If you need a installment loan, it is advisable to compare the different loan offers. The easiest way to make such a comparison on a corresponding online portal. In this way, you can also compare the offers of direct banks, which often offer particularly cheap loans. The most important feature of the installment loan is the effective interest rate. See http://www.veganstvo.net/online-payday-loan-direct-lenders-only-online-direct-lenders-visit-our-website/ for the scoop
What costs are included in an installment loan in the effective interest rate?
In an installment loan, the effective interest rate is affected by various fees. First, the effective interest rate contains the nominal interest rate. This is the actual interest rate charged by the bank for taking out the loan. Furthermore, the processing fees are already included in the annual percentage rate. In contrast, an optional residual debt insurance is usually not part of the effective annual interest. If you would like to take out such insurance, please pay attention to the specific details of the bank concerned.
The level of the interest rate may depend on various factors depending on the bank. First, it depends mostly on the amount of the loan amount. The higher this is, the more interest will be due on the loan. The length of the chosen term can also have an influence on the interest rate. Some banks also make their interest rate dependent on the creditworthiness of the borrower.
Banks must specify the effective interest rate for the installment loan
According to the current price regulation, banks are obliged to always quote the annual percentage rate of charge for their loan offers. This is done to protect consumers, which makes it easier to compare different offers. Furthermore, the banks must always show a sample invoice for the loan offered.
What should be compared to the installment loan for the effective interest rate?
The annual percentage rate is an important criterion if you want to install a installment loan. In addition, there are other conditions to compare. For example, special repayments should be possible at any time free of charge. Some banks also offer the option of one or more installments once a year. Again, this can be a useful option. Therefore, compare what costs are calculated when the rate is suspended.