5 key reasons why a loan is currently particularly useful
Those who need a loan often have a problem in determining the ideal time when the loan should be taken out. If you feel the same way, this post would like to help you. We present five key reasons why it is currently particularly useful to take out a loan.
The current low interest rate phase could end slowly
Interest rates on almost all types of credit have been falling for years and have now reached the lowest possible level. In fact, there are some signs that the current low interest rate phase could end at least in the coming year. The US Federal Reserve has announced that it will raise the key interest rate again.
The Euroshare Savings Bank usually follows this example with a delay of one to two years. The base rate determines how much interest the banks can borrow money from. The more expensive this is, the higher the lending rates will be for consumers because the financial institutions will have to refinance.
There are also some banks in the euro area with financial problems that rely on generating new income. Interest on loans could also become an issue in this regard.
The ancillary conditions are currently very good
At the moment, not only are interest rates very low, but the banks also make the additional conditions for a loan very accommodating. This applies, for example, to possible special repayments. In addition, loans are also granted over the long term with stable interest rates. You can achieve medium-term planning certainty, especially in the area of real estate financing.
Follow-up financing is very cheap
At the moment, you can get the appropriate loans on excellent terms for every loan that requires follow-up financing. In the real estate sector, for example, the surcharges for forward loans are currently 0.02 to 0.04 percent per month that you take on follow-up financing before the current fixed interest period expires. This is also very good compared to the past few years.
Debt restructuring is easy
In addition to follow-up financing, debt restructuring is currently very cheap. Many banks are urgently looking for credit customers and therefore not only set interest rates at a low level, but are even willing to pay penalties for you, which you have to pay due to the early repayment of a loan from other banks – for example, through interest credits for a few months, You can find out whether a debt rescheduling is worthwhile for you with a financial check.
Loans are also given in riskier cases
Many banks have also reduced their borrower requirements in the current low interest rate phase. Even if your credit rating is not completely convincing, you can get a loan. This mainly affects small loans, but also applies to other types of financing.
Possible risks of borrowing in the current low interest rate phase
Banks attach great importance to retaining you in the long term. In many financial institutions, early repayment penalties for redeeming loans are therefore one percent, which is legally stipulated as the maximum amount. The change should be difficult for you.
It is also possible that interest rates will continue to fall and you would now take a slightly more expensive loan. However, this is not very likely, and there is so little scope downwards that this risk is very manageable.
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