These framework conditions are primarily conditions that affect the total cost of a loan. These include the following factors:

As a rule, these loan terms differ significantly from bank to bank. Nevertheless, these factors are subject to various legal regulations. For example, banks are obliged to state at least the borrowing rate, the net loan amount as well as the annual percentage rate of charge for promotional offers (§ 6a para. 1 PAngV). It must also be transparent, which costs and fees flow into the annual percentage rate.

In addition, although the German Civil Code (BGB) does not specify a permissible amount for interest, it has been determined that interest-bearing usury is void. Thus, if the burden on the borrower and the lender’s performance are conspicuously disproportionate – and in favor of the lender – it is a usury-like and therefore immoral business.

Credit comparison shows favorable conditions


Especially in terms of interest rates, it makes sense to make a comparison. As a result, you will not only find the best possible conditions but also recognize when a loan is clearly too expensive.

Determination of loan conditions

Determination of loan conditions

The loan conditions are usually determined by the individual banks. As credit institutions incorporate different factors into their calculations differently, conditions may differ greatly. In addition, not every bank charges account maintenance fees or other additional costs, which further influences the differences.

Amount of the conditions

Amount of the conditions

To determine the number of loan terms, there are several factors to consider:

  • The creditworthiness of the applicant
    The creditworthiness of the applicant is also an important aspect. The better the credit rating is rated, the cheaper the loan will be. On the other hand, customers with a bad credit rating, possibly resulting from negative SCHUFA entries, must expect higher interest rates.
  • running time
    Short-term loans are usually rewarded with lower interest rates: when a loan is granted for a two-year term, the risk to the bank is much smaller than the borrower can not pay his installments. However, if a loan runs for over ten years or more, it can be expensive for the borrower.
  • fees
    Usually, account and processing fees are charged. Since these are included in the annual percentage rate, the credit can be more expensive. In a conventional installment loan, the fees are usually one to three percent of the total. A building loan often sets a flat rate. In addition, for larger loans, there are often provisioning fees, which have to be paid additionally.

For most banks, however, the fees are negotiable, since neither their design nor their amount is legally defined. Some banks also engage in negotiations on interest rates. Often there are also actions on the internet where credit institutions do not pay fees or other incidental costs.

A renegotiation of the terms should be made in any case, if the fixed interest period expires soon. Even if market rates are at a relatively low level, rescheduling should be considered.

useful information

Nowadays, potential borrowers find countless loan offers on the Internet – so it’s hard to keep track and quickly find a suitable, serious offer. That’s why a credit comparison is always worthwhile. So you have the opportunity to compare the offers of various credit institutions and to look for the appropriate loan- financial reports.

You can recognize a reputable comparison calculator by listing a large number of banks and offering the opportunity to individually adjust all important loan conditions. In addition, a good loan calculator is always free and can be used without obligation. Pay attention to these aspects before starting the comparison.

For a comparison of the loan conditions succeed, you should also pay attention to the following points in the individual conditions:

  1. Effective and nominal interest rate
    Make sure that the effective interest rate is shown next to the nominal interest rate. The former is the pure interest rate, the latter, however, includes all ancillary costs.
    Nevertheless, take the nominal interest rate into account and use the market interest rate as a guide. It is advisable to find a loan, the interest rate of which is not too much above market level.
  2. unscheduled
    Check whether you can arrange special repayments with the respective bank. This gives you the opportunity to repay a higher amount in the meantime, for example, if you receive money through an inheritance or life insurance.
  3. processing fees
    In any case, make sure that the processing fees are not too high. Here, the comparison is worthwhile, because you can weigh the fees of different banks at a glance against each other.
  4. Start and amount of repayment installments
    In particular, the initial repayment should be as high as possible, so that you can pay off the loan as quickly as possible – but this also applies to the current repayment installments. But keep in mind that the repayment rate is a monthly charge: do not apply it higher than your income allows.
  5. Amount of commitment interest
    Deployment rates are not required by every bank and not every loan. However, adding them to the total cost can be expensive. So check which banks charge interest and what the interest rate is.
  6. running time
    A well-chosen term can provide a relatively cheap loan. The maturity should not be too short, especially for large sums – otherwise, there is a risk that interest rates will rise during this period, making subsequent financing more expensive. However, it should not be too long: the longer the term, the higher the risk for the bank that you may not be able to pay your installments. Accordingly, the interest rates are also adjusted upwards here. For classic installment loans, therefore, a time between two and five years is usually chosen. Finally, make sure that you can carry the monthly burden over a longer period of time.
  7. Possible discount
    A discount is a discount from the face value. The loan amount is not paid in full – the money retained by the bank acts in principle as a prepaid interest. As a result, the interest costs and thus the credit can be made a little cheaper.
    However, many experts recommend this procedure only if the borrower can deduct these costs from the tax in the payout year. In the area of mortgage lending, however, this is only possible if the property is not used by itself but rented or leased.

Loan conditions: direct banks vs. branch banks

Loan conditions: direct banks vs. branch banks


Borrowers always have a choice between direct banks and branch banks when applying for a loan – the difference is that while borrowers at branches in a local branch apply for a loan and deal with a contact person, this process is carried out completely online at direct banks.

However, this is also the reason why the loan terms with direct banks are usually much cheaper than with branch banks: they apply for the loan on the Internet. Since the application is received by the direct bank within a very short time, you will receive a comparatively quick acceptance or refusal. This approach saves both manpower and administration costs. This, in turn, ensures that low to no processing fees is charged. This reduces the APR and thus the total cost of the loan.

The FinanceScout24 Best Rate Guarantee

The FinanceScout24 Best Rate Guarantee

The loan comparison on is an offer of FFG FINANZCHECK Finanzportale GmbH (hereinafter referred to as FINANZCHECK). Should you actually receive a lower effective annual interest rate from another installer via FINANZCHECK, FINANZCHECK will reimburse you the interest rate differential, but not more than EUR 750.

  • The offer of a competing contract must be binding and the details of the credit applicant / s as well as the contractually defined services (eg loan amount, term) must be identical to the one we have arranged and disbursed.
  • The competing contract offer must be from the same bank as the loan brokered and disbursed by us.
  • The competing offer was made no later than two weeks after the conclusion of the loan we brokered.
  • Dealer, manufacturer and special conditions, as well as mortgage loans, are excluded from the guarantee.
  • The best interest guarantee applies to loan amounts of € 1,000 – € 50,000 and a term of 12 – 84 months.
  • The loan brokered by us will not be revoked by you within the contractual withdrawal period.

If you have been offered a lower rate of interest outside of the FINANZCHECK credit comparison and the above conditions are met, then please send a bank statement showing the payment of the first monthly installment of the loan we have brokered together with a full copy of the competitive offer to the address below. Please note that the documents must be received by us no later than four weeks after the expiry of the revocation period (or if the first installment has not been debited to date, at the latest four weeks after deduction of the first installment) of the loan arranged by us. We will review your records and contact you as soon as possible. Please do not forget to include your bank details so that we can pay you the interest difference.

The forward loan

A forward loan is a kind of annuity loan, which is usually used for real estate financing. In this case, the borrower is paid the loan amount only after a specified lead time. During this lead time, neither commitment nor loan interest will be paid.

In most cases, this form of a loan will be used for follow-up financing – this way the borrower can secure a low-interest rate on his loan. Although the borrower has to pay an interest premium, this is generally comparatively low. In return, he receives a fixed interest period at the lowest possible interest rate. So if you observe the market interest, you can use the conditions for the forward loan in your favor.