Cheap loans in comparison

Find the right provider

Finding the best loan is not easy – but you can greatly simplify the loan search thanks to some tips. We therefore explain to you how you can recognize favorable conditions and how you can receive your desired credit step by step.

Important for the loan comparison

  • Very easy to compare
    Carry out a credit comparison in a few steps, which will be neutral in the first step. Simply enter loan amount, term and purpose and get a first overview.
  • Choose the loan amount carefully
    First, calculate how much credit is really possible for you by setting up a household bill. Possibly. You can reduce the need for credit by using financial investments and thus save interest.
  • Consider earmarking
    Depending on the intended use, there are other conditions and tariffs, but then here are also collateral or guarantee to provide and actually binds to a specific use.
  • Shorter term = lower costs
    Shorter terms also reduce the total interest payable. But keep in mind that the monthly installments are still within your budget.

So it works with the cheap credit

So it works with the cheap credit

Who wants to take an online loan and ideally even has a good credit rating can choose from various loan offers. Reputable credit providers are first and foremost those who transparently list all ancillary costs and guarantee you a high degree of flexibility. In addition, you should pay attention to some conditions in order to recognize favorable offers.

  • interest rate
    The interest rate is a criterion, although you can actually compare different offers only on the basis of the effective annual interest rate. This includes the borrowing rate, which is often tied to installment loans, ie is already fixed for the term.
  • Additional costs
    On top of this are additional costs, such as agency fees or processing fees. The law stipulates here through the Price Indication Ordinance (PAngV) how banks may advertise their loans and what information must be provided.
  • Special repayments and installment breaks
    A favorable loan can be used if the bank grants you the option of special repayment. Increasingly, there are also offers that allow installment breaks. If you are able to repay the loan early due to bonus payments or other circumstances, further interest payments can be avoided. Conversely, the disadvantages are manageable, it should be difficult to apply the rate for a month or two.

Termination as an alternative

Alternatively, you can cancel early after a minimum term of six months, each with three months’ notice. For contracts concluded after June 11, 2010, the notice period is even one month. If the remaining term is less than one year, a maximum of 0.5 percent may be demanded as prepayment penalty. Otherwise, the maximum limit of 1.0 percent applies.

In addition, all those who additionally provide a second borrower (spouse, family members) receive an interest advantage. The only requirement is that this person lives with you in the same household.

For more tips, see our special article on cheap credit.

Collateral and guarantees increase the chances

Guarantees, above all, give young people, such as career starters, the chance of a cheap loan. Do you have collateral, such as a life insurance ? Again, these can be assigned in a standardized manner in order to reduce interest rates.

However, offers that are only granted on condition of credit insurance are dubious and, moreover, expensive. Such loans are discouraged. It is often advertised as a residual debt insurance, it then provides in case of illness, unemployment or death. That such insurance actually improves the scoring, so your personal creditworthiness, is unrealistic.

If the residual debt insurance is a must

Insofar as the bank makes such insurance mandatory, it must also include the costs in the Effective Annual Interest Rate. In this case, you should check how long the waiting period (exclusion of benefits) is and what is considered a “benefit claim”. Many tariffs require a minimum time for incapacity or unemployment. Term life insurance and disability insurance are recognized alternatives that are accepted by many banks.

Interest rates often influenced by the purpose

Many loan offers are tied to a specific purpose, such as car loan, mortgage lending or modernization loans for the home. In this case, either the registration certificate Part II must be deposited as collateral or proven by documents of the home and land ownership. The bank thus gets a security to utilize the granted loans if necessary, which are associated with significantly lower interest rates.

In addition, a distinction is made between different groups of persons: permanent employees, civil servants and retirees are among the preferred customers due to the secure income situation and can secure favorable conditions, for example, through civil service loans. Self-employed or freelancers, on the other hand, often fall through the grid, often having to provide additional collateral, obtain a guarantor and prove their income over several years. In addition, factors such as dealing with credit cards or with the credit line are considered in the past. For this reason, it can be quite advantageous if you have your own account and credit card at the bank, which should eventually grant the loan.

In the case of classic installment loans, it is customary in any case that a sale via the income is agreed in the contract. However, since there are seizure limits, according to which the bank is only allowed to enforce a certain minimum net income, the minimum income is correspondingly high from certain loan amounts. The more children you have, the higher the requirements typically are.

Cheaper conditions thanks to family members

You may be able to secure more favorable terms for graduation through family members. Personal loans can be arranged just like classic installment loans, with the usual collateral and obligations. And if you finance even a part of the loan amount, then the loan application may be able to do without collateral because of the lower amount.

