April 3, 2019
Are you looking for a simply structured loan whose interest costs can be well planned? In this case, you are lucky, because the installment loan offers just that and also represents the standard form of all loans. So if you are looking for a conventional loan, you will be confronted with the installment loan. In the following, we will show you exactly what a installment loan is and how you can significantly reduce costs through an efficient comparison.
What are the advantages of an installment loan?
If you opt for a installment loan, you can rely on a whole range of advantages right away:
- Constant repayment costs ensure planning security
- Lower interest costs due to high repayment during the term
- Easy to apply online
- Low interest costs due to good comparability
If you need a installment loan, you will receive a simple structured loan. With our installment credit comparison you also have the opportunity to quickly find the really cheap offers on the market.
What is actually an installment loan?
An installment loan is characterized in particular by the fact that it is repaid in constant monthly installments. So you get the agreed loan amount and pay back the same amount for the repayment plus the interest every month. At the end of the agreed term you have repaid the installment loan and are completely debt free. To show you the construction in more detail, we have prepared a repayment plan for a 12-month installment loan:
Table 1: Savings potential through a civil service loan, all interest rates are exemplary and may differ from the true circumstances
|month||Debt month||payment by installments||interest component||repayment portion||Debt at the end of the month|
|1||5000,00 €||426,66 €||18,33 €||408.33 €||4591.67 €|
|2||4591.67 €||426,66 €||16,84 €||409.83 €||4181.84 €|
|3||4181.84 €||426,66 €||15.33 €||411.33 €||3770.51 €|
|4||3770.51 €||426,66 €||13,83 €||412,84 €||3357.67 €|
|5||3357.67 €||426,66 €||12,31 €||414,35 €||2943.32 €|
|6||2943.32 €||426,66 €||10,79 €||415,87 €||2527.45 €|
|7||2527.45 €||426,66 €||9,27 €||417.40 €||2110,05 €|
|8||2110,05 €||426,66 €||7,74 €||418.93 €||1691,13 €|
|9||1691,13 €||426,66 €||6,20 €||420.46 €||1270.66 €|
|10||1270.66 €||426,66 €||4,66 €||422,00 €||848.66 €|
|11||848.66 €||426,66 €||3,11 €||423,55 €||425.11 euros|
|12||425.11 euros||426,66 €||1,56 €||425.11 euros||€ 0.00|
|total||5000,00 €||5119,97 €||119.97 €||5000,00 €||€ 0.00|
For an installment loan with a loan amount of 5,000 euros and an annual percentage rate of 4.49% pa, you will pay 426.66 euros per month within 12 months and repay the loan within the term. A total of 119.97 euros in interest due. Conspicuous here are the shifts within the repayment rate:
- Every month, the interest rate decreases
- The repayment share increases by the same amount every month
This is due to the fact that as a borrower you only pay interest on the remaining debt in the case of an installment loan. This is reduced by your repayment every month, which has a corresponding effect on the interest.
Popular installment loans on Manucrediter
- 5000 Euro installment credit
- 10000 Euro installment credit
- 15000 Euro installment loan
- 20000 Euro installment loan
- 25000 Euro installment loan
- 30000 Euro installment credit
Banks on Manucrediter
- Bankile installment loan
- Credit Bankive installment loan
- Ucani bank installment loan
- Superb Bank installment loan
- Intrasaving Bank installment loan
Apply for installment credit – what should be considered?
You would like to apply for an installment loan? In this case, you should consider several aspects when searching for credit:
1. Low interest rates are the most important criterion
The interest rate is also the most important criterion for the installment loan. After all, the loan should bring as little cost as possible. For a cheap installment loan, you can simply use our credit comparison. This filters the installment loans according to the desired loan amount, the interest rate and the intended use and outputs them staggered according to their interest rates. This is how you easily recognize the credit that is particularly favorable. The following example calculation should show you how much money you can save by a credit comparison:
Table 2: Savings potential in the credit comparison – the conditions are exemplary and may differ.
|Installment loan (rather expensive)||Installment loan rather cheap|
|loan amount||10000,00 €||10000,00 €|
|Effective interest rate||6.99% pa||3.99% pa|
|running time||4 years||4 years|
|Repayment rate (per month)||238.42 euros||225.43 euros|
|Interest costs (term)||1444.29 euros||820.52 euros|
|Cost difference||623,77 €|
The comparison shows very impressively that an accurate market check can really save a lot of money. You should also take this opportunity to consult our free installment loan comparison.
CREDIT EXPERT Tip:
If you are planning to reschedule your loan installment, or if you want to buy a new car, you should specify that use. In this way, the comparison will also be extended to special offers tailored to this use. Not infrequently, you can thus save additional interest.
2. Choose the right running time
You can set the duration of your installment loan yourself within certain limits. Common values here are 12 to 84 months, with some banks even granting loans with maturities of up to 120 months. But which term is the right one for your installment loan at the end? To make that decision, you should understand the two main effects of runtime:
- Repayment Rate: If you want to borrow a certain amount of money, you will pay it back in equal installments over the term. If you now extend the term, the repayment amount will be split into more installments and the individual installments will decrease. Thus, you can lower your monthly loan installments and get even higher loan amounts with your disposable income.
- Interest costs: The length of the term, however, also influences the interest costs. For one thing, long-term installment loans are often only given at higher interest costs. On the other hand, however, you have to bear higher costs even with the same interest rate. This is due to the fact that you simply pay the interest over a longer period of time.
For the reasons mentioned above, you should always choose the term for your installment loan as long as necessary and as short as possible. So opt for a term that gives you financially sustainable rates and is so short that you do not have to pay any unnecessary interest costs.
3. Other features
In addition to low interest rates, it may be interesting for you as a borrower to take a closer look at the features as well. Depending on your personal situation, completely different things are important:
- Particularly fast payout: Do you need your installment loan particularly quickly? Today, there are providers who provide a fully digital application line. In this way, you save the post and upload the contract and the documents online. The signature is done by digital signature. In this way, you save a lot of time and receive the money already 24-48 hours after the loan application.
- Special unscheduled repayments: You want to keep the interest cost of your loan low and put additional revenue into the repayment of your installment loan? Usually, special repayments are associated with additional costs through a prepayment penalty. Installment credits with free special repayments are therefore particularly interesting for you in this situation.
- Free rate break: If it is financially not so good, a free rate break can be quite helpful. Normally, banks grant such rate breaks only with great reluctance and for a fee. Meanwhile, this service is used as a customer loyalty instrument. In our comparison you will also find providers with a free rate break per year (if otherwise the rates were always paid on time).
Depending on the personal situation, completely different characteristics can be interesting for a installment loan. Check the individual offers and find your preferred loan.
Get started with the right installment credit!
The installment loan is thus the standard form in the area of loans for private individuals. He has the great advantage that the repayment rates are always the same and is also cost-optimized. With our installment loan comparison, you have the opportunity to take a close look at the market and finally find a installment loan, which provides the desired services at the lowest possible interest costs. Take this chance and reach for it!