You want to finance a purchase or need money for an important event like your wedding? In these cases, the personal loan is the means of choice, because it is easy to apply for and is also very cheap by our credit comparison. In the following, we will show you what exactly a personal loan is and what you should consider.
Personal loan – your uncomplicated and cheap financing
The term personal loan is not a protected product name, but now stands for different types of financing. The most common variant is the bank loan for private individuals. Here is the term personal loan so in contrast to loans for business people.
Alternatively, there are also special loans that are given by private individuals to private individuals. A good example would be if you get a loan from a good friend or colleague. There are now specialized marketplaces where potential prospects and private lenders can meet and agree on a personal loan.
I would like to apply for a personal loan – what should be considered?
If you are interested in a personal loan from a bank, you should first compare the offers before selecting the bank. Our independent credit comparison helps you to check the various personal loans and find the right offer at the end. In addition, these points are particularly important in the choice of credit:
1. Compare the right interest rates
Each loan comparison shows different interest rates of the individual banks today. You should differentiate between the borrowing rate (nominal interest) and the annual percentage rate. While the debit interest only takes into account the pure interest, the annual percentage rate includes further costs. This is required by law so that banks can not deceive consumers by supposedly low interest rates.
According to §6a Price Indication Ordinance (PangV) the following costs are included in the annual percentage rate:
- The nominal interest
- Agency fees for the loan
- Any account maintenance fees (if permitted)
In addition, all costs that are directly related to the proper completion of the loan. On the other hand, default interest or a residual debt insurance are not included.
If you compare the effective annual interest rates of the individual banks in your credit comparison, you get a true picture of the costs and can ultimately save a lot of money!
2. Select the appropriate runtime
The term of your personal loan is another important factor that you can determine. Their length has some effect on the repayment of your loan:
- The longer the term, the lower the repayment rate
- The longer the term, the higher the interest costs
A personal loan of 8,000 euros will be offered at the interest rate of 3.99% per annum. This results in the following numbers:
Table 1: Effect of the term on the installment amount and the interest cost of a personal loan
|Personal loan term 2 years||Personal loan maturity 4 years|
|loan amount||8000,00 €||8000,00 €|
|Effective interest rate||3.99% pa||3.99% pa|
|running time||2 years||4 years|
|Repayment rate (per month)||347.11 euros||180.34 euros|
|Interest costs (term)||330.65 euros||656.42 euros|
|Cost difference||325.77 €|
As you can see, interest costs are almost doubling. They reduce the residual debt much more slowly and have to pay interest on this amount every month. Thus, a longer term reduces the repayment rate monthly, but you will have to pay much more for the loan over the entire period.
For this reason, it makes sense not to set the term too long to save money. Nevertheless, the monthly burden of the loan should be easy for you to handle.
3. Pay attention to further achievements
The interest rate is of course the most important decision criterion for a loan. Nevertheless, you should also consider the other features that your loan brings with it. What is interesting, decides your financial and personal situation:
- Pay back your personal loan faster: If you expect a larger sum of money in the foreseeable future or if your income will lead to further surpluses, special unscheduled repayments are interesting. So you can repay your personal loan out of line faster, without having to pay a prepayment penalty. This ultimately reduces the cost of credit tremendously.
- Changing the loan rate: It can sometimes be helpful to lower or increase the loan installment. Normally, this is either not possible at all or only for a fee. However, there are also private loans, where rate adjustments are possible free of charge.
- Particularly fast loan payment: If you need money fast, even a fully digital personal loan can be interesting. Here, the entire application process including the signature runs digitally and you can already get the desired loan amount after 24-48 hours.
- Special Purpose: If you want to buy a car with the loan or a car loan or reschedule for expensive loans, this is best stated in the intended use. Banks can offer cheaper interest rates in these cases, saving you money.
Where can I get the cheapest personal loan possible?
Personal loans are provided by banks as well as by traders and other individuals. Of course, ask yourself where the loans are particularly favorable. At first glance, traders (eg car dealers, electronics dealers or furniture dealers) are in the lead because they offer attractive financing. The personal loan does not come from the dealer itself, but from a partner bank. However, such financing has disadvantages:
- Low interest rates make you want to buy and make sure you can buy something you do not want.
- With cash, you could get attractive discounts from the dealers, who often overshadow the financing terms.
- You can not compare because the trader only works with one bank.
Personal loans from private individuals often have worse conditions than a private loan from the bank. You can often get them with a slightly lower credit rating. A closer look at the conditions is also appropriate here.
With our credit comparison to the cheap personal loan!
If you are looking for a cheap financing, which can also be easily applied for, you should opt for a personal loan. With our credit comparison, you can quickly find the personal loan that fully meets your needs. In addition, you save a lot of money through the interest rate comparison. Access!