How does an instant loan with special repayment work?

Private borrowers in Germany no longer just want a loan that can convince with a low interest rate; for many borrowers, application, availability and flexibility in repayment also play a decisive role. The trend in borrowing today is clearly towards online loan products, because these can very often convince with quick and easy application, flexible repayment and low interest rates.

Especially when it comes to the speed of application and availability, instant credit products from the Internet often have the edge. Today, quite a few banks also offer an instant loan with a special repayment. The special repayment proves to be extremely practical for the borrower, because he can make use of an additional and flexible form of repayment. The amount of the special repayment is variable and can be individually influenced by the borrower within a certain framework. It is not uncommon for the special repayment to make up between 30-50% of the remaining debt per year, so the option for the special repayment makes perfect sense.

Instant loan with special repayment – This advantage arises for the borrower

Instant loan with special repayment - This advantage arises for the borrower

As already mentioned, the special repayment is an additional repayment that can be made at the borrower’s discretion. For example, if the borrower can unexpectedly raise money through an inheritance or other circumstances, he can use it to repay the loan. Due to the special repayment, the residual debt can be reduced directly and the loan liabilities can be prematurely released. Since the total interest costs for all loans with installment repayment are determined from the remaining debt, the borrower can significantly reduce the total loan costs through a special repayment.

Secure instant loan with special repayment at a low interest rate – this is how borrowers secure the best conditions

Secure instant loan with special repayment at a low interest rate - this is how borrowers secure the best conditions

Borrowers who want to call up an instant loan with a special repayment at the best interest rates and save a lot of money should of course focus on the interest conditions when making the comparison. The effective interest rate should always be selected as the basis for the loan comparison, as this is variable in amount. In addition to the bank’s borrowing rate and fees, the effective interest rate also includes factors such as term and loan amount and the borrower’s credit rating. In practice, borrowers with a positive Credit Bureau and a high regular income can always secure an instant loan with a special repayment at the best interest rates. The same applies to borrowers who choose a short term and a low loan amount.

Compare instant loans with the option of special repayment – be sure to use the loan calculator

Compare instant loans with the option of special repayment - be sure to use the loan calculator

Only by comparing credit calculators on the Internet is it possible for the borrower to quickly and easily compare several credit products with regard to specific requirements (term, income, loan amount and much more). The loan calculator comparison often allows very low interest rates to be called up.

Instant loan despite bank refusal

If an application for a loan is rejected by the bank because the loan applicant does not meet the required requirements, many of those affected wonder whether an instant loan can be obtained despite the bank being refused. If prospective creditors know what makes banks tick and how they make their decisions, they often manage to get an instant loan despite bank rejection. In this article we give you the relevant information that can be helpful when it comes to an instant loan despite a bank refusal.

The different strategies of the banks

The different strategies of the banks

Similar to the fact that the entire market economy is different and multifaceted, the same applies to banks in the financial world. Currently, the image of banks is no longer seen only through banks that have branches and branches, as customers have known for years and days. Since the Internet came into existence and has become part of everyday life for consumers, there are more and more direct banks that are completely branchless. The direct banks sell their products exclusively via the Internet.

That is why they are able to work very efficiently and cost-effectively. Direct banks generally grant loans on better terms than branch banks because they largely pass on the cost advantage that they have due to the lack of branches and fewer staff directly to customers. In order to keep the credit default risk low from the outset, the banks take appropriate precautions and guidelines that must be taken into account when deciding on a loan. However, these guidelines are individual and vary from bank to bank, as is the interest at which the loans are granted. Anyone who receives an instant loan from a bank despite bank rejection can then assume that their loan is correspondingly expensive. Banks hedge themselves especially with customers with poor creditworthiness by demanding higher interest rates.

Instant loan despite bank rejection from the house bank

Instant loan despite bank rejection from the house bank

Consumers who have already made a number of credit inquiries online and only ever receive cancellations should give their house bank a try. If it is a branch bank, you can have a personal interview in connection with the loan application. In such conversations, it is often possible to remove inconsistencies from the world or at least explain them plausibly. In addition, there is an opportunity to ask for alternatives. Sometimes it is enough if the loan amount gets a little lower and the term is designed so that the rate can be paid from the freely disposable income. If the creditworthiness does not make a promise possible, a solvent guarantor can join the contract as additional security.

If the loan was applied for in a branch bank and rejected there, there is always the possibility for the person concerned to ask why a rejection takes place. A loan is often rejected for trivial matters. This can be a long-standing entry in the Credit Bureau that becomes a handicap or simply the fact that the desired loan amount and the resulting rate are simply too high. A loan applicant should therefore prepare their own household accounts in advance, which they use to determine how much of their freely disposable income is and what rate they can afford. Sometimes it is enough to plan a longer term because it also reduces the monthly charge. A personal conversation with the customer advisor can be helpful and useful.

Get instant credit elsewhere despite bank refusal

Get instant credit elsewhere despite bank refusal

In the future, loan seekers who find out the reasons for a loan refusal in person can prepare better and take the bank’s instructions into account when making the next inquiry.

Good to know: All banks enjoy freedom of contract. You cannot be forced to grant credit to someone who you see as too great a risk for yourself. Therefore, prospective borrowers whose loan application is rejected by many banks should look elsewhere for alternatives. If you do not get a loan from the bank due to its poor credit rating, you should try to borrow money from friends or relatives or take out a loan on the life insurance that may be available if there is an urgent need for money. The creditworthiness doesn’t matter.

Where to find an instant loan for retirees

Pensioners are actually not among the banks’ favorite clientele. Bring money and put it there, then the door will be held open. On the other hand, if they want to borrow money, then many banks put themselves at risk. Age or the rather narrow pension are often cited as reasons for rejection. Many retirees have a very high pension and enjoy excellent health even in old age.

Since retirees still have wishes that can sometimes only be fulfilled with an instant loan for retirees and pensioners, some banks have recognized the trend and offer, among other things, loans that are especially tailored to retirees. The loans are tailor-made and take into account not only the age of the clientele, but also the amount of the pension.

The benefit of an instant loan for retirees

The benefit of an instant loan for retirees

Banks should actually be happy when pensioners ask for a loan. They are considered extremely reliable when it comes to repaying liabilities. Before a pensioner cannot pay, he prefers to ask within the family if the missing money can help him out there.

In addition, pensioners are considered to be very economical. You have provided for old age with various insurance and investment options that can be used as security for an immediate loan for pensioners. This is definitely an advantage for banks if you also offer a loan to pensioners.

The difference between an instant loan for retirees and a classic installment loan

The difference between an instant loan for retirees and a classic installment loan

An instant loan for pensioners is not comparable to a classic installment loan. So there will be no funding that will run over a long period of time. The bank will base the term on the age of the borrower. This means that large amounts of credit are canceled, which require a long repayment phase. As a rule, loans of up to EUR 5,000 are possible without any problems. If you can also name a younger guarantor for the bank, the loan amount and the term can increase.

Where to get an instant loan for retirees

Where to get an instant loan for retirees

Such a loan can be taken out online as well as at a local bank. As a pensioner, you may not be as well versed in the use of the Internet and will prefer a personal consultation. This decision can sometimes have a negative impact on the interest rate, since you can usually find a lower interest rate on the Internet. But that may be secondary in this case. It is important that you feel comfortable and in good hands with the credit decision and advice. A few dollars more in interest is then not so important.