Low-interest loans: something that everyone wants and with some experience you also know where to look.
Almost everyone will have to take out a loan in the course of their life. If you are dealing with this topic for the first time, you are somewhat upset – especially when it comes to the terms of a loan. Of course, you have to pay interest and other fees for (almost) every loan, everyone is aware of this. However, there are significant differences in interest payments and everyone is looking for a low-interest loan. However, this unpleasantness can be more difficult if you think at first, but not necessarily.
Low-interest loans from the state
Low-interest loans, even loans without any interest, are mostly loans from public authorities, which means they have a state background. With such loans, however, the loans must also have a specific purpose in order to be received. It is often already prescribed what the borrower is allowed to finance with the money and what is not. A low-interest loan from the state can be obtained if you carry out modernization or refurbishment work on your house, for example, as well as the construction of a new house. Such promotional loans are very low-interest or often have no interest. But the loan can only be used for these measures. With regard to house construction, particular emphasis is placed on energy saving measures.
Low-interest loans from the bank
Things are a little different at a bank. Interest-free loans are (almost) not available from a house bank – you should be a bit skeptical here. In the case of a low-interest loan from the house bank, however, certain conditions must also be met for this. In particular, borrowers with a good credit rating and corresponding collateral are rewarded with particularly good conditions for their credit. A low interest rate at the bank depends almost exclusively on the creditworthiness of the borrower. But the Schufa information also plays a role, which, if it is a very positive one, also helps to get favorable interest rates on a loan. People with low incomes offer less security to the bank, which increases the risk. In this respect, people with low incomes will also have to expect a higher interest burden.
Long-term or new customers at the bank
Low-interest loans can also work as a lure, and not necessarily in a negative sense. It is often the case that new customers, in particular, receive favorable interest from the bank – this is only the bank’s strategy to acquire new customers, but is advantageous for the borrower. The retention of new customers then usually means that an account with the bank has to be opened.
Another way to get low-interest loans is simply to ask. If you have been a bank customer for many years, it can also assess them better and knows about your creditworthiness and possible risks. Long-term customers of a bank are often rewarded with low-interest loans, since the bank naturally does not want you to switch to the competition.
But even if you have been a customer for many years, you should still pay attention to your history. If your account is overdrawn, you, as a long-time customer, cannot necessarily hope for good conditions and therefore low interest rates. Of course, there is still the condition of your income that you receive.