Customers with lower incomes or who wish to pay off their loan in smaller installments may find the long-term form very beneficial. But even those who have bad Private credit entries and low credit ratings might find interest in this form.
Credit Long Term – When and Why to Choose Such Form?
When searching for the optimal solution, the person looking for a loan must above all meet the customer’s creditworthiness and their wishes. Not so with long-term loans, where the credit rating does not affect the terms.
Different financing options for completing private projects are used to fill in a shortage of funds and create more opportunities, no matter what you decide to use the money. Particularly in demand is the credit long term. This form of financing refers to loan sums between 2,000 and 50,000 euros, which are freely allocable and payable in several years.
For most providers, the payment of the loan is up to 10 years with low interest rates and requested rates. Depending on the amount of the loan amount you can structure yourself as a customer so the optimal repayment and easily pursue his project.
Long Term Loan – What sets it apart from other forms?
In this form of credit, the terms of the individual loan are not dependent on the creditworthiness of the client. In addition, you can freely divide the rates, at least as far as the height of these. Good interest raves for the choice of the longer payment and with most offerers there is not even a fee for the processing. The interest terms are calculated according to the duration of the loan, unlike other forms, which depend on the creditworthiness.
The credit rating is based on the annual interest rate, whereby you can imagine a flexible long-term interest rate depending on the capital use in a long-term loan.
The main focus – the requirements
In order to get a loan for a long term, certain conditions have to be fulfilled, or in some respects the conditions in this respect differ as follows:
A loan is given to borrowers who are at least 18 years old. For older people, it’s hard to get a long-term loan, even if the income is so high. Here are other forms certainly better and easier to get.
- Permanent residence for a loan
Anyone who wants a long-term loan in Germany must have a permanent residence in Germany in order to qualify as a borrower.
- Whether worker or pensioner – all need an income
Regardless of whether you are a self-employed person, an employee or a retiree as a borrower, income is the key to taking out a loan. It should be noted that the self-employed have a harder time than workers or retirees, because the industry is never expected to work the same. The provider is based on the monthly income, but this may also be variable for the best trades. Retirees and workers, on the other hand, have a constant here that makes it easier to get a long-term loan.
- Safety in the rates
For a long-term loan, it is particularly important to be able to provide collateral for repayment. These can have different shapes. For example, in the form of substantiation or property. Also a life insurance or a residual debt insurance can be taken as security for such a credit form. Less problems in this respect prepare long-term loans that are planned for a property Here, the object itself is to be regarded as collateral over the entire duration of the loan.
Special form online loan
In keeping with the ever-growing online opportunities in all areas, you can also simply request a loan online. But you can also only inform yourself, calculate a possible loan and much more. The online loan is a special form of application that can be done quickly and easily from home or in the office. For a long-term loan, this only takes a few steps.
If you are a borrower looking for the right loan, it is certainly worthwhile to first collect the most important information on the internet. Here you can find what you are looking for relatively quickly. Applying for a loan long term on the internet is also easy. If you are of legal age, living in this country, with a fixed income, the credit is actually nothing in the way. The process of the application runs as followed.
First, you have to decide how many installments you want, or how high the monthly installment may be. Once the loan amount has been determined, the loan can be applied for by completing an online form and attaching the latest proof of income to it, as well as the proof of employment record.
Construction and real estate loans
Subforms of the long-term loan form are construction loans and loan sums for real estate. Here, the property is itself as collateral. Long-term loans of this type are also scheduled as installments, whereby the rate is reduced with increasing maturity. Interest rates are determined by duration.
Pitfalls – Cancellation and cancellation possible?
In the case of a long-term loan, the borrower actually has a right of revocation in the case of loan agreements. This usually refers to an online contract only on the online shopping, but is issued by law under the Civil Code according to § 495 BGB also a right of withdrawal for contracts concluded. This right allows the borrower to terminate the contract if it is a consumer credit agreement.
However, this project calls into question the following conditions:
You have to have a contract with a company, such as a bank or another loan company. In addition, long-term loans should be used for a private purpose, not as a business asset. For example, if it is the loan for the purchase of a private property, a revocation is possible.
When canceling a loan, the remaining debt must be taken into account. This is the amount to be paid after the loan has been paid to the lender. In recent contracts, this sum can be paid in one sentence. For this, the borrower must have a larger sum of money, which can cover the remaining debt and thus prevent special payments.
For most loans, termination or early termination is usually associated with prepayment penalties
Benefits – Regardless of creditworthiness and low interest rates
With a construction loan, for example, one can count on an interest rate of just about 5.5% for most providers. This interest rate applies to long-term loans up to 10 years. Depending on the duration, this sentence varies.
Another clear advantage of form credit long term is the fact that one’s own credit rating is not a requirement. All you have to do is look for a suitable security for the repayment of the installments, and you have better cards. With bad Private credit entry and unfavorable creditworthiness one can offer one’s own security as security, or one proves a high income. Also beneficial are solvent guarantors who stand with their income for the repayment of the loan.
These persons sign with the provider an enforceable guarantee contract, which is then taken as collateral. If the monthly installments fail, the lender then turns to the guarantor.
Current numbers and interest rates
On the Internet, lenders can easily compare. But to collect all the important information and requirements are also car loan calculator, which can be found on various pages on the Internet. Here you can use the information about income and collateral to calculate the amount, the current interest rates and numbers, and with just a few clicks.
You can choose the loan rate and adjust the individual financing according to your own ideas. If you are satisfied with the result, you can also approach the lender yourself with this calculation.
|Buy car||World Travel||Further education|
– A new car or a high-quality used car can be bought with a long-term loan
– Purchase of a van, motorhome..
– The long-awaited journey around the world can be paid for by credit
– hotels, other accommodations, transfers, cruises and meals
– The part-time Master after the Bachelor can be paid with a long-term loan
– IHK degree, master, MBA, technician…
Thanks to their long duration, the monthly installments are quite low. As a result, a high-priced new car can be purchased. The most expensive financing at the dealership can be avoided by means of independent installment credit.
You do not have to save years on the trip around the world, but you can quickly realize it. Thanks to long-term credit, a relatively large sum can be raised at relatively low monthly costs.
As a rule, there is no entitlement to BAföG after completing a first vocational qualification. With a loan with a long term, the further qualification can still be financed. So you can, for example, a full-time study afford, without incidentally to work for the training costs.
Loan amount: 40,000 EUR
Effective interest rate: 1.95%
Running time: 72 months
Monthly rate: 589.14 EUR
Total interest: 2,418.07 EUR
Loan amount: 20,000 EUR
Effective interest rate: 1.95%
Duration: 48 months
Monthly rate: 433.47 EUR
Total interest: 806.38 EUR
Loan amount: 25,000 EUR
Effective interest rate: 1.95%
Duration: 60 months
Monthly rate: 437.65 EUR
Total interest: 1.258,84 EUR