INSTALLMENT INTEREST - THESE OPTIONS ARE AVAILABLE
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THE POSSIBLE VARIANTS AT A GLANCE
The conditions for installment payments vary depending on the loan.
Installment interest for bank loan
1. INSTALLMENT INTEREST FOR A CLASSIC BANK LOAN
Handelsblatt offers a practical calculator that easily calculates the interest on your installments. However, you first have to enter a few details - for example, your repayment type:
Annuity repayment: In this case, the interest portion decreases as the term progresses - the repayment portion, on the other hand, increases. The installment always remains the same and is calculated monthly on the new remaining amount, which is why interest rates fall.
Final repayment: Here, only the interest portion is paid during the term - the repayment of the loan amount itself is due in one go at the end. If a project is to be rented out, this option makes sense as the rental income can be used to repay the loan at the end.
Installment repayment: Here, the amount of the installment gradually decreasesWhile the monthly installment remains the same over the entire term with annuity repayment, the installment gradually decreases with installment repayment. The interest portion is gradually reduced due to the decreasing residual amount, but the repayment portion does not change in contrast to annuity repayment.
The computer needs this information:
Payment date
Loan amount
Debit interest
Debit interest commitment
You can simply calculate the interest according to the installment amount and also include changes or special payments.
Many banks also offer you a loan with deferred installment payments. During this time, only the interest is payable to the bank - just ask your bank advisor.
2. INSTALLMENT INTEREST FOR A PRIVATE LOAN
With platforms such as auxmoney or giromatch, you are referred to private lenders or banks that often have less strict requirements. This means you can often get a loan even as a self-employed person with irregular income or a medium credit rating.
The interest rates for a private loan are usually higher - but you can also calculate your installment interest here using the Handelsblatt calculator. There is often also a commission charged by the platform. Check carefully in advance whether this is a one-off or ongoing payment.
INSTALLMENT INTEREST FOR A PAWN LOAN
A pawn loan can also be used as an installment loan. Although the term is always only 30-90 days, you can reduce the deposit amount when extending the loan and thus repay it in parts. However, pawn loans are best suited for short-term bridging.
This is how it works:
You have collateral that you can deposit in a pawnshop as security for a loan.
Here youcan find out online how much money you can borrow for your item and how much interest and fees will be charged.
Pawn shops such as CASHY will hand them over on site in one of their stores or by mail order.
You will receive your money immediately in cash on site, in any case a transfer via PayPal or to your bank account is possible.
You can see which fees apply in your account. You can either reduce your pawn loan when you extend it, which will of course also reduce the interest afterwards - or just pay the interest and fees and postpone repayment for another 30 days.
All information without guarantee according to research from August 2022. Errors and omissions excepted.