Sometimes we get into situations where more funds are needed than originally planned. This can occur, for example, when offspring in the family announces and therefore the previous living space is too small or if the car has a technical defect in the workshop.
For this case of cases, financial institutions offer corresponding purchase loans, which also as
- Installment loans
- Consumer loans or
- auto loans
offered to the consumer.
The Acquisition Loan is a loan amount that was previously contracted between a private individual and the financial institution. The borrower agrees to repay the loan to the lender within a stipulated term at fixed monthly installments. The monthly installments include both interest and repayment. If processing fees have been incurred for the loan, these are also included in the monthly installments. Acquisition loans are usually issued in amounts ranging from one thousand to seventy-five thousand euros from the financial institutions. The repayment period may be agreed between the contracting parties up to eighty-four months.
Processing of acquisition loans
Acquisition loans are offered by most financial institutions as a blank loan. The borrower does not have to provide any collateral for this loan option. By default, however, a salary assignment to the financial institution is agreed in the event of non-payment of monthly installments. When applying for a purchase loan, the presentation of the last three proofs of pay and the identity card are sufficient. If the creditworthiness of the borrower is insufficient, the financial institution may require an additional guarantee to secure the loan. The interest on a purchase loan is well below the interest on the loan. Therefore, often a purchase loan is taken to trigger an existing discretionary credit.
When making use of an acquisition loan, the comparison between branch banks and direct banks may be worthwhile, since the interest here can often vary considerably. If the credit agreement between the financial institution and the borrower comes about, then this is also the data of Schufa registered. There, the loan amount and the term of the loan are noted accordingly.
Termination of the acquisition loan by termination
Acquisition loans that have been contractually agreed after 11.06.2010, the borrowers can withdraw at any time and without any period. However, the financial institution may charge the prepayment penalty in this case. The amount of this prepayment penalty is defined by law.
The financial institution can only terminate the borrower’s loan if it is partially or completely in arrears with two installments, if there are any installment arrears and the notice of termination has been announced in a third reminder with a deadline of two weeks.