Can afford things that you would not otherwise treat yourself to. No matter whether everyday things, things that are essential for life, such as a new heater or a new washing machine. But the long-awaited vacation trip with the family or a vehicle of their own are also on the wish list of many people
Since these purchases are often associated with very high costs, it is difficult to raise such large amounts once. As an alternative, protracted saving is not really realistic. In order to obtain larger monetary funds in the short term, it therefore makes sense to take out an installment loan without residual debt insurance.
The following article shows the general conditions, prerequisites and conditions for a loan of this type.
Installment loan without residual debt insurance is a very practical thing
The conditions for a loan without residual debt insurance can be compared to classic loans. Certain collateral should already exist when it is granted. These include, for example, real estate or share ownership. If you are already in the Germany-wide private credit checker database, it is very difficult to grant a loan. Lenders also check the borrower’s regular monthly expenses. This includes, for example, insurance or food expenses – this is how banks ensure that the monthly installments can be repaid on time.
The special thing about an installment loan without residual debt insurance is that there are no additional contributions for this type of insurance. It applies to the lender as additional credit security and secures the repayment of the payments by the insurer if the lender dies, becomes unable to work or becomes ill. The surviving dependents are also adequately covered by residual debt insurance. The main conditions for an installment loan without residual debt insurance are discussed below.
Loan amount, term and effective interest – that’s what matters
The amount of the loan can be freely determined for a loan of this type. The limits are between 500 and 100,000 USD. The loan term, i.e. the duration in which a monthly installment is paid, can be between 6 and 60 months. The longer the term, the lower the rates. Another factor is the interest rate offered by the bank. It is worth comparing well here, because the rates are often between 3 and 10 percent.
For the borrower, the monthly installments should always be affordable. You always have to consider a small buffer. Eventually, unpredictable events such as car repairs can occur. If you follow this advice, an installment loan without residual debt insurance is a very good thing.