Loan Calculation | 3 factors determine the interest!

The loan calculation is an important part of every loan comparison. Here, the immediate costs are determined and compared. Many comparison portals offer the credit calculation online. But not every online loan calculator takes into account the different interest rates. Why you have to pay interest at all, what you should know about credit and interest and what you should pay attention to a loan calculator, you will learn in the following guide!

All facts about the topic “Credit Calculation” at a glance:

  • Lending rates are a rental fee
  • The key interest rate, the competition and the creditworthiness of the customer influence the lending rate
  • The interest can be paid monthly or final
  • Interest may be expressed monthly, annually or as a total interest
  • In addition to interest, other credit costs may aris

1. Why pay interest at all?

1. Why pay interest at all?

No matter whether you take a loan from a bank or another financial service provider, you have to pay interest everywhere. In a loan, you borrow as a borrower – debtor – money from a lender – creditor. For the loan period, the lender requires a rental fee, which is referred to as interest. The exact definition of interest is, according to the third edition of the economic lexicon by the beck economic adviser in the dtv: ” price for the release of money as a loan, which the debtor must pay to the creditor. “

Theoretically, the amount of interest is a matter of negotiation between the debtor and the creditor. This is especially common among private lenders. But here, too, the creditors are required to abide by the rules of commercial honor and not to exploit the possible ignorance of their debtors and to over-exploit them. Nevertheless: contract is contract! Therefore, you should inform yourself before signing the contract about the current interest rate.

As a rule, the lending rate is adjusted to the base rate and is a few percentage points above the interest rate. This means that borrowing money is always more expensive than investing money. The key interest rate is announced by the European Central Bank. It serves as an instrument to artificially regulate inflation and economic power. He is currently at a record low. Thanks to worldwide networking and communication, creditors from all over the world are under enormous competitive pressure. Thanks to new credit methods, such as crowdfunding or platforms that bring private lenders and borrowers to each other, the financial service providers are experiencing an interest rate hike.

The risk of being cheated is now as low as it has not been for a long time. The ever more detailed data collections make it possible that not only intelligence services, but also credit bureaus have sensitive data of the debtors and classify them according to their behavior as trustworthy or not. These are, on the one hand, the private credit, but also other private credit bureaus inside and outside Germany. The assessment of these credit bureaus with regard to the creditworthiness of the creditor is decisive for the amount of the interest rate.

The creditworthiness of the creditor contributes significantly to the amount of the loan

This is true not only for crowdfunding and credit intermediaries, but also for the big banks. The worse the valuation, the higher the interest rate is estimated. After all, the creditor buys with the payment of interest a piece of confidence. The lower the basic confidence in the creditors’ ability to pay, the more expensive the risk taken must be paid.

Lending rates are lending fees to the creditor. The amount of interest depends on various criteria, but is roughly made up of the key interest rate, the pressure of competition and the creditworthiness of the creditor. It basically does not matter which form of lender it is.

2. Which interest invoices are there?

No matter how you calculate a loan and its installments, the lending rate is always proportional to the loan amount. Now, there are various forms of repayment of a loan. This is the bullet loan or the annuity or repayment loan. The last two loans are discussed in great detail in the counseling loan repayment.

In the case of a term loan, there is the option of monthly interest payments during the term, but the loan is repaid as the sum at the end of the term. In addition, it is also possible to pay back the loan amount together with the interest payments at the end of the repayment term. This form of loan has the enormous advantage that the debtor can let the capital accumulated during the term itself interest and interest. For the creditor, however, this means a huge risk, because he learns only at the end of the loan agreement, whether the debtor actually fulfills its obligations.

Another form of repayment is the annuity loan. For this loan, the monthly burden is always the same. Over the term of the contract, the proportionate repayment amount increases and the proportionate interest amount decreases. Simply put, over five years, 100 euros are paid monthly. At the beginning, these 100 Euro consisted of 90 Euro interest and 10 Euro loan repayment. In the last installment, the interest is only 10 euros and the loan repayment amounts to the last 90 euros.

