Processing of small loan
Small loans are usually relatively expensive. Because even with a small loan amount, the bank has to check the creditworthiness of the customer and ensure a smooth transaction. At the bank, interest rates of 9.99% are possible for the majority of customers, with a maturity of 48 months. With a good credit rating, the bank promises but an annual percentage rate from 4.29%. However, reality shows that such low interest rates are reserved for very few customers. In the end, exactly 4829.13 euros will be repaid. The monthly burden remains but thanks to the relatively high duration with 100.61 euros in the frame.
With onlinekredit.de a 4000 euro credit is even cheaper. Although the advertised interest margin of 4.35 – 10.90% suggests that a loan is more expensive. For the mandatory figure for the so-called 2/3, the loan is only 6.5%. This value expresses that 2/3 of the customers receive the loan on these terms. The monthly rate drops to 94.52 euros. After 48 months, the credit has caused costs of 536.82 euros. The cheap offer of online credit is apparently related to the comparatively low processing fees of only 3%. Other banks demand such a lump sum quite a lump sum, which exceeds this proportion significantly.
Hardly less interesting is the offer from bank. An effective interest rate of 7.95% is granted to most customers and is quite acceptable with a 4000 euro loan. In 48 monthly installments of € 97.04 each, a total of € 4657.98 will be repaid. The advertising indicates a somewhat chillingly high interest rate of up to 11.95%.
High fixed costs make credit opportunities dwindle
The comparison of these three offers shows that advertising is only a rough measure of the actual cost of credit. In fact, annual interest rates in the range of 4% are granted, if at all, only extremely rarely. For this reason, a detailed comparison of a 4,000 euro loan makes so much sense. This shows what interest rates are given in reality by the banks. But all credit houses should be entitled to the debtor. Minors are excluded from such small loans as well as the unemployed. A regular, steady income must be proven. The bank also asks about the rental costs. Anyone who financially overspend on a monthly basis is seen by many as a risk candidate. It also does not help if there was no difficulty in repaying existing loans.
The credit bureau information should also provide no surprises for the bank. Already small payment failures let the rating fall at the credit bureau. For the bank, the cause is absolutely irrelevant. Anyone who gets in the credit check difficulties should call a second borrower for the 4000 euro credit. The bank then has the opportunity to access the income of both persons. Even those who would get their credit alone are well advised to take this step. Because the cost of a € 4,000 loan should fall significantly.