Which installment loan offers can be redeemed at any time without any early repayment fee?

 

Installment loan special repayment: how and where to do it consumer friendly?

Installment loans are the ideal alternative if a deficit in personal financial planning unexpectedly arises or the honeymoon should not be postponed. Unless this can be covered from your own funds, monthly installment payments are optimal. An installment loan is characterized by the fixed interest rate for the entire term and the predictable monthly rate.

Online installment loans can usually be applied for easily and without processing fees. Internet banks pass on their advantage of low administrative and advisory costs to their customers in the form of lower interest rates and fees. Installment loan offers can be compared online according to different aspects (► compare installment loans).

The decisive criteria are the amount of interest and whether it is tied to a specific credit rating or is open to all customers. Interest rates independent of creditworthiness for all creditworthy borrowers are offered, for example, by ABK bank, ING diba, DKB, netbank, okay anker bank, santander bank and SKG bank.

Differences already with the possible credit sums

Installment loans can generally be applied for amounts between 2.500 and 50.Apply for 000 euros with terms between 12 and 84 months. Some internet lenders provide higher sums for consumers. More money can be borrowed from credit plus bank, which offers up to 70.000 euro loans (► creditplus sofortkredit).

ABK bank also has special features in terms of maturity and loan amount. The terms can be between 12 and 144 months, the amount of the loan may be up to 20 times the family net income, but not more than 100.000 euros (► ABK bank flexoplus kredit).

Santander consumer bank grants installment loans from 1.000 to 60.000 euros with 12 to 96 months duration (► santander bestcredit). Targobank, in turn, offers online installment loans for 12 to 96 months in the amount between 1.500 and 65.000 euros to. In contrast, some institutions have lower credit limits. Borrowers of the barclaycard installment loan may only borrow for up to 35.000 euros to apply for an installment loan (► credit barclaycard). The bank11 also has different conditions for loan amount and term. The loan term can be as little as 6 months and borrowed up to 40.000 euros (► bank11 loan).

The ING diba installment loan starts at 5.000 euros (► ING diba privatkredit), as can the DSL bank privatkredit, which can also be repaid in up to 120 months (► DSL ratenkredit). The OYAK ANKER bank offers credit periods from 12 to 96 months.

About online credit.De, a brand of SWK bank, applicants receive a loan of between 5.000 and 50.000 euros for 24 to 84 months (► SWK online kredit). Terms of two to seven years are also common with bank of scotland. It should be emphasized that bank of scotland offers credit amounts in increments of one hundred between 3.000 and 50.000 euros can be graduated, while full five-hundreds or thousands sums are the rule with most other credit providers (► royal bank of scotland kredit).

Chaff from the wheat: free unscheduled repayments as desired possible?

Whether an installment loan is worthwhile is also determined by how flexibly it can be repaid, whether unscheduled repayments are possible and under what conditions. If his financial circumstances change for the better due to a salary increase, profits or inheritance, the borrower benefits directly from the option of unscheduled repayments.

With unscheduled repayments, borrowers can either shorten the term of the installment loan or reduce the monthly installment and thus save interest expense or gain regular free liquidity. Special payments are additional repayments to the bank, which are not in the repayment schedule. It is also possible to restructure the installment loan into a more advantageous loan by redeeming it early (see z.B. ► loan redemption santander).

Regular installments are collected or transferred monthly by direct debit on set dates. If there is a desire to make unscheduled repayments, it is advisable to contact the bank beforehand. This allows the financial institution to create a new repayment plan or determine the redemption balance. Most providers provide these documents at least once a year free of charge. With some institutes are indicated on-line immediately the appropriate receiver accounts with intended purpose, on which the additional payment must take place. How high the unscheduled repayments are, the borrower himself determines. The faster the repayment, the more the borrower can save. Both partial amounts and the entire remaining debt can be repaid.

The market for online installment loans is very competitive due to low interest rates. Online providers who forego interest rate compensation have a clear competitive advantage. Each offer has strengths and weaknesses, the prospective customer must pick the one that suits him best. Our comparison of installment loan offers with unscheduled repayment options yielded the following result: the credit institutions can be divided into three groups.

