Although interest rates have fallen steadily in recent years, the burden of interest on a loan still plays an important role. In times when consumer credits are being advertised more and more frequently with the 0 percent interest rate, it is important to ensure that the conditions do not become a problem during the repayment phase, especially for long-term loans. Low-interest loans have long been a normality on the competitive financial market.
The Internet is also playing its part in this, since above all direct banks and providers from outside the industry are pushing for new forms of financing. In the search but it is important to respect serious offers and other things.
Low-interest loans – are they serious?
Anyone who has encountered a particularly favorable loan in earlier times has usually looked a little skeptical about where the hook should be. And indeed, the burden of interest rates until the turn of the millennium was one reason why the industry has hardly developed. Loans were still more of a tool for well-heeled citizens who had collateral.
Only with the big bubble around the banks and the real estate has changed the situation in the market. However, this was not because of a rethinking of the banks, but of a new monetary policy that came from the central banks.
In general, banks are guided both by their investment offerings and loans by the conditions of the central banks. In most cases they do not work with their own money, but borrow the money themselves for the loans themselves from the central banks and pass them on to the consumers.
That’s why it has been so difficult for companies to get a loan for some time – after the crisis, banks wanted to have collateral that would inhibit lending to small and medium-sized businesses. With the change to the 0-percent interest rate policy of the central bank, however, the loans have also become much cheaper for many consumers.
Meanwhile, interest rates are at historically low levels, allowing consumers and banks alike to benefit equally from favorable conditions. However, this does not automatically mean that any provider that offers particularly favorable interest rates for its loans is also of a serious nature.
It is important to examine the offers carefully and to choose the service providers who provide the right mix of different conditions. Because with a good offer for a loan, it is no longer all about interest rates today.
Runtime, sum, advice and, finally, fixed interest rates are topics that should always be considered when looking for a good loan.
5 tips on low-interest loans
1. Always pay attention to serious offers
The internet in particular has allowed a wide range of providers to make their services available and, of course, advertise their services. In a quick search on Google for low-interest loans, not all results are equally reputable. At first glance, many providers may offer cheap loans, which can become significantly more expensive over time or under certain conditions – for example, when one installment fails.
It always comes with a loan on the complete package, which is provided by the provider or by the bank. Paying attention only to interest rates could lead to problems in later years – especially long-term loans.
2. Pay attention to fixed interest on long-term loans
A popular trick with many providers is to advertise with favorable interest rates but not at all to offer them over the entire term of a loan. The so-called fixed interest rate is one of the factors in the search for a loan that is respected by too few people.
Especially for long-term loans, such as loans for real estate, the bonds are set only for a few years. After three or four years, the bank could reassess the interest rate market situation and pass on increased interest rates to consumers.
In this case, the total amount of his loan would suddenly increase, which of course could lead to problems in the eradication. Therefore, always pay attention to the interest rate.
3. Do not be lured by cheap lock offers
Cheap loans are a popular way to turn prospects into customers very quickly. It is advertised with a variety of forms of cheap loans that are sometimes used immediately. However, there are a few factors that the bank does not write down at first glance – such as the obligation to open an account with them or to take advantage of later offers. In general, a loan should never be taken without a reason.
You may be able to afford a good deal with a planned purchase – but there should always be the reason for a loan and not the other way around.
4. Compare the offers on the Internet and check
At first glance, a loan with particularly favorable interest rates may seem very good and would be the right choice to survive a financial shortage or make a necessary purchase. As so often in advertising, but here too caution applies to offers that seem too good to be possible. Instead of just getting involved in the offer, it should be checked on the Internet.
Especially the comparison, which can be found on many websites, is a help here. This will allow consumers to check exactly how the loan can compete with other providers and whether it really is a good deal.
5. Use low-interest loans from retailers
Instead of using the offer of a bank with every purchase, it can be worthwhile to buy instead to use the financing via installments at the dealers. Many companies are now offering their own loan packages in cooperation with banks, for example when they want to buy a new TV.
In direct comparison, these loans also offer good benefits and conditions and are a helpful way to finance expensive purchases over a fixed period of time.