A cheap loan from the bank, this form of credit is the most common in Germany. Loans could come from other providers than just from the banks. Insurance companies and private investors also make it possible to get a loan. The bank loan is nevertheless the most popular form of a loan. Why this is so and what offers there are, this will deal with this post.
A cheap loan from the bank
As a cheap loan from the bank, many offerings turn out to be financing issues. At least in Germany, banks have the credit market almost entirely in their own hands. Compared to the total volume, the other providers in the credit market are relatively small. Not in all countries it is like that. A look to Asia shows a whole range of different credit providers in addition to the banking world. The most common alternative to bank credit is often the loan from the pawnbroker.
The interest to be paid makes Europeans shudder. 20% and more can be the interest rates. In addition, there are processing fees and often the interest will be already deducted in the payout immediately. In China, the government is currently struggling with the problem that entire industrial companies can no longer work. Loans with an annual interest rate of 40% were used to build up the facilities. The companies can no longer serve them now.
In Europe, these problems are not known. A cheap loan is possible for large parts of the population without any problems. In addition to the house banks, online banks have been offering loans over the Internet for many years. Online offers have the advantage of easy comparability. The offers are clearly listed by search engines. An extensive set of rules protects loans against overdelivery of borrowers.
The banks themselves are also particularly protected. Information systems like the credit bureau are supposed to protect them against credit losses. A credit rejection is a painful experience for the individual. But only by clear credit rules a favorable credit from the bank for the majority at all possible. The rules prevent conditions, as in the Philippines with 20% interest rates. – Or in China with up to 40% interest from the gray market. A cheap loan from a bank secures jobs and ensures security.
Loans from foreign banks for German borrowers.
Swiss loans are also allowed on the German market. Through credit intermediaries, they are offered in the media. A Swiss loan, as a cheap loan from a bank abroad, is slightly more expensive from the interest rate. The additional costs are a comparatively moderate surcharge for easier conditions of contracting. The credit bureau can be excluded. The ability to repay is, however, at least as clearly examined and thus ensured in other ways. The credit default risk remains predictable and guarantees a favorable loan from the bank from abroad.