1. Providers with unlimited free unscheduled repayment options

The following providers allow unscheduled repayments at any time and without limit, without charging the prepayment penalty permitted by law:

  • ABK bank flexoplus loan
  • Bank of scotland installment loan
  • Consorsbank credit (credit is granted via the partner bank SWK)
  • DKB personal loan
  • ING diba installment loan
  • SKG bank installment loan

With these installment loans, a free unscheduled repayment of the total amount or a partial amount of the loan is possible at any time. This applies exclusively to installment loans taken out from 11.06.Were concluded in 2010. Since then, the new consumer credit directive has been in effect, which allows borrowers to make unscheduled repayments at any time, but ensures banks receive an early repayment fee.

Amount of prepayment penalty for special redemption

The amount of a prepayment penalty / prepayment fees in the event of early redemption of installment loans is specifically regulated to protect consumers. It is a maximum of 1 percent of the outstanding balance for loans with a remaining term of more than one year, and a maximum of 0.5 percent of the remaining loan balance for loans with less than one year left on the contract. The prepayment penalty is used to compensate banks for lost interest expense. For older installment loans, the previous law applies, which allowed free repayment of the loan after a notice period of 3 months. If the notice period was not observed, the banks could set the early repayment fee at will.

2. Offers with free unscheduled repayments under conditions

The following banks have special rules for partial or early repayment of the installment loan:

  • Barclaycard installment loan
  • Creditplus bank sofortkredit
  • DSL bank personal loan
  • Norisbank top loan
  • Postbank personal loan direct
  • Targobank online advantage loan

At barclaycard bank you can always repay your installment loan free of charge, as long as it is a partial repayment of the installment loan. The statutory early repayment fee applies to complete redemptions of the loan. If customers observe a 3-month notice period, barclays bank waives the compensation.

The creditplus bank advertises with free special payments at any time, but in the credit conditions it says that the legal compensation is due. It can be assumed that the free repayment is either a special offer for a limited period or a matter of negotiation. In the past, creditplus bank allowed free special repayments only once a month if at least four loan installments were still outstanding. For repayments exceeding this amount, the statutory compensation was due.

With DSL bank privatkredit, a brand of postbank AG, no-fee unscheduled repayments are possible only once a year and only up to 50 percent of the outstanding loan amount. Otherwise, the early repayment penalty will be charged (► https://kredit.Dslbank.En/frontend/product-information.Do). The same rule applies to the norisbank top loan, but only for installment loans taken out after september 2012. For loans that were previously extended under the provisions of the new consumer credit directive, an early repayment penalty is generally required for unscheduled repayments.

Postbank privatkredit direkt: questions and answers on unscheduled repayment – the different banks have partly in detail very different regulations, when and how often unscheduled repayment is allowed, and whether and in what amount fees are associated with it. It therefore makes sense to read credit agreements, general credit conditions and faqs very carefully

The one-time annual free unscheduled repayment of up to 50 percent of the remaining debt also applies to the postbank privatkredit direkt, it shortens the term of the loan. If up to 20 percent of the original loan amount is repaid early, a reduction in the installment can be agreed upon.

With the targobank online advantage loan, unscheduled repayments of up to 80 percent of the remaining debt are possible free of charge.

3. Offers with early repayment fees for unscheduled repayments at any time

These are the banks that constantly allow unscheduled repayments of their installment loans, but insist on the statutory prepayment penalty:

  • Bank11direkt installment loan
  • Netbank installment loan
  • OYAK ANKER mywishcredit
  • Online credit.De online credit
  • Santander consumer bank bestcredit
  • SWK bank installment loan

Netbank is particularly expensive in the case of contractual changes due to unscheduled repayments. In addition to the statutory early repayment fee, it incurs additional costs of 50 euros for contract amendments and term reductions, as well as an administrative fee of 2 percent of the repayment amount, but at least 50 euros. OYAK ANKER bank also charges additional fees in the form of a processing fee of 50 euros for unscheduled repayments.

Conclusion: special repayment of installment loans

An installment loan not only helps to fulfill wishes and bridge financial bottlenecks, but can also be individually adapted to your own budget during repayment. Early loan repayments have the advantage that the consumer saves interest expense and can take out a new loan faster. The transferred unscheduled repayment amounts are immediately offset against the interest and loan balances, so that there is a saving without delay. A fully repaid loan has a beneficial effect on the scoring in the creditworthiness assessment. Since there are large differences between the installment loan providers with regard to the unscheduled repayment options, it is worthwhile for prospective students to compare their offers on the internet in order to find the most suitable and flexible installment loan.