Loans with fixed interest rates are very popular because they offer a transparent comparability of the conditions due to the immediate estimation of the costs. In fixed-rate installment loans, the loan rates are not determined depending on the individual creditworthiness of the borrower, but these vary only depending on the chosen term and the desired loan amount. Borrowers of a fixed-rate installment loan can therefore rely on the terms and conditions of the respective providers and do not have to worry that lending will only be possible on significantly worse terms.
Offers the installment loan fixed rate
Very few banks offered a fixed rate installment loan in recent years, but in the meantime the number of loans available with a fixed interest rate in Germany has risen again, because the Consumer Credit Directive has become binding and banks and credit institutions are joining the new trend that the Consumers want to know before lending, in what amount they expect credit costs. There are no longer many consumers today who fall for the promotional offers with the most favorable interest rates.
Conditions installment loans fixed interest
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The conditions differ only depending on the term or the loan amount. Especially for borrowers with a medium or rather poor credit rating, these fixed-rate loans are usually much cheaper than the corresponding loans with a so-called credit-based interest rate, which is accordingly higher in most cases. Borrowers who, on the other hand, have a very good credit rating can also choose a loan with credit-rating-based conditions, since this usually results in significantly lower incoming interest rates.
Requirements installment loan with fixed interest
Anyone who chooses a fixed-rate installment loan must of course, as with all loans, have a minimum creditworthiness. However, for fixed rate loans, the likelihood of credit rejection for creditors with a bad credit rating is higher because the risk of credit default on fixed rate loans is shared equally among all borrowers. Borrowers who receive a loan with fixed interest rates, in any case, are spared from unpleasant surprises.