The situation is different with a repayment loan. Here, the repayment amount is constantly the same, but the interest amount decreases as the loan amount goes down. For example, a loan of 4,800 euros over two years will be paid. The monthly burden amounts to 200 euros, the interest is 10 percent. With the first installment, in addition to the repayment of 200 euros, 480 euros have to be paid. After one year, the repayment amount still amounts to 200 euros, the interest amount, however, only to 240 euros. And at the last installment 200 Euro repayment and 20 Euro interest are due.

Comparison of the four forms of credit

Of course, the monthly charge is highest for the repayment loan first

Especially with online financial statements, the creditors should read exactly what charges actually come to them and how the interest is composed and what he refers to. This often makes a comparison on the basis of the credit calculation difficult. Being able to calculate credit interest is usually associated with a lot of lateral thinking. Carrying out a loan calculation online offers a welcome help. But if you can always rely on that, see the next section.

There are several ways to repay a loan. For all, interest payments play an important role. These are usually based on the remaining loan amount, unless it is a bullet loan. In the case of term loans, the interest is either broken down to the months or paid back in total at the end.

3. What should be considered with the interest calculator!

Nearly every financial service provider offers their customers to calculate the desired loan with a monthly charge. There are also numerous comparison calculators, which perform the credit calculation online and compare the loan offers of different creditors. However, a direct comparison of the various providers often turns out to be difficult.

Once there are those who only specify the monthly interest, those who indicate the annual interest and those who specify the total interest. The total interest rate is the effective price when you add up the interest payments and put them in relation to the loan amount. This is also gladly sold to the customers as the total cost, but unfortunately it is usually not that easy.

Whether it’s short-term or long-term loans, lending it alone is not enough. Especially the cheapest loans often have hidden costs, which only become noticeable during the loan period. This can result in severely limited service or high fees for special repayments or early loan repayments. These are all factors that must be included in the decision.

To use a credit calculation as a decision aid is relatively difficult. Here are above all different information an obstacle. In addition, the level of the interest rate alone should not speak for or against a particular loan offer. Here, all costs have to be compared.

4. Conclusion: The lowest loan rates are not at the same time the best loan offers

Lending rates are demanded by the creditors as a kind of rental fee. The amount of the interest is composed of criteria such as the current interest rate, the debit interest of the competition or the creditworthiness of the debtor. The monthly interest payments are usually dependent on the amount of the remaining loan amount, unless it is a bullet loan. The lending rates can be calculated in order to perform an objective comparison, is usually a complex task. Here it is advisable to carry out the credit calculation online with the help of a loan calculator. Borrowers should check our 2019 bank loan comparison for favorable lending rates. Overall, however, one should pay close attention to the actual comparability of the data. In addition, the loan rate alone is not a sufficient decision criterion, since other costs for the calculation of credit also play a role.

Express loan without proof of income

 

There can be a variety of life situations in which a consumer relies on a readily available loan amount. In the banking industry, this type of loan is referred to as a so-called “urgent loan”, which is particularly noticeable in that there is only an extremely short period of time between the application for a loan and its disbursement.

Urgent loans are usually offered less frequently by traditional branch banks, but increasingly by direct banks and online credit intermediaries. A special variant of the express or instant loan is the “Express Credit without Information”. With such an offer, the prospect does not even have to submit proof of income in order to receive a loan payment. The following article deals with the topic “Express Credit without Information” and compares the credit offer of four reputable credit intermediaries.

Challenge “Express Loans without proof of income”

With regard to the general requirements for lending, which are common in the German banking industry, it quickly becomes clear that an emergency loan without proof of income is a real challenge. Alone, the almost direct payment required by the customer causes many financial institutions to “worry”. Almost always, the submission of credentials and proof of income is a mandatory criterion for lending, which, however, for example, by mail, ensures that a certain amount of time passes. For this, most banks need an internal processing time, which is an average of three working days. The requirements of an emergency loan, of course, do not do justice to such framework conditions, which is why you as a borrower must be aware that you can not contact each bank with the desire for an urgent loan. The fact that the required loan is to be paid out entirely without filing proof of income ensures that a maximum of one “handful” of banks can be chosen as a possible loan partner.

