Banks make every effort to meet all of their customers’ credit needs. Gone are the days when, as a prospective customer, you had to “beg” for a loan. Today, the banks are begging customers to do their financing with them, please. The “begging” and offering is done via a very large selection of loans, which are also accompanied by an attractive interest rate and many discounts. Accordingly, there are many different bank loans that can be divided into three broad categories.
The categories in the area of bank loans
Bank loans are divided into short-term loans, medium-term and long-term loans. The short-term loans have a term that does not exceed 6 months. These are mostly consumer loans that support the purchase of a small object and are accompanied by a very small loan amount. The account can also be settled with such a short-term loan.
Medium-term bank loans have a term of up to four years. We are happy to provide installment loans that, for example, enable the financing of a car or the purchase of important items with a higher value. A debt rescheduling can also be carried out with a medium-term loan. The interest and the amount of the monthly installments are often based on the personal requirements of the borrower.
One speaks of a long-term loan if this is accompanied by a repayment that is over 4 years. These are usually real estate loans, investment loans or also working capital loans, which are necessary for the establishment or maintenance of self-employment or provision for old age. In order to get a loan approved, you should have good conditions.
Not fulfilled with a fixed employment contract
And these are not fulfilled with a fixed employment contract. A long-term loan should and must also be a guarantor. It is good to consider the possibility of debt restructuring in the contract. So in the case of a better loan offer, you can change the loan and save a lot of money. Also, with a long-term loan, you have to be aware that the financial obligations go over many years. The monthly rate must therefore be calculated so that repayment is possible even in financially difficult months.
In general, you should compare several offers before taking out a loan. And it doesn’t matter how big the loan is. Even small interest rate differences can turn out to be a big financial difference in the end. Nobody wants to give money away. Especially not when you have to work for it.
Tip: A good comparison can be made on the Internet. With a comparison calculator you can calculate many options without previous knowledge and thus find the best offer. As a rule, the loan can then be applied for straight away via the Internet.