Whether car, electrical appliances or home ownership – for more and more people in Germany, such investments can only be financed with a loan. For us as a financial advisor, the individual advice is in the foreground, so that the best credit conditions are waiting under your personal circumstances. From the experience it is known that offers from banks on the Internet tend to be cheaper than at the same local branch store. This is currently confirmed by a study by the German Institute for Service Quality (DISQ) and makes it much easier for consumers to find a cheap loan.
Great deviations in the terms of credit given
The study was carried out by DISQ on behalf of the news magazine n-tv in the summer of 2016. The result of the evaluation initially shows how large the range of lending rates generally falls between the 15 credit institutions tested. Between 4.12 and 8.99% APR were used for a loan amount of EUR 5,000 with common maturity.
The deviations for the degree online or in the local branch are more noticeable. According to the study, Offline had to expect an average effective interest rate of 6.67% pa, with a conclusion over the Internet with 5.36%. What turns out to be a marginal difference with an amount of 5,000 euros, with increasing amounts of credit to the much greater burden. The banks themselves justify the difference in credit terms between the higher quality of advice that can be claimed personally on the ground. However, according to analysis by the DISQ, this quality was only rated as “satisfactory” in all 15 banks.
Reasons for more favorable conditions of online banks
Significant for the lower principal repayments on the financial statements online are the lower administrative and closing costs of the banks. As a rule, all well-known branch banks operate their offshoots on the Internet as a subsidiary or independent company. As a result of these separate structures, banks have a leaner administration on the Internet, and the lower cost burden can be passed on to customers in the form of lower lending rates.
Completely on advice does not have to be waived with a conclusion in the InterNet. Each financial institution has a counseling service by phone or e-mail. In addition, almost all vendors have extensive tutorials on how credit lending via the Internet works. Those interested in a loan online will not feel compelled to reach a conclusion, which can happen quickly in a personal conversation in the local branch. According to the study, it was every tenth customer who saw the intention of a quick conclusion of the contract with the respective bank employee after the conversation in a branch bank.
In addition to the favorable interest rates, there are other conditions that speak for a loan on the Internet. Probably the most important example of this is the residual debt insurance. This is suggested by branch banks to almost all customers to have taken precautions in cases of unemployment or death of the borrower. Rarely is looked at the individual financial situation, which may make such a hedge may not even necessary. Here customers enjoy greater freedom at online banks to opt for or against the inclusion of a residual debt insurance. Finally, the insurance premiums create an additional burden that at worst neutralizes good lending rates.
Comparison and advice continue to be indispensable
The current study by n-tv and the DISQ shows that an analysis of the current market situation is urgently needed before a loan is concluded. The above figures should not obscure the fact that there are still good offers for traditional branch banks. This usually only shows up after soliciting personal offers, into which the creditworthiness of the applicant flows.
We as specialists in financial consulting are able to make inquiries on loans at many banks on your behalf. Stress-free and without revealing too much about yourself, you get a sound comparison and a really good credit . We would be pleased to advise you in advance about the advantages of a loan online and what alternative financing options are available for you.