Step by step through the credit comparison

Step by step through the credit comparison

Our explanation of the most important steps should help you to find the right loan for you and get it paid out smoothly. Before you think about a loan, however, you should first clarify your financial circumstances – this helps a so-called household bill.

How much credit is possible? The household bill

A household bill should list all regular monthly charges. The whole thing is offset against the available net household income, whereby as an employee you have to fulfill additional creditworthiness conditions. For classic installment loans, permanent employment and a minimum income are common.

The bank sets its own lump sums per capita, especially for the cost of living. It is important for you to provide truthful information here and to remain realistic. Otherwise there is a risk of obtaining unattractive credit terms or assuming liabilities that are too high in relation to your income.

This is how you proceed step by step (alternatively our household calculator also helps you):

  1. Inputs and outputs
    Keep track of all bank statements for the last six to nine months and mark both regular and irregular income and expenditure. In particular, irregular debits for insurance or pension products are often overlooked. It is important to add child benefit, even if the children have already moved out but are still entitled.
  2. Existing liabilities
    Are there current loan installments, and if so, what are these and when does the installment expire? Under certain circumstances, it may even make sense to apply for a higher loan amount in order to repay the old debts prematurely.
  3. Rent and further costs
    Will the rent be adjusted upwards in the future? Are you planning a move? All these are factors that often cause additional costs. You should therefore look over possible costs and set a monthly amount, stretched over the requested term. Are holidays planned? Again, simple flip-flops help to realistically include such costs.

From the comparison, through the application to the payment

The following list shows you by example what the typical application for a loan looks like and what the most important points are.

  1. Determine credit volume
    Use our loan calculator to compare the cost of different loan amounts and terms with each other. The volume of credit should be chosen so that all costs incurred are covered. Note, however, that there are sometimes interest limits when exceeding certain sums. It may therefore make sense to spend a little more equity and to make the loan amount smaller.
  2. revenue and expenditure account
    You then need to check if and how much credit you can afford at all. The charges should not exceed ⅓ of the net income remaining after deduction of all fixed costs. How you list and calculate your financial circumstances has already been explained in the budget statement.
  3. loan comparison
    In this step, all information, such as the amount of the loan, the duration and the purpose, is used to compare the participating banks. Using the conditions and sorting options, you can see how the calculated rates are composed.
    Here, the following applies: special repayments or installment breaks are a plus, because this way you stay flexible. Our comparison provides information on the most important tariff characteristics and the experience of users with this or that bank.
  4. loan application
    Once you have decided on an offer, further details must now be given in the loan application. In addition to the personal data, if necessary in addition to the second borrower, a household bill (see above) and employment information is required. In combination with a neutral Private credit query (request credit conditions) these data are now transmitted and finally processed and checked by the bank.
  5. Verification (Postident)
    In order to uniquely identify you as a person and to confirm the request, you must, upon receipt of the offer (in writing and via e-mail) with all relevant documents, go to the nearest branch of Deutsche Post. Part of the Postident is a prepaid coupon that will unambiguously assign your documents to the loan request. Here you simply present an official identification document (identity card or passport with registration certificate) and have the data recorded by the employee. With these documents, the shipment goes to the bank free of charge, which then performs a proper Private credit query and finally checks. Here it may happen that a guarantee is required or, for example, additional proof of income or employment is required. Alternatively, with some providers, a videoident method is possible.
  6. loan disbursement
    Once all the questions have been clarified and the modalities have been completed, the bank establishes a credit account and initiates the payment. Depending on the bank, this process may take up to seven business days before the loan amount is credited to your checking account. Some banks use flash payments, so that like a instant loan, the total amount is more in the account.

In our loan calculator, you can compare the average terms of the integrated banks and intermediaries based on the loan amount, the term and the purpose. Of course, our comparison is completely free and there is no processing fee.

Pay attention to the completeness of the documents

Two top reasons why a loan is rejected are incomplete documentation and / or lack of legitimacy (Source: Independent Center for Privacy Protection Schleswig-Holstein, 2014). Therefore, make sure that you submit complete documents when applying for a loan.

Risks and hedging

The application and the taking out of a loan involves a certain risk for both parties. For the applicant and later borrower, overly optimistic planning and worsening economic conditions are the biggest risks and can lead to over-indebtedness. A completed residual debt insurance secures him in case of unemployment and serious illness and is also in the event of death. In addition, help with over-indebtedness can offer the discussion with a debt counseling center. The last resort is consumer insolvency proceedings.

Another risk for borrowers in the long term is flexible interest rates. Although these rarely lead to bankruptcy, they reduce the ability to plan, which should be taken into account when comparing different loans.

