consumer loan

A consumer loan is primarily an installment loan. Banks grant various loans to private customers, business customers and companies. The consumer loan is clearly assigned to private customers.

 

Definition of consumer loan

consumer loan

The consumer loan is an installment loan that the borrower uses to buy consumption. This means the purchase of a new TV, new furniture, a used car or a PC. Many consumers also take out a consumer loan for a planned vacation. Another term for the consumer loan is also the consumer loan, acquisition loan or consumer loan. The loan form is always an installment loan.

The borrower receives the desired loan amount, after which he repays the loan with interest and constant monthly installments. An explanation of the importance of consumer loans is also derived from the amount of the loan. Smaller loan amounts are usually given to improve the household budget, so to speak, so that smaller purchases can be made around the house.

 

The conditions for the consumer loan

consumer loan

In order for the loan seeker to get a cheap consumer loan, he has to meet some conditions.
In addition to the age of majority, he must have a sufficient and regulated income. It should come from a job. A permanent job is one of the conditions, there should be at least six months. His credit bureau must have no negative characteristics.

If the loan seeker meets these requirements, he can get a cheap consumer loan. Since this form of lending is very common, it is advisable to carry out a free online loan comparison before applying.

 

The advantages

consumer loans

A consumer loan offers the loan seeker some advantages and considerable flexibility. The advantages that a consumer loan offers are a low interest rate, a flexible loan amount, and a term that is tailored to personal needs.

In addition, the consumer loan is repaid in constant monthly installments, the interest rate remains fixed throughout the term. If necessary, a cheap residual debt insurance can be taken out, the application can be made conveniently online.

 

An example of a consumer loan

An example of a consumer loan

If 5,000 dollars are considered and all requirements are met, the bank will make an offer. The bank names a nominal interest rate and an effective interest rate. The effective interest rate is important because it contains all costs and ultimately represents the current loan. If an interest rate of 7% is offered and a term of 4 years, the loan seeker pays around 120 dollars a month. The total loan amount is 5,750 dollars.

 

The most important thing as a conclusion:

credit loan

  • Some advantages (flexibility, quick application)
  • considerable flexibility
  • low interest rate
  • flexible loan amount
  • adjusted term.

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