Installment loans in Austria: what role does special repayment play?
Installment loans are granted in Austria, as well as in many other European countries, mainly via the internet. Credit calculators usually play an essential role. Anyone who is interested in an installment loan, in many cases uses a loan calculator to get a first look at the terms. Depending on the use of the loans, there are some loan offers for this project, as well as various usable installment loans. However, before a loan is taken, it should be carefully assessed what the financial position is and what installments can be paid each month to pay off a loan.
The best banks and providers in Austria can be found here:
|from 3,000 euros
||from 5,000 euros
|up to 50,000 euros
||up to 50,000 euros
For loans up to 600 Euro we recommend Cashper and up to 1,500 Euro Cashpresso.
How do I determine my financial capacity for an installment loan?
Who wants to take a installment loan, should know exactly how much money he can take for it each month in the hand. Loan repayment is underestimated by most people and many do not even know how much money is available to pay for a loan each month. In practice, however, it is quite easy to determine what the maximum sum that can be spent on a loan on a monthly basis is. If this has been defined accordingly, it can be precisely calculated which loan amount can be repaid, for example, over a term of 10 or even 15 years.
Monthly expenses and revenues
For example, monthly expenses include rent, electricity, gas / oil and water. Anyone who has constant spending here can simply take the monthly value for the warm rent and list it in an invoice. Added to this are the costs for eg a car as well as the costs for the household. Clothing, food and insurance should also be included in their cost with a monthly value.
Here is an overview of all the possible expenses incurred by most households who want to take out a loan:
- rental fee
- Car (fuel, tires, repairs, insurance )
- food and beverages
- household products
- Internet and telephone
Further additional costs and expenses
The cost of the holiday is very much forgotten by most people when they decide to take out a loan. It should be remembered that life is not just about getting a loan repaid, but also about having a vacation to relax, for example. Depending on the number of people in the household, a sum of 500 to 2,000 euros per year should be planned for a long and relaxing holiday.
Very many costs can be recorded in the lineup without any problems on a monthly basis, since they are also billed monthly in many cases. Anyone who takes his monthly net income and subtracts from it the sum of the averaged monthly expenses, sees exactly what sum he has, for example, for the repayment of a loan. It should be noted, of course, that it must be taken into account that a certain buffer should be taken into account.
Which credit period is recommended and how can it be shortened by a special repayment?
As regards the repayment term, this should be determined according to the object to be financed or the service to be financed. If you want to use your installment loan to finance a car that you use over a period of 5 years, you should not take out a loan with a term of 8 years. The period of use of the product should always be significantly longer than is the case with the term of the loan. It should be noted in principle that the term can be shortened by special repayments. How this works is very easy to describe:
A borrower receives a loan amount X and pays back in monthly installments. On the one hand, the monthly installment is made up of a portion that repays the loan and, on the other, the interest rate that is charged on the provision of the loan is also covered by the monthly installment. Basically, this monthly constant burden ensures that the loan is paid off over the term. If you want to accelerate this process, you can make so-called special repayments depending on the loan project. These are suitable for paying off a loan with additional sums much faster.
Conditions for special repayment
Special repayments can, by simply transferring the selected sum to the credit account, make it possible to pay it off much more quickly. In principle, however, there are different conditions that have to be taken into account for special repayments. Depending on the loan project, it is possible, for example, that large sums of money can be paid back without any problems. In the case of mortgage loans, the special repayments are usually limited in their amount, so that only a certain sum in the year can be repaid in addition to the usual installments.
Those who opt for a normal installment loan, this can easily shorten this by a special repayment, or pay off much faster. Often there is no limit on the amount of the special repayment, so that in the long term corresponding special repayments can pay off the loan very quickly. In part, it is possible that the still open loan amount can be paid off in one fell swoop from now on the same. Costs do not arise for the special repayment usually.
Special case of construction financing – how are special repayments regulated here?
Anyone who has taken up mortgage lending, for example, a sum in the amount of 200,000 € and repay the loan with monthly installments, will also come up with the idea here, to want to perform a so-called special repayment. As a rule, this is also possible, but the amount of the special repayment usually depends on the amount of the borrowed credit.
In many cases, a sum of up to 5% of the original loan amount may be repaid once a year as part of the special repayment. This means that with a fictitious loan amount of 200,000 euros each year in addition to the fixed installments, a sum of 10,000 euros can be paid. This should ensure that many loans can be cleared much faster than would be the case without special repayment. In most cases, the entire loan can be cleared much faster with the help of special repayments.
The bank specifies to the borrower exactly when he can effect the special repayment. As a rule, the repayment can be submitted every month. The relevant cut-off date is usually specified in the loan terms up to which the special repayment transfer must be received so that it can be taken into account in the total loan. Anyone researching over the Internet will quickly realize that special repayments can be made very easily and some banks even offer higher special repayments.
Confirmation by the bank
If the special repayment has been successfully completed and the corresponding amount has been transferred, the bank will confirm this in writing to the borrower. Many of the current loans can be calculated and completed over the internet. For a loan, therefore, the borrowers have a corresponding digital mailbox. Here is usually a confirmation filed in the form of a .pdf file, which confirms the receipt of special repayment. At the same time, customers can see in the login area about their credit, how the special repayment made affects the entire loan and when it is completely eroded.
- Special repayments help with early loan repayment
- For real estate usually up to 5% repayment per year are offered
- Small loans can usually be replaced “in one fell swoop”
What advantages does a good loan calculator offer in financing planning?
If you have a good loan calculator and would like to plan your financing, you will also be able to consider so-called special repayments here. This means that the loan calculator can take into account the amount of monthly installments as well as the amount of the annual special repayment. With the help of these two parameters can be specified exactly when the complete loan is paid off and how long the eradication thus lasts.
Another advantage is that the loan calculator can help in financing planning to determine which maximum loan amount can be borrowed. Depending on how high the monthly sum that can be spent on the loan, the loan amount that can be taken up to a maximum and can also be paid within the term differs.
What happens if I can not pay the loan within the term?
Should it happen that the loan can not be paid within the fixed interest period or the term, this can lead to a follow-up financing being required. Of course, this depends on the current conditions on the market. This means that shortly before the end of the term of the loan should be contacted with the bank in order to determine exactly what a follow-up financing looks like, or at what conditions this would be possible.
If your loan expires over the coming months in terms of fixed interest rates, borrowers need not worry about how to find attractive follow-up financing. In practice, this means that due to the currently very low base rate, financing can be concluded on the whole at very attractive conditions. Loans with an annual interest rate of less than 5% pa can easily be determined via the internet using credit calculators. If the loan is a real estate financing , it is quite possible that corresponding conditions can be determined online here. Often interest rates of less than 2% per annum are offered, but this is also dependent on the amount of equity. If the equity capital is high enough, it can also be the case that the residual debt can be repaid in one go and no follow-up financing must be completed.
What money goes into the special repayment on a loan?
In many cases, there are special payments that are used to pay off a loan by special repayment faster. Bonus payments, holiday pay and the Christmas bonus are often used to complete mortgage lending much faster, or to pay off a installment loan faster.