Almost every borrower can summarize their expectations of a good loan in one sentence: Of course, they want the fastest possible payment, flexible terms, different repayment models and a special right of termination that actually costs nothing, but ultimately it’s all about one thing: to have a loan low interest rates.
A loan with low interest rates: the trick is in the details
The interest in a loan with low interest rates can be justified by keeping the additional costs that the loan threatens to cause as low as possible. The calculation is simple: the lower the interest, the less money you have to pay back to the bank. But this calculation can be incorrect for two reasons.
For one, a loan with low interest rates is often a loan with high processing fees. This means opening a loan or a possible special repayment costs the borrower a few percent more than is usually the case.
On the other hand, the loan with low interest rates should be a loan with a borrowing rate that is tied up over the entire term and does not skyrocket if the rate is suspended. Some banks have clauses that stipulate that if only one installment is late, lending rates multiply.
Due to the usury law, German banks are not allowed to include such clauses in the contracts. Foreign internet banks, which often lure with very cheap interest rates, but they do. The interest charge should be stable for the entire term or should be within a small fluctuation range that was previously shown transparently.
How do you find a loan with low interest rates?
Anyone looking for a suitable loan should therefore carry out a comprehensive comparison of the different offers. The internet provides some help. The credit calculators stand out particularly. A loan calculator on the side of a bank shows you the exact charge under certain conditions (term, loan amount, etc.), while a loan calculator from independent platforms compares a large number of offers and juxtaposes them in detail, which enables you to quickly get the loan with the lowest interest charge to find. Afterwards, however, you should definitely check the relevant page of the bank again to see whether the interest meets the requirements set out.