-schafafie loans are completely reputable – provided that the settlement is fair, correct and transparent.

Normally you need a “good private credit” for a loan. If the credit report contains negative features, the big banks often reject the request. In the “credit factories” of the big financial houses just no room for individual case checks.

Who has a “bad private credit”, so he automatically gets a rejection.

Especially bitter for those affected: Because the private credit from the calculation of the so-called score value makes a big secret, is often not even clear how the bad rating comes about. Consumers who pay their bills on a regular basis and meet their loan obligations are also unsure of a negative assessment by the private credit.

The big banks are not bothered by recurring reports of oddities in the private credit. They continue to use score as an important tool in their lending decisions. The fact that many interested parties fall through the grid, which could actually get a loan – the bank manager obviously does not care.

Innovative providers like Crediter have set themselves the task of helping people in difficult credit situations. The finance experts often start their work there properly, where others have long ceased.

Even with a bad private credit, you can get a cheap loan in many cases via Cre Loan.

When a loan without private credit is serious

How can a credit without private credit be given seriously?

The banks, which also lend to customers with bad private credit loans, do not focus on the score value. Sometimes they even completely ignore him. Rather, the banks look at the financial situation of the interested party. If the spending fits the revenue and there is still room for a loan, then there is nothing in the way of a financing commitment.

At Crediter you get your credit without private credit reputable and no cost. You also get your offer 100 percent free of charge and you do not have to pay a penny in advance.