Is an express loan without proof of income reputable?

Is an express loan without proof of income reputable?

Of course, as it is impossible for traditional retail outlets to obtain a loan commitment without the prior submission of income documents, many credit seekers are wondering if an on-loan loan without proof of income can be reputable at all? Express loans are mainly offered on the internet and by online credit intermediaries, where, of course, very serious and experienced lenders also have “black sheep”. Such companies offer, for example, the allocation of a direct or instant loan (usually SCHUFA-free and without proof of income), require for the requested loan is requested, but the payment of pre-cost. Such approaches are extremely dubious as the creditor pays the required fee in most cases and then directly receives a rejection of the loan he wants. In principle, however, it must be said that an express loan, which is submitted without the submission of income documents, must have nothing to do with dubious business practices. Finally, it is up to each bank to determine which criteria the borrower must meet for lending. If a bank says in this context that loans can be given up to a loan amount of, for example, 2,500.00 euros as a rush credit without proof of income, then speaks in purely legal terms nothing against it. Of course, it should not be forgotten at this point that there are always clear limits with regard to the maximum loan amount for a rush credit. However, should a bank offer a loan amount of € 10,000.00 or higher, without a proof of income by emergency credit – so should ring with any prospective creditors all the alarm bells! Such an offer can under no circumstances be serious, as a hundred percent unsecured lending on such a scale would bring a disproportionate risk to the bank.

Trucredit – Assessment of Express Credit Offer / Proof of Revenue

The credit marketplace ” Trucredit ” brings together potential creditors and private investors or lenders and thus ensures the award of so-called “peer-to-peer loans”. As far as the possibility of an emergency loan is concerned, although there is nothing on the credit intermediary’s home page about Trucredit, there are good opportunities. This is because credit inquiries made by Trucredit in the form of a “project” are approved within two hours in 50 percent of the time, according to the credit intermediary. This makes for a very short processing time, which can be optimal in two working days (Source: FAQ for borrowers – Trucredit.de). With regard to the possible selection of loan amounts, loans with a value of between € 1,000 and € 25,000 can generally be requested via Trucredit. It is of course clear in this context that under the pretext of an emergency loan, it is above all credit requests with small amounts of credit, for example 800.00 or 2,000.00 euros, which quickly meet the approval of private investors. As far as the filing of income documents is concerned, while Trucredit does not necessarily have to have a classic, fixed salary, a certain repayment capacity must be apparent to private investors. If you can not bring in proof of income, Trucredit will only get ahead if a solvent guarantor or a second borrower is involved.

Creditend – Assessment of the Express Credit Offer / Proofs of Income

 The well-known through numerous TV advertising credit brokers Creditend offers on its website a so-called “quick loan”, which meets all the requirements of a typical emergency loan. The Creditend-Schnellkredit should be in the best case after 24 hours on the account of the borrower, so in connection with this loan offer can be really of a rapid processing. As for the loan amounts, so the quick loan can be applied for an amount of 1,000.00 €, while there is an enormously high maximum limit of 120,000.00 € (at this sum and already from sums above the 10,000 euro limit however, doubt whether the processing of the exam, grant, or even payout can really take place within a single day).

As a credit intermediary Creditend works together with numerous national and international banks, which ensures that due to the large offer attractive conditions, for example, 2.49% offered (as of 03.03.2016 – credit-conditional condition of Bank of Scotland). As far as the issue of “proof of income” is concerned, there is no indication on the Creditend side that offers are currently being made where the borrower does not have to submit any income documents. This is mainly due to the fact that Creditend works mainly with traditional branch and direct banks, which of course always demand a proof of income. It is important at this point, however, that there are also loans from private individuals at Creditend, which could possibly lead to exceptions for small loan amounts. When it comes to a cheap loan with extremely fast processing, so Creditend is definitely a recommended source.

