Loans can be applied for with a wide variety of terms. As a rule, this is based on the loan amount and the chosen installment. With an installment loan, a minimum term of one year normally applies.
Lending over the Internet
Borrowers looking for a low-interest loan can choose from many attractive loan products. The range of loan offers has increased significantly in recent years, particularly through the Internet. More and more banks have specialized in online lending. These offers usually stand for free use, low interest rates and flexible terms. Particularly short terms are also available, which can also be used to apply for a loan for one year.
In this case, the borrower can usually look forward to low interest rates because the banks have a lower risk of default. However, borrowers who choose a short-term small loan should also compare the different providers. This can save money, because the conditions differ enormously in some cases.
Credit for one year – what needs to be considered when comparing?
Borrowers who want to save money should pay particular attention to the effective interest rate when comparing loans. It is important that a distinction is made between target and effective interest. The borrowing rate represents the adjusted interest rate and is therefore not very meaningful. The effective interest rate, on the other hand, takes into account all fees, risks and contractual terms, whereby the creditworthiness of the borrower also plays a role. Especially borrowers who have a high income and a positive credit rating information can look forward to a particularly low effective interest rate.
But even with low-income borrowers, this should be the case with a one-year loan. Statistically speaking, short terms are associated with a lower risk of default. As a result, banks usually always give low interest rates. A clear advantage of online offers is the simple application and the quick availability of the loan amount.
Comparison with loan calculator
The loan calculator offered on the Internet is very useful and important thanks to the reliable comparison results. When comparing the loan calculator, individual details can be given, for example loan amount, term, installment amount, usage, etc. The best loan offers from the various providers are listed below within a very short time.
The loan comparison is non-binding and free of charge and should therefore be used in any case to choose a cheap loan with fair conditions. In this way, the best interest can be called up permanently and a lot of money can also be saved with a loan for one year, i.e. a short term.
Guarantees or other guarantees can help
If the borrower’s credit rating file is not correct and leads to the loan being rejected, it can be helpful to provide a guarantor. This reduces the credit default risk for the bank, because the guarantor undertakes to pay the installments should the borrower default. It is therefore necessary that the guarantor’s creditworthiness is good and that sufficient income can be proven for the bank to accept it.
If the borrower has valuables, such as a life insurance or property, this can also be used to secure a loan. If this doesn’t help, all that’s left is the personal loan. This can be applied for in a private environment or on the Internet on many websites.