For creditors, there is a risk that they will be deprived of important information regarding the creditworthiness before concluding a contract. In the worst case, they lose all or part of their capital if their debtor can not pay – for this reason or because his economic circumstances have worsened. In advance, obtaining a Private credit information (Private credit score) offers a certain degree of protection, if an emergency has occurred, previously defined securities or a guarantor can compensate for or at least limit the damage. Of course, believers also benefit from a residual debt insurance.

Special feature peer-to-peer credit

Special circumstances apply to online loans issued by private individuals (also called peer-to-peer credit). The mediating consultants and platforms have very different terms and conditions and protections. Anyone considering this procedure should therefore take this aspect into account when making an online loan comparison.

questions and answers


What is a loan?

Credit is a collective term behind which hide many different forms of property and money lending. Basically, a distinction is made between personal loans and bank loans. The term personal loan is to be distinguished from the “private credit”. Colloquially, they are sometimes equated, but: While the first term refers to the situation of the borrower, the latter refers to the origin of the borrowed money.

What are the aspects of a loan?

Loans are mainly distinguished by the following aspects:

  • Amount : Loans are referred to as small, medium and large loans, depending on the amount borrowed. For example, installment loans usually fall into the former category.
  • Duration : A period of up to six months is considered to be short-term; from the age of four, the loan is termed as long-term.
  • Use : Loans for acquisitions and holidays are considered consumer credit, of which, for example, the intermediate credit stands out, which serves as a bridging loan for mortgage lending or a similar project.
  • Type of collateralization : In the case of a personal loan, the creditworthiness of the borrower is decisive for ensuring that it is granted; for a material loan, it is a financial asset or a tangible asset.
  • Lender : Does the loan come from a bank, the employer, the state, or is it a private loan?
  • Borrower : Is the loan taken up by private individuals or business customers, banks or the state?

Which forms of personal credit are there?

Loans are granted in various forms. In the end, the purpose and duration of use as well as the personal demands on flexibility, which is most appropriate in the respective case, decide. In the area of ​​personal loans, these are the most important characteristics:

  • Disposition credit: Also called Dispo for short, an overdraft facility in connection with the current account, usually for low amounts and short terms, flexible, but often with high interest rates.
  • Installment Loan : Often referred to as Consumer Loan and Acquired for Acquisition, it will be paid off at fixed rates and interest rates over an agreed period of time.
  • Frame Loan : Also known as Severance Loan, where money can be borrowed and repaid as needed within a set framework.
  • Securities Lending: Securities lending, can be used to buy new shares and many other vendors, often a cheap loan.
  • Policy Loan: Life insurance or annuity insurance, a flexible and also often cheaper loan, can have a negative impact on old-age provision if not repaid.
  • Mortgage lending : long-term credit for the purchase or construction of a property, often composed of several components such as home savings loans and non-cash loans.

What do I need for the loan application?

Normally, salary or wage statements must prove the income of the last three months. Often, bank statements are required, which represent the private income and expenditure without any gaps. In addition, a self-assessment is required, where part of it is considered as a household bill and in the other part information on payment behavior are queried.

Self-employed persons are required to carry out business evaluations (BWA), often also lendable insurances or other securities. Pensioners often have an age limit of between 65 and 75, depending on the bank.

How can I rate a loan offer?

“Best credit for any purpose” or “Cheap finance without risk” are typical advertising statements, as everyone knows. These promises are then usually valid only for certain groups of people, other conditions must be met.

Basically, loans with purpose are cheaper, because the purpose of purchase (car, real estate, etc.) serves as collateral. Typical installment loans are not collateralized, that is, at your own discretion, with only salary claims being assigned to the bank.

Do you want to get out early if it is financially feasible? Then special redemptions should be possible. Also check ancillary costs, they must be listed in the product information sheet of the bank. This consumer information is uniform throughout the EU.

Is there a loan for the unemployed?

Unemployed people are not fundamentally excluded from lending in Germany, but banks always require a co-applicant. This must be able to prove an attachable income, ie above the seizure exemption limit. It is updated every two years by a garnishment table and prevents the subsistence level from being endangered.

In 2015, the limit for earned income is 1,045.04 euros per month, for debtors without maintenance obligations. For the first debtor, this value increases by 393.30 euros, each additional is added with 219.12 euros. Partially, the Federal Employment Agency can intervene, but special uses according to § 22 SGB II have to be proven.

What is behind a loan without interest?

Such offers are available from department stores and sometimes also from car dealers who work with the respective Autobank. They are intended to increase the sales of certain products or even model series and are therefore often linked to these offers or specific periods.

