Different banks offer loans on different terms. Some prospective creditors may particularly value low installments in order to keep the monthly charge low. If you are looking for a loan with low rates, you have several options.
Choose a long-term loan
Many banks offer their installment loans on flexible terms. Interested parties can choose both the loan amount and the loan term themselves within a certain range. Since borrowers can largely determine both the loan amount and loan term within the specified range, they can also influence the monthly installment. The longer the term is chosen, the smaller the monthly installments.
The terms of a installment loan can be very different. Depending on the bank, the shortest term is 6, 12 or 24 months. The maximum possible term is usually 84 months. In individual cases, installment loans with a term of up to 120 months are also possible. It should be noted here that some banks adjust the loan interest to the chosen term and the loan interest can be higher for a longer term. Banks see a loan with a longer term as a higher default risk and try to compensate for this with higher interest rates.
Prospective borrowers should carefully consider what is possible and which loan rate best fits their own budget when choosing the term and the amount of the loan. Higher interest rates and thus higher loan costs have to be weighed against a long term and low credit rates. If you choose a long term, you should make sure that special repayments are possible.
Choose loan with final installment or down payment
A loan with low installments is also possible if potential borrowers opt for a loan with a down payment or a final installment. The credit rates can be significantly reduced by a down payment or a final installment. However, loans with a down payment or final installment are usually only offered to finance a car.
What are the benefits of low credit rates?
Those who opt for a loan with low rates have the advantage that the monthly charge remains low. Low rates also fit into a rather small financial framework.