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The interest rate plays an important role in determining the loan, but it is also possible to negotiate an interest-free loan. The amount of interest, that is, the interest rate, is determined by the lender and the borrower. Moreover, it often happens that certain payments are negotiated in addition to interest, such as interest on a liability.
On our aggregator, catalogue, you can compare loan offers from several banks and credit institutions without any obligations. Choosing a lender at AllCredits does not require any costs, and you do not bear any obligations to us.
In order for your loan application to be successful, you must meet several requirements. These terms are similar for most lenders in our directory and include the following:
• Age of majority: the borrower must be 18 years of age or older to apply for a loan. Only from this age do citizens in many countries of the world become fully capable and can conclude legal contracts.
• Primary residence and bank details must correspond to the country in which you are going to take out the loan. If you are applying for a loan in Denmark, Latvia or Germany, the lending institutions require that the applicant also have a primary residence in the respective country. It’s the same with your bank account.
• No probationary period: as an employee, you must have worked for your current employer for at least six months. This condition makes sense, since at this stage the terms of work for this employer are reduced, if an open-ended work contract is not signed, which means a higher risk for the bank.
• Open-ended employment relationship: If you work as an employee, open-ended employment relationships are often a prerequisite for successful lending. If your employment contract is limited in time, its duration must at least match the term of the loan for which you are applying.
• Proof of income: if it is a consumer loan that is provided, for example, to finance consumption, credit institutions usually ask for proof of income. This proves that you have sufficient income to repay the loan on time. In addition, some credit banks also require full account statements to check the relationship between incoming and outgoing payments and compare them with the information you provided. What proof of wages is required depends on the trade secret. As an employee, you usually have to file the last two or three pay slips, and as a retiree, the last retirement notices. If you work as a freelancer, you don’t have a fixed monthly salary. Hence, evidence must support income over the past two to three years through business assessments such as financial statements and balance sheets. However, some lending institutions do not accept self-employed or freelancers as borrowers because they do not have a reliable and regular income. In addition, this professional group depends on the payment behaviour of its clients – if a default occurs here, the self-employed or freelancer could face financial difficulties.
• You must act on your own behalf by confirming that you are using the loan for yourself and that you are responsible for the costs of the borrowing. Thus, the bank guarantees that you do not take out a loan for a third party that will not be able to return the money in accordance with the agreement.
• No negative credit records: Before banks make a loan, they refer to these documents, which store data about your payment behavior and your level of debt. Based on the registered information, your credit rating is calculated. The bank uses this value to assess whether you can repay the loan. Entries that negatively affect the interest rate are, for example, the default payment details.
Interest-free loan
Loans are free and without obligations – these are usually small amounts.
Our catalogue contains credit companies that, without risk for borrowers, can choose an interest-free loan for you. With each of them, you can sign the best offer for yourself. An interest-free loan and no commission is usually provided to those people who take out a loan for the first time and do not have a credit history. This type of lending can be viewed as a promotion.
There may be cases of repeated receipt of an interest-free loan if the client has a good credit history. In this case, the borrower only needs to send an SMS message, and in this case the desired amount will be transferred to your account within a few minutes.
Credit companies that provide interest-free loans can be found on the website Interest-free loans.
Fast loans
Whether it is quick loan, instant loan or flash loan – they basically describe that all these terms have the same type of loan: the loan with especially fast repayment. There is no clear definition of what a quick loan is. Generally speaking, a quick loan is a loan that is processed and repaid especially quickly. The high speed from applying for a loan to receiving money into your account is mainly achieved due to the fact that borrowers perform all important steps online, and the information is processed by the bank automatically.
Regardless of what you want to call this type of lending, with a quick receipt of the desired amount, you will be safe in case of financial difficulties if you use the section “Fast loans” in our catalogue. Since, when you go to the website of a credit company, a loan application can be processed completely online, a quick loan is usually available for repayment much faster than a classic loan from a bank.
A quick loan differs from a classic loan in installments primarily in the speed of repayment. While in the case of an instalment loan, the repayment of the loan often takes weeks, with an instant loan, this process usually takes only a few days, and in some cases, the loan is issued within 24 hours. As in the case of an instalment loan, you then pay off the instant loan on a monthly basis in instalments and use the favorable terms of the credit institution from which you borrowed the money.
A term loan has long established itself along with classic lending models and is very popular.
