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How to find the cheapest loan offer

A loan offer in banking and finance is a binding offer of a loan or loan that is opened by the lender. Because even if a loan is anything but unusual today, standardized offers are still only touted in very few cases. There are always promotional offers and more, but most lenders often require certain requirements from the loan seeker. For example, this could be a minimum income or certain types of protection. However, nowadays anyone can get a loan, even those who have a negative credit rating, low income or a temporary job. This is exactly why loan offers differ from each other.

Credit customers are just as different as different lenders and thus various loan offers can be. Because a loan offer mostly consists of the loan amount, the term, the interest, the overarching costs and, last but not least, the repayment conditions. But what does that mean in detail and in relation to the comprehensive range of lenders and loans? Because one loan is just as little exactly like the other as the different lenders can differ from each other minimally or drastically. For example, there are loans from the house bank, but also from independent or even private lenders.

Often the most advantageous offer: the loan from the house bank

Often the most advantageous offer: the loan from the house bank

The most popular and often the most advantageous loan option is often to take out a loan or a loan from your own bank. The reason is that they often lure their customers with very low interest payments and long contract and therefore repayment terms. This is possible because most savings banks and house banks take a relatively low risk compared to other lenders when lending to their customers. After all, they know their customers, their economic situation and can (depending on the customer’s case) often look back several years in order to get a better picture of the customer and his financial situation. Therefore, the way, if you are looking for a suitable and cheap loan, should always include a detour to the house bank.

However, these are the only ones who make their loan commitments to a limited extent and only to customers who are really creditworthy and creditworthy. This could make it difficult, especially for customers who have one or the other risk. Because at the house bank, a negative factor in the evaluation and review of the application can often result in the loan being refused or a loan offer being excluded.

Loan offers from credit institutions or private providers

Loan offers from credit institutions or private providers

In this case, independent or private lenders are a welcome alternative. Because in most cases they already take on a higher risk due to the award, since in most cases they simply do not know the customer well enough to be able to really assess the possible risk, they calculate differently when it comes to their loan offers and application checks than the house banks do. However, this is also noticeable in the fact that most loan offers come with higher interest rates – because this enables the creditor to be rewarded for the increased risk. Depending on the lender, loan offer and customer, the interest rate can be on average up to three times as high as at the house bank. But it doesn’t have to, which is why you should always carefully examine and compare loan offers from independent or private loan providers. Here, too, the loan offers differ immensely and so you can also find a loan with extremely advantageous as well as less advantageous conditions.

Instant loans and loans without Credit Bureau query and with increased risk

Instant loans and loans without Credit Bureau query and with increased risk

Uncomplicated instant loans, credit-independent loans or loans without proof of income as well as without Credit Bureau query are more in demand than ever. This is because the economic situation has changed drastically. Today, only a very few employees have an open-ended employment relationship, low wages are the trend and entries into the Credit Bureau are unfortunately no longer uncommon because of this. However, banking and finance have adapted to this situation. There is now a suitable loan offer for almost every loan seeker – even if the loan approval is to be immediate and binding and without any evidence of creditworthiness or income. However, with every factor that excludes any collateral for the lender, the risk that the lender takes with a loan offer and / or a loan commitment increases. And every lender can “pay” this – for example through higher interest rates, through deposits, through special insolvency insurance (which must be financed entirely by the customer), through a guarantor or through other forms of security.

From loan offer to loan contract

From loan offer to loan contract

However, credit is by no means always the same as credit. For most loans and loans, however, the offer procedure is similar: and before a loan offer can become an actual loan contract, the customer usually has to first apply for a loan. This is then checked by the lender, for example on the customer’s creditworthiness and creditworthiness. There are also other valuations, such as the additional collateral offered, which the applicant can provide. The following applies here: the better the customer performs in these tests and assessments, the more advantageous the loan conditions are in most cases. Very positive conditions are shown, for example, by low interest rates, a high approved loan amount and a long term of the loan, which in turn means low repayment rates.

After the evaluation, there is now either a loan approval (provided the customer has submitted an application for an advertised loan offer) or a loan offer on the part of the creditor (lender). Incidentally, it often happens that the customer makes a different loan offer if the customer does not meet the requirements for a desired offer, for example because the creditworthiness or income is too low. If both sides ultimately agree, the loan agreement can be concluded. In this contract, the precise conditions are laid down to safeguard both sides of the contract. Incidentally, this is not only recommended for consumer credit, it is also a duty. If a purely private individual concludes a credit agreement with a lender orally, the verbal agreement is void. The only exceptions are business loans.

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