The opening fee, withdrawal fee, start-up fee or brokerage fee is an expense the bank may charge to withdraw a loan or credit. This cost is always bank specific and usually depends on the loan amount. The expense can either be added to the loan principal or deducted from the loan amount payable to the customer’s account. However, this cost must always be included in the actual annual interest rate of the loan, as stated by the bank, so comparing it between different credit options is worthwhile.
The settlement fee is the euro-denominated fee charged by the bank to the loan customer when withdrawing the mortgage.
A one-time credit is a consumer credit that is fully paid off under a loan agreement and cannot be freely drawn on in installments, such as an overdraft facility.
See the one-time loan
A fixed rate loan is a product in which the interest rate is agreed from the outset of the loan for the entire duration of the loan. Another option is to take a floating rate loan. When you borrow at a fixed rate, you know the interest rate and the amount of the loan over the life of the loan – as the name implies, the rate is fixed. In addition, there are various forms of fixed rate loans – such as annuity, lump sum, lump sum or even loan repayment.
The total or borrowing rate is the sum of the reference rate plus the margin.
The interest period is determined by the mortgage reference rate. For example, the 12-month Euribor-linked loan has an interest rate maturity of one year.
The interest rate cap is the annual percentage rate of charge on a loan, which cannot be charged on a loan of less than EUR 2000. interest rate cap legislation. May also mean a product sold by a bank for a loan (usually a mortgage) where the customer pays that the loan rate will not rise above the cap over the agreed period.
For interest rate comparison see Loan comparison
Consumer credit is a loan that is usually taken to finance various consumer needs, such as goods or services.
Monthly installment see Payment installment
A reverse loan is a mortgage loan, where, for example, 50% of the debt is released from debt-free housing.
A loan is a contract for the loan of money between a lender and a borrower. The exact terms of the agreement are defined in the loan agreement, which can also be called a bond.
The loan period is the period agreed with the bank within which the loan or loan must be repaid to the bank. Can vary from days to years.
The loan application must always be submitted to the bank before a credit decision can be made. Applications can be made, for example, by telephone, online, mobile or in writing.
The loan application annexes are usually required to be submitted to the bank as part of the creditworthiness assessment. These can be used to assess the borrower’s income and financial position. Required attachments may include, for example, a tax assessment, most recent salary statement, pension decision, or pension index increase, as well as the income statement and balance sheet of the entrepreneur.
The loan calculator allows the borrower to test the effect of various loan parameters, such as loan amount, loan period or interest rate, and costs on the monthly installment.
The lender / lender is usually a company or sometimes an individual who borrows money, ie the lender gives the loan to the borrower.
The borrower / borrower is usually an individual or sometimes a company that borrows money, ie the borrower borrows from the lender. Lending always results in a payment obligation in accordance with the terms of the loan.
Loan capital The loan amount you borrow from a bank is the original loan capital. When you repay a loan, the loan principal decreases, but the payments do not affect the loan amount.
Loan amount see. loan capital
Loan insurance is an insurance product that you can use to replace your missing Richard Carstones share as collateral for a home loan.
Loan comparison is a service that makes it easier for the borrower to find the best loan. Comparison also helps to save costs.
Combining loans means that several smaller loans will be repaid and replaced by one larger loan. Usually, this procedure will save you both on loan costs, interest rates and a smaller monthly payment.
For overdraft or limit credit, see Overdraft facility
Additional collateral is the collateral required for granting a mortgage, eg deposit, loan insurance, personal guarantee.
Credit See Consumer Credit
It is a legal obligation of the bank to carry out a creditworthiness assessment every time before granting a loan. The result of the assessment indicates the probability that the customer will be able to meet its loan obligations to the bank. The estimate is based on the application information requested from the customer, the bank’s own information on the customer, and external customer records as permitted by law. Generally, adding a co-applicant / co-applicant will improve your credit rating, improve your chances of getting a loan, and lower your loan price.