Since an instant loan is not targeted, you can freely dispose of the loan amount taken. According to statistics collected from EU countries, 41% of customers use a loan to buy a new car. In second place are expensive consumer goods such as TVs or refrigerators (36%). 16% of all loans are requested for redecorating their home or relocation. Other reasons are weddings, trips or private investments (1% each). Thus, instant loans can be used for any purpose imaginable and fully spent on your personal needs.
Loans from the age of 18
This type of lending is designed to provide loans to young people, mainly students who have reached the age of majority. In the EU countries, adults are considered to be young people who are over 18 years of age. Whether students are eligible for a loan depends on whether they are young adults, vocational school students, full-time, part-time or part-time students in vocational retraining.
Getting a loan is not easy even for adult students. Banks usually provide loans only to borrowers with sufficient regular income. Students with insufficient creditworthiness can improve their chances of getting a loan with an additional applicant who earns enough to pay off the loan.
Students are more likely to get loans from specialized providers.
Loan for teenagers
When we hear the word “student,” we naturally think of young people who are still in high school. In this case, the loan cannot be obtained without further ado, since this group of people, as a rule, has not reached the age of majority. In the EU countries, to receive a loan, minors need not only the consent of either parents or legal representatives, but also the consent of the family court.
Take out a loan with your parents
It is a little easier if the parents act as guarantors or, even better, with the borrowers. Even if after completing the training, the obligations remain. Many banks are ready to provide a loan in this case. In the case of loans with an interest rate linked to lending, this also makes the loan cheaper.
Adult students
Of course, this may be the case when the student has reached the age of majority and has a permanent job and with an appropriate income. In this case, he can get a loan. Proof of income isn’t the only requirement, however: most banks also require the borrower to have a permanent employment relationship and pass a probationary period. A good credit rating, or at least no negative records, is also a frequent requirement. In most cases, adult students can get a small loan.
Loans for trainees and vocational school students
With the beginning of training, you often want to have your first own car. However, this desire is often accompanied by the need to take out a loan. Even if students have reached the age of majority, credit is crucial for them. Interns usually meet the regular income criterion. On the other hand, however, there are no guarantees to continue working after completing the training.
Loans are usually provided only depending on the student’s income and for a period not exceeding the duration of the study.
Second education
Night school students and graduates usually have a job and thus can get a loan much easier.
The question is no longer whether the candidate is a student or not – the credit check is aimed exclusively at financial aspects related to professional activities: after deducting the amounts for normal life support, is there still enough money in the checking account to pay monthly payments?
How high the rate is, of course, depends on the volume and term of the loan. With the AllCredits calculator, you can quickly check what monthly payment can be expected for how long. As long as the loan corresponds to income and there is no negative record in the credit history, almost every bank gives loans to students of evening forms of study.
Retraining Loans
However, obtaining a loan for retraining students is a little more difficult. Public funds are often the only form of income. Since scholarships cannot cover the minimum living wage, in this case, almost no bank will provide a loan without additional collateral. However, if you still have professional income in addition to retraining, you can simply compare loans. With the help of our catalogue, in the section “Loans from 18 years“, you can get individual optional offers in a large number of banks in order to check the amount of possible interest and quickly find the cheapest loan. Incidentally, this does not have a negative impact on an individual’s assessment of credit history.
Car loans
A car loan is an instalment plan with constant loan payments. The car loan is repaid within the agreed period in monthly instalments including interest. You will receive especially favourable conditions if you deposit your existing vehicle as collateral. The car loan can be used to purchase new and used cars, as well as campers and motorcycles.
To apply for a car loan, you must be legally competent and at least 18 years of age. A prerequisite is the main place of residence in the country in which you are going to take out a loan, or your employer must have the citizenship of this country. You must also have a bank account in the country where you are going to take out a car loan. You must also have a regular income that will cover your fixed expenses. Loan without fixed income is not possible.
Read more about car loans on the web page “Mortgage, car loans” on our website. You can get acquainted with credit companies in our catalogue, in the section “Car loans“. There you can also choose the desired borrower for free, and without any obligations on your part. Moreover, you can do this an unlimited number of times, and without any impact on your credit history.
Mortgages
Mortgages are now a standard form of construction finance, or home purchase. Therefore, when you buy a property, in most cases you are using this financing. A mortgage loan is a special real estate loan that is secured by a mortgage or land tax.