Cre Loan – Assessment of Express Credit Offer / Proof of Revenue

 According to its website, the credit intermediary Crediter offers an instant loan offer up to a loan amount of 100,000.00 euros. In this case, Crediter guarantees an immediate processing of all credit inquiries, which in the best case should lead to a processing time of four to five working days (including return of the credit agreement and transfer time). Although Crediter works with both national and international credit institutions, income proof is still a high priority. While the provider obviously advertises that he offers the brokering of schufafreien loans, it is not possible to take out an urgent loan without proof of income according to the current credit-credit provisions (source: “All information / requirements” – Bonkredit.de). Cre Loan is a very good address for attractive conditions and high loan amounts, but a credit without proof of income is sought in vain with this credit broker

Maxcredit – Assessment of the E-Credit Offer / Income Proofs

 The credit broker Maxcredit advertises on its website with an “online express loan”, which is characterized by a particularly short processing time. According to the information provided by the Maxcredit FAQs, a cash payment / check will only take a period of three days. Of course, it is always important at this point that all documents for the credit check are available and a short transfer time is created on the bank side.

Conditionally Maxcredit is quite attractive, so that emergency loans can be taken from an effective annual interest rate of 3.99%. Basically, the credit intermediary Maxcredit calls for submission of income documents in all loan requests. Exceptions can only be made in the case of a request with an existing guarantor / co-applicant, which always depends on the loan amount as well as a case-by-case decision.

Conclusion: Even though a bankruptcy loan is anything but easy to do for the bank, there are numerous credit intermediaries and online banks, some of which ensure extremely fast loan repayments. With a very short-term need of money, the urgent, quick and instant loan offers are really recommended. However, without the submission of proof of income, serious credit offers are the absolute rarity. There are opportunities in this area only for very small loan amounts or if the desired credit is provided by private investors who are satisfied only with other collateral such as a guarantor or other co-applicants.

Loan, the Online Personal Loan: Requirements, Rates, Withdrawal Time and Amounts

 

Loan is a personal loan, reserved for individuals as credit for the purchase of goods or services that are not related to professional activities carried out. It is supplied by InDirect and is characterized by being extremely flexible and at no expense. In fact, there are no costs for the opening, closing and management of the loan. The loan lasts from 12 to 84 months and the amount is between 3,000 and 50,000 euros.

In this way it is possible to meet the needs of a wide variety of users. One thing to keep in mind when talking about Loan is the fact that you can take advantage of the free skip options and reduce installment. In the first case, the user is allowed to skip the repayment of the installment three times, in the latter to reduce the amount by two times at most. A fixed TAN of 6.95% and an APR of 7.63% are applied. However, you can link the Loan to your Account if you have both products. In this case the installments are debited directly to the current account and therefore the bank guarantees a 0.50% discount on the TAN.

Requirements and methods of delivery

The Loan can be requested both online and in the branch and the procedures last a few minutes. In particular, the times are extremely reduced when you have an Account on which the salary was credited. Just fill in the appropriate form with your details and those of the loan. If you opt for digital mode simply upload the documents to be attached and validate the request thanks to the digital signature. In a few minutes you get a partial result and then the final answer from the credit institution, once the request and the attached documents have been verified.

If the application has been accepted, the amount of the loan is credited to the current account indicated by the customer in a short time. Also remember that on the page dedicated to the Loan you can calculate the quote for free. Finally the funding can be managed in first person remotely and online. In the first case, just use the dedicated app (available only on smartphones and tablets that support the operating system Android or iOS), in the second you must access the Customer Area of ​​the Internet site of the bank using their credentials.

Some elements to keep in mind

Some elements to keep in mind

Opting for a loan through the Loan allows you to take advantage of some additional services. First of all, it is possible to have access to advantageous conditions in the event that the beneficiary of the loan wants to carry out sustainable projects. To obtain the reimbursement of one third of the interest, one or more bank transfers must be carried out within 12 months of the loan, aimed at supporting energy redevelopment work for an amount equal to or greater than 70% of the loan. Also within this date, the documentation that certifies the filing of the documentation is sent to the bank.

