With the many offers of the banks, some consumers lack an overview. There are comparison computers on the Internet, but to do that you first have to know what you are looking for. In order to find the right loan, various filters would have to be used. An important feature is a loan with no processing costs. According to the latest case law, this should actually be common practice. But not all banks have already implemented the new law. The legislature has decided that in future only a loan without processing costs can be granted.
The waiver as advertising
Even before the new legal situation, many banks waived the processing costs. But it was not always a particularly cheap loan. In many cases, processing fees were hidden in the annual percentage rate. As a result, these loans were ultimately more expensive than if processing costs had been calculated. Therefore, when comparing a loan without processing costs, you should also pay attention to the amount of interest. These differ from bank to bank.
The additional services
Not only is a loan without processing costs interesting, but the additional services also play an important role. For example, some banks offer the option of paying the first installment later. A break in payment between 59 and 89 days is quite normal. Free repayment options are also advantageous for the customer.
Unfortunately, there are still banks that require early repayment penalties in the event of early loan repayment. Depending on the amount, early loan repayment is not worth it at all. The banks do this in order to recoup the lost interest in another way. There is nothing the legislator can do about this, because the banks have a free hand in setting the effective annual interest rates.
Additional services not necessary
A loan can also have other pitfalls. In many cases, the conclusion of residual debt insurance is made a condition. This makes the loan more expensive. The conclusion of such is only worthwhile for higher loan amounts. For example, real estate loans should be secured with residual debt insurance. For smaller amounts of money, the conclusion is actually superfluous. If the bank makes a loan commitment dependent on it, you should look for another bank.