However, contrary to its name, mortgages are now rarely secured by mortgages. Meanwhile, mortgages have been largely replaced by mortgages, which are a much more flexible tool for the bank and for the consumer as a borrower. When talking about a mortgage loan, they usually mean a classic annuity loan: you pay the same monthly payment for the entire term, which consists of the loan repayment and the interest component. Moreover, first, the initial payment is determined, which describes the part of the repayment in the first year.
There are fees for entering the mortgage into the land register. The amount of the commission depends on the amount of the loan to be secured. The commission can range from a few hundred to a thousand EUR. However, it is difficult to say in advance what the notary costs for a mortgage will be. Advantage of a mortgage: Since it is secured in the land register, it is usually cheaper than an installment loan. In principle, it is possible to obtain several mortgages for real estate.
Read more about mortgage loans on the web page “Mortgage, car loans“, and you can choose a lender in our aggregator, on the page “Mortgage loans“. You do the selection of a borrower from us for free, and without any obligations on our part. You can also use our loan calculator to pre-assess your capabilities.
Consumer loans
Loan to individuals, which is used to finance and purchase consumer goods. The scope of a consumer loan is as varied as its name: you can use a consumer loan to buy a new washing machine, pamper yourself with a car, or finance a long-awaited trip to New York.
A consumer loan usually does not have a specific purpose, such as a loan for real estate or a car. There are no restrictions on the use of a consumer loan, provided that your family budget, the desired loan amount and your income are compatible.
In addition, consumer loans are not bureaucratic: collateral, for example through an entry in the land register, is usually only required for amounts over EUR 50,000 – for example, for a mortgage loan. Another advantage of consumer credit: for larger and more expensive purchases, you can use cash to act as a cash payer in front of the seller and, under certain circumstances, negotiate discounts. This is not possible with loans that you take through retailers, such as the instalment plan for your washing machine, because the money flows directly from the cooperating bank to the seller and does not even pass through your hands.
In principle, ordinary consumer loans are not targeted. But there are also options that are associated with a specific goal. This usually needs to be proven to the bank after the loan amount has been paid. This is the case, for example, with a car loan: here the lender wants to find out in which car you invested the money provided, and see the corresponding confirmation of the purchase. Read more about consumer loans in the article “Consumer loans“, or you can go to our directory to select a lender for obtaining a Consumer loan.
Short-term loans
A short-term loan, sometimes it is said that this is a payday loan has a maturity of 15 to 30 days. In our catalogue you can choose a lender to whom you can apply for a short-term loan of up to 3000 EUR.
Short-term loans are mainly used when unforeseen financial problems arise that cannot be solved with the help of available regular financial resources. Such a loan may be necessary, for example, if an unexpectedly high utility bill comes in or if a professionally required vehicle needs to be brought to a workshop for repair. Typically, this unexpected financial burden is also associated with a time factor, so additional financial liquidity should be available as quickly and easily as possible.
As the name implies, a short-term loan is primarily characterized by the fact that it is available quickly (if possible, on the same day), and is also used only for a short period of time. In this regard, AllCredits is probably an excellent option to quickly find a lender with the best terms for you, if, of course, refer to our “Short term loans” web page.
However, this loan often has the disadvantage that it is very expensive due to high interest rates and also has a reputation for leading to high debt due to very strict repayment rules. Mini loans are also considered short-term, as they can be used – similar to an overdraft – from very small amounts (from 50 to 100 EUR). On the other hand, offer the advantage of short lead times – generally 30-60 days, in exceptional cases as a special arrangement up to 180 days. Also, mini loans to fix financial interest rate problems can be cheaper than overdrafts. Moreover, an advantage for mini-credentials can be considered that the obligation to repay the loan amounts at the end of the term does not lead to arrears, as can happen, for example, with an overdraft.
«An overdraft occurs when money is withdrawn in excess of what is on the current account. In this situation the account is said to be “overdrawn”.» a source en.wikipedia.org/wiki/Overdraft
Long-term loans
A long-term loan in itself, of course, is interesting, since low interest rates are fixed for the entire term, and the customer has the highest possible reliability of settlements. Basically, this product is a full repayment loan that provides financing in one fell swoop. Interest rates are low even when compared to offers for 20 years. In addition, the borrower has the right to change the repayment during the term. There is also the option to pay up to ten percent annually as a special payment.
In our catalogue you can choose a credit company that issues “Long-term loans“. All services on the Allcredits portal are absolutely free, and we do not require any financial obligations from you. At the same time, we do not bear any responsibility for offers from credit organizations placed in our catalogue. AllCredits is an information portal, so we do not require you to register and you can view any offers incognito.
