An on-demand loan is a loan granted by the banks for a certain period of time. The customer can have the complete sum or partial amounts at any time. Interest must be paid on the amount raised. But these are lower than the interest that accrues when using the credit line.
An on-call loan can be used for any purpose. In many cases, the funds are invested in real estate. In new or conversions, the craftsmen’s costs are often required in advance. Call-off loans can also be used to purchase consumer goods. Because lower interest rates are charged here, the use of the call loan is much cheaper than the use of the much expensive Dispos.
It even makes sense to balance the account balance on the checking account with a call-off loan. Usual for a framework loan are sums between 2,500 euros and 20,000 euros.
The credit line is not linked to the checking account. The customer therefore has the opportunity to apply to any other bank. In contrast to the Dispo, the call-off loan must be applied for. As a rule, the disposition is tacitly granted. If the call loan is approved, the customer can immediately dispose of the money.
The bank does not ask for what purpose the money is used. There is no term for this loan. If the money is not needed, the call-off loan can also remain unused. This makes the loan an ideal emergency reserve.
Interest and repayment
The interest is calculated on the amount borrowed at the end of a month and added to the loan amount. The loan is repaid in predetermined monthly installments. Special repayments in installments or as a total amount can be made at any time.
How high are the fees?
Since the call loans often come from direct banks from the Internet, there are no fees. With such a loan, the direct banks want to offer new customers. There are in most cases neither closing fees nor account maintenance fees.
How is a call-off loan applied for?
First, the prospect should be aware of the height. It is best not to apply for more than is actually needed. When choosing the bank, the annual percentage rates should be considered. Who has the cheapest offer, receives the surcharge. If the best bank has been found, the call credit can be requested directly online.
The bank checks the creditworthiness of the customer at the credit bureau and the monthly income of the loan seeker before making a commitment. The customer must submit appropriate evidence through payroll. Another requirement for obtaining such a loan is that the customer is of legal age.
Seek self-examination from the credit bureau
So that it does not come to the loan application to a nasty surprise, the loan seekers should seek self-information from the credit bureau. That’s free. From time to time, existing errors can ruin a loan. Most of the time, this is only when applying for a loan and the customer then wonders about a loan rejection.
The call loan can be used for any purpose. The lending bank does not require proof of use. This loan is much cheaper than the overdraft on the checking account. Credit sums of up to 20,000 euros are available. The on-demand credit does not necessarily have to be requested from the house bank. Rather, the customer is free to look around the Internet for a suitable bank. As a rule, the direct bank offers better annual interest rates.
There are no closing fees or account maintenance fees at the direct banks. The on-demand loan is repaid in monthly installments. There is no fixed route. Special repayments as a partial or total amount are possible at any time. The prerequisite for obtaining such a loan is a good credit rating and a regular income.