The amount to be repaid is divided into units to be paid every 12 months until the loan has expired. It should also be noted that the beneficiary of the loan can take out an insurance policy to protect himself against the risk of not being able to repay the Loan in certain circumstances. In this case the insurance premium is integrated into the same monthly payment for the repayment of the loan. The protections are designed according to the profession of the beneficiary, who can be considered as an employee, self-employed, non-employee or a non-worker (for example, a pensioner).

In all three cases protection against death, serious illness and permanent total disability caused by an accident or by an illness are foreseen. For workers, insurance coverage against loss of work was also provided for. Finally, the self-employed integrate protection against the risk of accidents, serious illness, hospitalization and total temporary incapacity (due to a disease or an accident).

Real estate loan | Compare real estate financing

Buying a property is such a big investment for many people that the available capital is not enough. You also have to borrow money to finance the mortgage.

Various building blocks are available for this purpose, such as state subsidies, home savings loans, KfW loans or real estate loans. The most common form of mortgage lending is the mortgage loan, for which the property serves as collateral. Private individuals normally use the so-called annuity loan, in which fixed interest rates and a fixed monthly installment are agreed for the entire term.

The rate is composed of the interest and the agreed repayment installment. At the moment, interest rates are very low. Therefore, it is worth considering to agree a higher initial repayment than the usual 1%.

Then the real estate loan is paid off faster. The decisive factor, however, is that the owner of the property can pay the monthly installment in the long term without being too restrictive or even having difficulty in financing the mortgage. For the real estate loan usually a fixed interest period of five, ten or 15 years applies. But it can also be agreed to a longer term.

Mortgage lending with fixed interest

A real estate loan is currently available at historically low interest rates. Even with a fixed interest rate of 15 years, they are sometimes below 3%.

It is worthwhile in any case to compare the conditions of different providers carefully. Because it is about large sums, even a tenth of a difference means a lot of money. When comparing comes not on the debit interest, but on the APR, because it also includes all utilities and fees. Anyone who informs themselves on the Internet should not forget that banks and other mortgage lenders calculate their specific offer individually.

They include income and assets of the customer and the amount of equity. If you make special repayments, you may have to pay a slightly higher interest rate. For this he has the opportunity, for example, in an inheritance or a salary increase to partially replace the real estate loan prematurely.

Do not forget follow-up financing

In many cases, mortgage lending is not fully paid off when interest rate lockout expires. Then a follow-up financing for the property is required. In principle, the same rules apply as for initial financing. In times of low interest rates, it can be worthwhile to secure follow-up financing in advance with a so-called forward loan. For a certain fee, the current interest rate will then be fixed at the time the follow-on financing is required. However, this is a speculation for future development. Because it can happen that interest rates continue to fall and follow-up financing becomes more expensive than necessary.

Loans for real estate abroad

Loans for real estate abroad

A property abroad is increasingly in demand. Usually, however, such is acquired only in a later stage of life. Therefore, it is often necessary to agree on a higher eradication. It is advisable to first check a financing through a German bank. A foreign real estate can basically be financed by a mortgage loan or a building society loan.

The providers usually take care of all formalities such as purchase contract, appraiser, mortgage purchase and land registry. However, there are extra charges for this.

Foreign property through an international financial institution

Financing abroad can be considerably more time-consuming. Thus, the prospect will often find that the interest rates are sometimes much higher than in this country. In the case of real estate outside the euro area, there is also a certain foreign currency risk as the loan taken out is subject to currency fluctuations.

And, of course, caution is also advised when it comes to foreign lock offers, which are also fraught with numerous risks. These risks can be hedged to a certain extent with the help of foreign currency bonds or special certificates. However, it should be noted that this increases the financing once again considerably.

At the same time, in many countries there is only one variable interest rate in the area of ​​mortgage lending. In countries such as Spain, on the other hand, it can sometimes be very difficult to identify the actual costs of financing. In addition, expert’s fees and fees for a land register extract are due in advance.