Information about loans

What types of loans are there?

Quick loans are loans for a small amount of about 100 to 1000 euros, which can be obtained very quickly, and they do not require collateral or guarantees. They are usually designed for a period of 1 to 3 months. Fast loans often have high annual interest rates, and, therefore, these are very expensive loans that should be avoided or repaid very quickly. read more

How much money can I borrow?

If you look at loans in general, there is no upper limit on the amount that you can borrow. This largely depends on your credit rating. If you have a bad credit rating, it is likely that the lender will not allow you to borrow a large amount. On consumer loans, you can borrow up to 10,000 euros. However, this is deeply individual, and in many cases it will be possible to take much less. read more

What is the cost of the loan?

You pay off the loan with interest, and this is what lenders earn money on. The interest payment costs are calculated at the nominal interest rate. In addition to the interest, in the vast majority, you also need to pay an institution fee, as well as a service fee. In addition, other fees may apply in special cases. Some lenders charge an additional fee if you delay paying off the loan. read more

What is the APR?

The annual percentage rate (APR) or effective annual interest rate covers the concept of annual expenses as a percentage and consists of commissions, fees for the institution, any monthly payments, as well as interest on the loan. Thus, the APR shows the cost of the loan per year. If two loans have the same annual interest rate, it is always better to have an annual interest rate that consists mainly of interest than the one that consists of the largest number of commissions, since the interest is deducted from the amount of your tax. read more

How to choose the best loan?

To do this, it is necessary to make a small analysis of loan offers and pay attention to some factors. The cost of a loan is by far the most important factor to pay attention to. Many people make the mistake of focusing only on the nominal interest rate of the loan. However, the nominal interest rate does not include any loan costs, except for the interest rate and the bank’s profit, it does not show the total cost of the loan. read more

How to consolidate loans?

Consolidation of loans (refinancing) means paying off old debts, such as consumer loans, with a new loan. Refinancing is useful if the total cost of a new loan is less than the total cost of old loans. The purpose of combining loans is to avoid unnecessary expenses in several places by paying off the loan to only one lender. Combining loans gives savings on loan costs, you save on interest rates, on billing fees, it is easier to keep track of finances, you pay only one loan payment. read more