When taking out a loan, it should always be about taking advantage of the cheapest possible offer. And if you believe the advertising of the individual banks, then the loans that are offered there are generally very cheap.
Now “cheap” or “inexpensive” is always in the eye of the beholder. Everyone has a different idea here and can only really make a meaningful judgment if the financial relationships surrounding a loan are known. Many consumers always see a cheap loan in connection with fees that may or may not apply to a loan. It is actually the interest that makes a loan really expensive. At this point, however, we want to deal with what constitutes a loan without fees, where it is available and what needs to be considered when taking it up.
Why a loan with no fees?
Fees that can occasionally be found around a loan always mean a possible advance payment as well as a processing fee or a provision fee. While the prepayment for borrowing is dubious and in the past it was often brought into play by credit intermediaries whose clientele have no chance of lending anyway, this prepayment is hardly available today. Indeed, consumers have recognized that this does not affect the credit decision and is therefore unimportant and therefore also dubious.
Processing fees are also rarely raised. And when they do occur, they like to hide in the APR, which includes all interest, fees and charges from the loan. It is also the crucial tool when it comes to how expensive or how cheap a loan really is.
Commitment fees usually only apply if, for example, real estate loans are released in several parts rather than as a large loan amount. Or if a cheap loan offer is “reserved”, it is probably whitish that the loan will only really be needed in the near future. There may then be a charge for commitment fees based on the amount of the loan, the type of loan and the type of provision.
Where can I find a loan without fees?
A loan without fees can actually be found in many places. Simple consumer loans or the classic installment loans that are offered in many places are always particularly cheap. Consumer loans can be taken out from a dealer or from a bank. Admission via the retailer is particularly easy, as the retailer can immediately flow the money from the loan into the purchase and you do not have to ensure that the retailer gets the money from the consumer credit. You take out the loan directly when you pay and only have to sign it.
There are particularly cheap installment loans without fees on the Internet. The direct banks and many traditional banks offer their financial products here, the quality of which can be easily found with the help of a comparison. A credit calculator is required for the comparison, which works out specific loan proposals and presents them in such a way that it is immediately apparent which fees and interest rates may apply. Everyone can then freely decide whether the loan offers should be used or not.
What must be considered when recording?
When taking out a loan without fees, you should never rely on the promises of advertising or bank employees. Only those who have the effective interest broken down will recognize the costs and fees associated with a loan. Otherwise, as a layperson, you have no chance of recognizing the structure of a loan.
It is also important that no loan offers are accepted where the credit intermediary requires prepayment for the processing fees. This is always dubious and actually indicates that the intermediary does not expect a loan agreement to be concluded at all. Otherwise, he would only get paid when the loan agreement was signed.