A payday loan is then mentioned when it comes to borrowing by means of credit from a private individual. In turn, a private individual must have a monthly income to apply for a loan. A personal loan is always taken for a specific purchase. This purchase, for example, the purchase of a car or a television, must be specified in the intended use.
To your credit
The other way to borrow would be a commercial loan. Such a company loan can only be taken by someone who owns a registered company. The biggest difference between a private and a commercial loan is the amount of interest and collateral.
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Interest rates on personal loans are usually determined on the basis of credit rating
A classic personal loan is taken for the purchase of furniture, electrical appliances or for cars. In this case, the financing amount is usually between 5,000-25,000 euros. Of course, personal loans are also given to real estate clients, but here the interest is more differentiated. In the case of a loan for smaller purchases, the interest rate is determined as a function of the credit rating. This means that an individual interest rate is set for each customer. The amount of the interest rate can only be determined after a personal credit request.
In order to get an orientation regarding different conditions our credit search is suitable.
In the case of a private loan for real estate, on the other hand, the interest rates are set by the bank, since the property is available here as collateral. In the case of a corporate loan, on the other hand, interest is usually not based on creditworthiness, but rather on the acquisition basis of the company. Also, several company documents such as a balance sheet, a profit and loss account or a tax assessment must be presented. This credit decision is usually tedious, unlike a personal loan.
Collateral for a personal loan can easily be provided
Any bank that issues a loan has the risk that the repayment by the customer is not respected. To cover this risk, the customer must pay a borrowing rate. In addition to this interest payment but also many banks require a security from the customer. This security can be required in different ways. In the case of a real estate purchase, the property itself is deposited as security by means of a mortgage. If the vehicle is purchased by car, the vehicle can be transferred as collateral so that it can be sold by the bank in the event of non-compliance with the installment repayment.
But even the cession of life insurance or savings are gladly taken to secure a loan. Anyone who has no security for the award can take out a residual credit insurance with the conclusion of a personal loan. For a company, on the other hand, the company itself is liable for borrowing. For example, open receivables from customers are often assigned to the bank or machines are assigned as collateral. Again, the security is usually more expensive than a personal loan.
Apply for a personal loan without complications
So even if you have no collateral, you can apply for a loan. Anyone who has a regular income, has the opportunity to make a loan application. A personal loan is the optimal solution for all those who want to meet a shortage of money quickly and easily.
To the comparison calculatorA cheap personal loan is now available in many places on the Internet, the largest providers are probably Portalose and Creditend. Both providers also offer loan comparisons, which allows them to find the best terms.
However, a cheap personal loan is not completely without research to get, you can not always rely completely on the results of the comparison calculator, every now and then there are deviations. In our research, we have put together all the important information to facilitate the credit search as much as possible.
Apply for personal loan online
Today, a personal loan can be applied for online, many providers in the network actually have better conditions than the big banks. Among other things, this is due to the fact that no branches need to be operated here and the processes are often simplified. The money thus saved is passed on to the customer in the form of better interest. In the following table they started our personal loan comparison and our tests to all major credit providers.