Called interest rates and current interest rate phase for installment loans

Loans are usually needed when it comes to a quick purchase. But often it is a problem to get this too. Banks and intermediaries usually have turnaround times, and few companies provide the loan in a very short time. It gets harder, if you want to have the express loan even without a proof of income. But there are also good and practicable solutions for this. You can find some good options right here.

The express loan without proof of income

  • Life insurance loan with no proof of income
  • Bank balance and credit
  • Building loans
  • Venture capital
  • What to do in case of credit problems?
  • Called interest rates and current interest rate phase for installment loans

The express loan without proof of income

Without a proof of income many smaller loans come from. If you need an amount of up to 3,000 euros, you will receive a loan from many installment credit banks without the presentation of the current settlements. Here alone the private credit counts and already it can start with the loan application. Most of these loans are not offered online. The bank would like to see the new customers beforehand.

However, installment credit banks offer this only as an increase in an already existing connection. But even this can be a viable solution to receive the necessary cash injection accordingly. However, both forms of topping up are associated with high or elevated interest rates as banks assess the lack of evidence of income in favor of the risk margin and thus demand significantly higher interest rates against the market.

    • Retrieve framework loans

Many banks already grant a credit line when opening an account. This loan is already checked in advance by the bank with proof of income. In the payment of the frame thereby eliminates another test. So if you can not present proof at this time, the credit limit will be paid in whole or in part. The framework loans are available in an amount of € 1,000 up to a maximum of € 25,000. Practically here is the absolute flexibility. The credit line can be accessed freely. The repayment is, depending on the contract, with monthly fixed or monthly freely selectable installments.

The interest rate of such a credit line is variable. This means that the installment loan bank can adjust the demanded interest rate at any time during the term upwards as well as downwards. It will thus react to the respective interest level as well as to increased or fallen risks. However, the interest rate is not creditworthy but always the same for all installment credit customers. For the credit line, an account statement is created at fixed intervals. This includes the accrued interest including the agreed repayment. As soon as a part of the credit line is paid back, a partial amount of it can be re-paid.

    • Subsidized loans from consumer financiers

A particularly favorable form are loans from banks that finance consumption. These are loan offers that are not used by the bank itself but in a shop. In these hypermarkets, a standardized loan offer is made available specifically for the purchase of a product from the market. The credit agreement is thus bound to a purchase. The Ratenkreditbank operating in the background then checks the loan request in many cases on presentation of a debit card and by presenting the identity card. Based on the entered data and a private credit the credit decision takes place by means of a mathematical-technical process. This is called scoring. If the score is positive, the loan is awarded. If the value is insufficient or negative, it will be rejected and a proof of income must be provided.

The loan amount is then paid by the installment bank directly to the retailer and you can take the product directly. The loan itself is subsidized in the interest rate by the retailer. This means that often the known zero percent offers occur here. Just these offers can be returned quickly and easily because there is no prepayment penalty. The offers with an interest rate must be properly terminated. The notice period is usually six months.

    • Express credit without proof of income by providing collateral

There are a large number of different collateral provided by the customers, so that an installment loan can be granted quickly even without the presentation of a proof of income. These assets include life insurance, building society and bank balances. The prerequisite is that the credit has not yet been assigned. Thus, the banks grant very low-interest loans with sometimes very long maturities.

In practice, the credit is pledged from the contract against the own house. This means that the loan agreement is concluded directly with the insurance company, the bank or the building society. The repayment is only different.

Life insurance loan with no proof of income

Life insurance loan with no proof of income

The pledge of a life insurance leads to a loan debt with the society, which is repaid by means of the repurchase value from the insurance. This means that the disbursed loan is not balanced by monthly installments but by the maturity of the insurance. As a result, there is no payload during the repayment period but only the interest has to be transferred. Even here there are companies that serve the interest from the growing repurchase values.

Bank balance and credit

Bank balance and credit

With an installment loan against bank balances, many banks also refrain from proof of income. However, it is not the case that the sum at the end must be repaid by the bank balance inevitably. Rather, it is the case here that in most cases repatriation takes place through a monthly installment. The backup amount remains on the contract and is then still available as a credit for a completely different use.

Building loans

Building loans

This loan is known as interim credit for balances. In this credit form, the existing credit is borrowed. The interest rate is a committed element until repayment of the loan. This is usually done by allocating the konto. The contract is thus paid by dissolution. In this agreement, however, it should be noted that any requested funding may be lost through this loan agreement.

Venture capital

A new and popular form of borrowing is the use of a private lender. These internet platforms bring together supply and demand. With the private lenders usually also no proof of income is demanded but the credit is turned off purely on the creditworthiness, the term and the intended use. The credit is ready for payment after the legitimacy. One can also speak of a real express loan here. The repayment itself is made in monthly installments as well as a conventional installment loan.

What to do in case of credit problems?

What to do in case of credit problems?

If there are problems with the creditworthiness of the debtor, some of the forms outlined above may fail. In particular, all credit procedures that include a scoring system lead to a negative credit rating and also a private credit entry to a rejection. So in the end, only the forms of credit against collateral and the framework credit come into question. Especially the forms against collateral such as credit, life insurance or bank deposits do not check the credit rating because there is no risk for the bank. However, the loans are still not issued for risk-free interest. This would be between zero and one today.

Called interest rates and current interest rate phase for installment loans

The interest rates on the installment loans are, despite the current zero interest rate policy of the ECB is not zero but are sometimes far above. Normal interest rates between five and 18 percent are expected. Of course, these differ by the respective providers. In general, the better the collateral, the better the interest rate. The same assumption can also be observed on the basis of creditworthiness. Good credit ratings usually receive the best interest rates. With the small package offers such as the 3,000 euro offer a standard interest is usually called by seven percent.

The same applies to the credit lines with a variable interest agreement. In general, a fixed interest rate should be applied at the moment. These agreements ensure that the current interest rate level can be taken into the future as long as possible. Many banks are prepared to pay up to 8 or even 10 years for the loan offers. This ensures a permanently favorable credit.