Not to be confused with private loan, which is provided by banks, incidentally, with the similar-sounding loan from private, but this is a private loan, which is awarded on credit marketplaces. In contrast, traditional personal loans are characterized by the fact that the bank acts as a lender and thus gives its private customers the opportunity to finance certain expenses. Truest choices for the 100 loan options are there.
What can a personal loan are used for?
One of the main features of personal loans in the form of installment loans is that almost every bank releases their customers’ intended use. Thus, in principle, private loans can be used for all private expenses, so there are little or no restrictions in this respect. In practice, in particular, the following uses, that are quite typical for the use of a personal loan:
- Buying a car
- Holiday trip
- Move
- Purchase new furniture
- Buying household appliances
- Acquisition of media devices
- Financing of other expenses
In principle, the personal loan is only not suitable for very large expenditure and thus financing, such as the construction or purchase of a house. In this case, the real estate loan would then be much better suited, since the average loan amounts for personal loans are usually – depending on the bank limited to 50,000 or a maximum of 75,000 dollars. However, within the typical loan amount of $ 2,500 to $ 50,000, the personal loan can be used for all financing projects that the customer would like to carry out.
What is the legal basis for the personal loan?
One of the most important legal bases for private credit is the consumer credit guidelines that banks must follow in this country. Among other things, these guidelines state that each bank is required to provide the customer with the loan amount to be paid at the latest upon request. The indication of the annual percentage rate of charge is mandatory and determined within the consumer credit lines. In addition, there are other protective measures that serve, among other things, that the customer can compare offers well with each other, for which the highest possible transparency is necessary. However, the Consumer Credit Directives also stipulate that the bank must first carefully check who is allowed to receive a personal loan at all. The first step is to establish the customer’s creditworthiness, while the second step is for the bank to assess the applicant’s creditworthiness.
Where can I apply for a personal loan?
Nowadays, there are basically two ways in which you can apply for a personal loan. The classic variant is that you go to an office of your bank and make an appointment there. As part of the credit, you can then apply for the desired consumer credit, and it usually takes a few days to more than a week before you actually receive the loan amount in your checking account. Applying for personal loans in the office is nowadays almost only recommended if you have a need for advice. This can be the case, for example, if you are using an installment loan for the first time or would like to have some information from the adviser on the repayment or other condition.