0 Comments

 

If you want to apply for a loan with low installments, you can make the following rough calculation: The monthly installment will be lower the longer the repayment of the loan is planned. For a loan that is fully repaid after 12 months, the monthly installment is approximately 8.3% of the original loan amount plus a small interest component.

With a 24-month term, only one 24th of the original loan amount is repaid per month, plus an interest component. A loan with low rates always means accepting a longer term for the loan.

Spread the repayment over a longer term

Spread the repayment over a longer term

In addition to the purely mathematical advantage of a comparatively low rate, the loan with low rates has other advantages. As a borrower, you can postpone a comparatively large purchase and use the purchased product immediately. This means an immediate increase in the quality of life, for example by using a car, and then a slow payment.

In contrast to a loan with a very short term, as a borrower you do not have to limit yourself so much or stretch financially. The monthly charge is much smoother. You can also take advantage of a unique opportunity or a special offer without having to save a few months. The low-rate loan therefore also allows a certain degree of spontaneity with regard to larger purchases.

Further advantages with a long term

Further advantages with a long term

The loan with low rates and a long term also means that you can afford a lot more as a borrower. So you get a loan amount of astonishing 10,000 USD even at low monthly installments of well under 200 USD if the term is set accordingly. The loan is then repaid after 60 months, so that, for example, a new car can be financed at very favorable conditions.

Low rates with a bank or a financing partner also have the advantage that you, the borrower, have a full choice of all ranges and providers. You are not restricted by special or campaign financing and can therefore choose from all models, equipment variants and dealers.

The longer term associated with the low rates also means significantly greater planning security and predictability. As a borrower, you don’t have to reschedule or extend the loan in the middle of the repayment. Instead, you can assume complete planning security and use the fixed interest and fixed repayment agreement.

Leave a Reply

Your email address will not be published. Required fields are marked *