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Installment loan – what is it actually?

Summary

The installment loan is an installment loan for private individuals. Almost all private consumer credit is covered by this term. As a result, private individuals can now fulfill their dreams much faster than in the past. Installment loan: explained quickly […]

The installment loan is an installment loan for private individuals. Almost all private consumer credit is covered by this term. As a result, private individuals can now fulfill their dreams much faster than in the past.

Installment loan: explained quickly and easily

The installment loan describes the way in which you can repay a loan to the bank. With this form it is possible to make partial payments. In practice, you have the option of repaying a sum you have borrowed in parts to the lender on a monthly basis.

Classic forms of this are instant or vacation loans. You will receive a certain amount of money from the bank – for example 5,000 euros. You can then easily repay this amount over the next few months or even years. Of course, the financial institution will charge you additional interest and a processing fee for borrowing the sum. (Advantages and disadvantages of an installment loan)

Dealers also offer loans

Instead of saving a long time for the fulfillment of your dearest dreams, you can fulfill these wishes immediately with an installment loan. Even retailers offer the option of paying for goods in the future in order to encourage even more consumption. In some cases, there are even promotions in which you do not have to pay interest on the purchase amount. (Credit rating: what exactly is that?)

Overall, however, you should always be careful when taking out loans. The quick money is a great temptation, but a spiral of debt can also quickly develop. Make sure that you are not living beyond your means despite tempting offers and weigh up whether a loan is really worth it.