For almost 140 years, banks in Germany has been reputed to be the perfect partner for private individuals in matters of investments and financing. The installment loan was considered one of the best loan offers for the middle and lower classes on the German financial market at all. But in the years 2009 and 2010, the success story came to a sudden end. Lenders took over banks and replaced the traditional bank with the exception of one branch. With him also the installment credit disappeared from the face of the earth. The instant loan has followed its footsteps.
The features of the former installment loan
banks’s installment loan was one of the first ever loan offerings that attempted to provide flexibility to the borrower. Term and loan amount were subject (within certain limits) to the free play of negotiations between the bank and the borrower. Due to the flexible repayment term, the monthly installments have also been flexible. The interest rate was guaranteed for the entire term. A premature loan repayment (the right to special repayment) was given to the installment loan .
The heir to the installment loan
Lenders’s new instant loan has taken on many elements that have made its predecessor so popular among its customers. The loan amount can be freely selected up to 25,000 euros, in some banks even up to 50,000 euros. The term is also flexible. It varies from six to 84 months. The money is transferred quickly and unbureaucratically to the current account of the borrower. At his request, this can happen even directly after the consultation in a branch. The loan can be secured by a residual debt insurance. This means that if unexpected and unpredictable events occur (for example, unemployment or disability), you still do not have to worry about repaying the loan.