In the following, we will explain which credit periods and loan amounts banks offer as standard rates and where the differences lie. Regardless of whether online bank, branch bank or loan platforms, the default values are usually very similar.
Starting point: If you want to take out a loan, you need to know exactly when it comes to making a meaningful comparison about the repayment term and the loan amount.
Difficulties: Even without being a financial expert, the ideal conditions must be found in order to facilitate a favorable loan.
Solution: Find out with us how credit term and loan amount affect the terms and what to pay attention to.
The repayment term
The repayment term is the period during which the borrower must have paid the borrowed loan plus the agreed interest to the lender. The loan term is always specified in the search mask in the credit comparison on the Internet in months. There is no upper limit for the repayment term. For understanding, the banks have divided the repayment terms into three different categories:
- Under 12 months: This is understood by the banks of a short-term loan.
- 12 to 60 months: In this period speak loan of medium term loans
- Over 60 months: At this term, banks speak of a long credit period
The loan amount
The term “loan amount” is almost self-explanatory, it is the amount that the borrower receives from the lender. The loan amount is expressed in USD in Europe and repayable to the lender during the term of the loan. In addition to the original loan amount, interest and fees are paid by the borrower. As a rule, the loan amount is paid by a monthly installment.
The loan amount usually ranges between 2,500 and 50,000 USD. Of course, some banks also have smaller loans, which are called small loans, or even a much higher amount, for example to finance houses or apartments. These so-called building loans often move in the 6-digit range.
In the credit comparisons online one finds however only few offerers, which offer a loan over 50.000 USD. The absolute maximum sum is 100,000 USD.
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- Student Loan
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