A cheap loan from a bank can only be determined using a credit comparison. The offer is very diverse, interest rates differ in some cases considerably. For example, a cheap loan from the bank can be granted at an interest rate of 2.89 percent, with other banks the interest rates only start at around 4.9 percent. There is also scope for upper limits between 12.9 and 17.9 percent.
A cheap bank loan through online search
Online and cash advances as well as cheap car finance and urgent loans are offered online. If you are looking for a cheap loan, you should still study the conditions of the provider carefully. Fast money can sometimes be expensive money. There is enough information on the Internet where to find a cheap bank loan, just take the time to compare all the offers. To do this, it is very easy to apply online and with a few clicks of the mouse.
A tip: Many test portals regularly compare loan terms. The search can thus be narrowed down considerably. The banks change their conditions from time to time, but well-maintained online portals research the most current interest rates. A cheap bank loan, however, is characterized by even more conditions than just the interest rate. Exemplary providers already announce on the homepage which group of people are eligible for a loan and in which range the interest rates can move.
According to the regulation on prices, in the case of interest based on creditworthiness, it is also mandatory to state the interest rate that is granted to two thirds of all borrowers. This means that a cheap bank loan should not be selected solely on the basis of the advertising offer, which only mentions the cheapest interest, but rather according to this average value.
It is also crucial whether the bank can give a preliminary promise when applying online. Even a rejection would be helpful so that additional effort such as copying documents is reduced and the next provider can be searched for.
What does a cheap bank loan offer for interest rates?
Although the Cream Bank raised the key interest rate twice in 2011, a favorable bank loan at an interest rate of 2.89 percent is still possible in September 2011, comparable to the low interest rate phase in 2010. However, there are somewhat fewer providers with this extremely favorable interest rate.
Average interest rates – under the best conditions on the part of the borrower – are granted from 3.90 to 4.50 percent. It should be noted that a) the borrower must have an excellent credit rating, i.e. a fixed income and a secure job, and b) the term of the loan must not be too long. The annual percentage rate of course increases with the term, since interest is calculated on the remaining debt.
You can find out how cheaply you can get a loan by submitting a specific loan application. To do this, you must provide correct information about your income, your other obligations and your personal circumstances. Then the bank will give you an exact interest rate. Favorable can also mean that as a self-employed person you get a loan with interest in the single-digit range, which does not have to be a matter of course.
The effort involved in comparing interest rates somewhat discourages some borrowers, but there is no other way to get a cheap loan from the bank. It should be borne in mind that with a loan amount of USD 10,000 and a term of four years, an interest rate differential of just one percent makes up an effective amount of around USD 200. With higher sums and longer terms, the amount becomes much higher.