For you as a borrower, these loans are actually at no extra cost, however, the dealer must give the bank a default insurance and internally pays an interest for this. These costs are added to the purchase price, often alternative offers are cheaper. In addition, consumer advocates criticize the zero-percent financing.

What is behind the two-thirds interest?

Banks have to specify according to § 6 an effective annual interest rate, which actually ⅔ the customer is granted. This is to prevent luring products from distorting the market. Of course, that’s no guarantee that you’ll get that interest rate yourself. But he helps to compare the different offers.

What effects does the comparison have on my Private credit?

Private credit stores the payment experience of banks, mail-order companies, telecommunications companies and Co. In doing so, different scores are calculated for each industry, which should represent a statistical probability of default.

If you have multiple credits that have been properly fulfilled, this increases the value. On the other hand, garnishments, credit cancellations, enforceable titles or even bankruptcy proceedings lead to negative values.

During the comparison, a neutral condition request is submitted, which is only forwarded for information for ten days. Only with the actual realization of a loan a Private credit entry is created, which also affects the score.

Which different lenders are there?

The bank is a classic point of contact for a private loan, but there are still many more jobs as lenders. Thus, the neighbor grants a property loan if he temporarily helps with sugar and eggs, while the online retailer offers a supplier credit as soon as he sends the goods without advance payment. By contrast, larger sums in the form of an installment loan, for example, are given to furniture stores, car dealers and other sellers of expensive goods, who accept installment payments – usually including a fixed interest rate.

Condition request or loan request – what’s the difference?

To distinguish between requests for terms and offers, there are two characteristics: the condition request and the credit request. If you only want to ask for the credit terms of a bank without asking for a specific offer, this will be saved in your Private credit database as a condition request. This is visible only to the consumer.

If, on the other hand, you obtain a concrete loan offer, your Private credit file receives the characteristic “request credit”. This is saved by the Private credit for one year and is visible to other banks for ten days. Loan requests are negatively included in the score calculation.

At Financedel, you only provide a “request credit terms” when soliciting quotes.

How many years should I commit myself?

For installment loans, the term can be agreed individually according to your personal circumstances and the use of credit. If the monthly burdens allow, a shorter term is recommended. Also pay attention to whether the bank charges processing fees, as these will make the loan relatively expensive for a short term. With a short term, the monthly installments will be higher, but the overall cost will be lower, as the effective rate is usually lower. The terms of installment loans are usually between 12 and 72 months.

Important: The term of the installment loan should basically not exceed the useful life of the purchased item. Some banks give installment loans for the car or motorcycle purchase with a term of up to 24 months on particularly favorable terms (car loan).

What is the difference between nominal and effective interest rates?

The nominal interest rate indicates the amount of interest on your loan and is used to calculate the interest rate you pay to the lender. The agreed interest remains guaranteed over the entire term.

In contrast to the nominal interest rate, the effective interest rate to be reported in accordance with the Price Indication Regulation takes into account price-determining factors from the regular credit history. Price-determining factors are the nominal interest rate, processing fees, interest and redemption charging dates, repayment rate, start and amount as well as the payout price. These factors are distributed in the calculation to the agreed fixed interest period. The result is the effective interest rate, which gives you the total cost of the loan per year in percent and serves as a theoretical benchmark. You can now compare loan offers with the same fixed interest period using the effective interest rate. For this, however, all price-determining factors must be identical except for the nominal interest rate in the respective offers. Unfortunately, as the calculation factors are not always given to you, a price comparison over the effective interest rate is only possible to a limited extent.

The comparison is made even more difficult by a number of other costs which are not included in the effective interest rate. We therefore recommend that you examine in addition to the effective interest rate, the further costs for the loan you require.

What costs do I get for an installment loan?

When you use a installment loan, you only pay for interest. Compare also our top conditions. Upon request, you can take out a residual debt insurance.

NO costs will be incurred for negative declarations, agency fees, account maintenance fees, costs for reimbursement of expenses, cash on delivery fees and closing fees! In the area of ​​consumer credit (installment credit), § 4 (1) of the Consumer Credit Law  prescribes the sum of the costs in the written loan agreement. In general, the provisions of the Price Indications Regulation must also be observed for installment loans (including details of the APR).

Can I cancel loans?

Yes, you have the right to repay loans prematurely, eg by taking out a cheaper loan from another bank. However, the processing fee paid by you will not be refunded by the relieved bank. During the agreed interest fixing period / loan term you can terminate the loan at the earliest 3 months with a notice period of 3 months and repay the outstanding loan amount due to the legal regulations.

You can also repay partial amounts at most banks during the agreed term. With installment loans, the monthly rate remains the same and it shortens the term. Under certain conditions, there is an extraordinary termination right on the part of the borrower, but also of the lender.