Many consumers want credit in small installments. Because the small installments ensure that the repayment does not burden the monthly budget too much. However, small installments not only bring benefits.
Why small rates are so interesting
If you are looking for a loan, you are in a tight financial situation. Planned purchases can only take place if fresh money is made available with the help of the loan.
Since a loan always involves financial restrictions, many consumers are interested in a loan in small installments. The smaller the monthly installments are. The more money remains available for other expenses.
As a rule, the search is always for financing, which involves little effort and limits life as little as possible. Most banks are happy to grant a loan in small installments. On the one hand, this reduces the risk of default on repayment. On the other hand, more interest can be taken. Because these are known to be paid monthly.
Credit in small installments – search and recording
A loan in small installments can be found at every bank. How small the installments are in the end depends on the loan amount and the chosen term. In addition, everyone has a different idea of the term “small installments”. For one consumer, 200 € are a small rate – for the other consumer, the 200 € represent a huge burden. Ultimately, therefore, decide various factors, as the desired credit finally looks.
In order to get a first overview of the offer and the associated possibilities, it is worth carrying out a comparison. With our loan calculator this is done within a few minutes. He shows worthwhile loan offers and names their details.
The recording can then be carried out conveniently via the Internet. It should be noted that not only the loan application must be completed for the use of the loan. This must be added on top of various documents. Which these are, can be read at the credit calculator under the item “Product details”.
Advantages of a loan in small installments
A loan in small installments brings various advantages. As already mentioned, the small installments allow a carefree repayment. Despite credit, the financial possibilities are distributed over the month not too limited. The regular life can be continued as you were used to.
Banks are also benefiting from the small installments. The small installments reduce the default risk for the bank. It must therefore be less afraid that the borrower can no longer serve the rates. After all, there can be complications during repayment.
For example, revenues may fall because the borrower becomes unemployed or dependent on sickness pay due to a long illness. Small rates can then always serve better than loans in which a large rate has been agreed.
Disadvantages of a loan in small installments
Where there are advantages, the disadvantages are usually never far. So it is with the credit, which is taken up with small installments. The disadvantage is primarily the fact that extends the duration of the loan through the small installments.
As a result, more interest must be paid, which makes the loan in total more expensive. As a prospective loan buyer, one should therefore consider very carefully how small the installments really have to be. Because in the worst case, several thousand euros would have to be taken in hand, because small installments were preferred.