If the income is not for certain purchases such as a new TV set, then consumer loans come into play. They are already offered in electronics stores and when buying furniture. However, it is worth comparing the offers with one another in advance.
Every consumer loan is subject to different conditions
Many providers advertise with 0% financing. This should also be checked carefully. Still other providers of such consumer loans, such as furniture stores, use them to obtain additional costs through high interest rates. The banks also offer their customers various consumer loans.
A comparison should then be used in any case, since, for example, the house bank can offer its customers better conditions than another bank. A variable sum can also be negotiated at the bank.
This means that a higher amount can be granted in the form of a loan than the television costs, for example. So the borrower has the rest of the money at his disposal. When financing, for example, from an electronics store, only the sum of the respective device is financed. The bank transfers the money directly to the company. The customer himself does not come into contact with the money.
The length of the term is determined by the customer in both cases. He pays the monthly rate. When financing through a company, the customer receives no individual advice compared to advice in the bank.
The consumer loan is repaid monthly at a fixed interest rate. The term can be variable. Compared to other loans, the consumer loan can be triggered in advance. However, additional costs may arise depending on the bank. Many companies also offer residual debt insurance. This occurs, for example, in the event of unemployment. However, it is associated with additional costs.
Consumer credit is subject to certain conditions at all banks or companies
So the borrower must be of legal age and have a positive Credit Bureau. At the same time, information on salary and employer must be provided. With regard to this point, consumer loans do not differ from other loans.
All in all, it is worth comparing the offers with one another before taking out a consumer loan in order to negotiate the best conditions for your own needs. Many loans can have unforeseeable costs. It is therefore worthwhile to take advice in advance.