A consumer credit is also referred to as consumer credit or private credit. According to the disposition loan, it is the most frequently used form of credit in Germany. Under Simple: Private Loan - Youtube, you can see a video that explains the main aspects of such a loan.
Consumer credit: Frequent uses
As the name implies, a consumer loan usually serves the fulfillment of a short-term and quite expensive wish. Thus, dream breaks are often financed through such a loan. The same applies to the purchase of a car or a sofa set. In addition, many people choose such a loan to offset the expensive dispo credit on the current account. In times of low interest rates, private loans are quite favorable, while the low interest rate has not, or has had a negligible effect on, disposable interest rates.
The consumer loan is a installment loan, which can not be settled easily at one stroke. The issuing bank ultimately deserves a fairly long term so that an immediate full removal of the loan can only be effected in the normal case against a certain payment.
Whoever takes out a consumer loan should be aware that he or she is now indebted for a period of three to five years. Thus, such a loan can not be accepted an unlimited number of times, so the conclusion should be considered carefully.
The consumer credit: How it is concluded
A consumer loan is a simple and unbureaucratic loan: often it serves the fulfillment of a spontaneous wish like a last minute cruise. Most banks are prepared for this, so that the loan can usually be paid up to EUR 5.000, on the same day, or delivered directly to the bank switch.
The granting of the loan is quite simple: the customer presents a valid employment contract and salary statements for the last six months. In the case of self-employed persons, payment receipts for the last six months should be eligible. If a regular payment can be determined, the credit is instructed or immediately paid out. The height is usually three months, which can often be rounded up a little. About EUR 5.000, - are the maximum that can be paid out to the terms of a consumer loan.
More and more people are now employed in fixed-term employment, which is basically an obstacle to lending: A consumer loan has a multi-year repayment period which can hardly guarantee a person whose employment relationship is limited to twelve months. Due to the low interest rates and also the good employment situation in Germany, the banks have become quite generous here. It is assumed that someone with a temporary employment contract will find a different job, so the loan application is mostly approved.
A consumer loan is usually linked to information at the Schufa: Whoever has a negative entry here is normally out of the question for lending. The banks have, however, reacted to this: Many banks now maintain online banks as subsidiaries, which are based abroad. The strict German rules do not apply here. The customer can then request the credit online and receive it online from the same bank, which would have denied him or her the consumer credit at the counter. An online consumer credit is slightly more expensive than a consumer credit at the counter, but otherwise has the same conditions. This rather absurd construction shows that it is time to think about online national banking in connection with schufa and lending in times of online banking.