Meaning of the consumer loan
A consumer loan is very commonly requested and is characterized in particular by the fact that it is available to the borrower for free use and can be used not only for a major purchase or a repair, but also for a holiday or for refinancing one or more older loans. Such a consumer loan is often granted as an installment loan.
To obtain a consumer loan, the borrower must meet certain requirements, which can vary significantly between individual lenders.
Use cases for consumer loans
A consumer loan can be used to settle outstanding rent arrears or tax back payments as well as for new furnishings. No information needs to be provided to the bank about the purpose for which the loan is needed.
When buying a car, the consumer loan offers the advantage that, unlike a car loan, the car is not used as collateral and the vehicle registration document therefore remains directly with the buyer. At the same time, however, this means less security for the bank and thus a slightly higher interest rate. Another advantage is that the loan can already be paid out before the car purchase and you can appear to the seller as a cash buyer. The cash buyer discount can sometimes offset the higher interest rates. It is therefore worth comparing consumer loan offers with the cash buyer offers from car dealers.
Cash buyer discounts can also be used with an overdraft facility (disposition credit), provided the bank grants it in sufficient amount, but the interest rates are significantly higher than those of a consumer loan.
Conducting a loan comparison for consumer loans
In principle, the decision for a consumer loan should never be rushed, but only made after careful consideration. An online comparison can be very helpful in this context. It not only provides more precise information about the possible loan amounts and terms, but also about the conditions under which individual lenders are willing to grant a consumer loan.
In Germany, lending is almost always tied to a positive Schufa report and regular income. Anyone who does not meet even one of these two basic requirements will find it very difficult to find a suitable consumer loan tailored to their personal needs.
Private lenders can usually act more flexibly here than institutional lenders. However, they will never issue a blank check and require a minimum level of creditworthiness from their borrowers. It must be clearly distinguished whether the consumer loan was mediated via an online platform or within a private circle of friends. In the former case, there will hardly be any personal contact between the lender and the borrower. This forces the lender to apply certain lending criteria for a consumer loan.
MAXDA has specialized in the provision of loans without Schufa. With a free inquiry, the entire network of banks is used to obtain many different loan offers. Part of this network also includes Swiss banks that do not work with Schufa and therefore neither make nor check entries. Your creditworthiness is assessed here solely based on the most recent monthly proof of income.
Thus, with just one inquiry a comprehensive comparison can be carried out and a loan without Schufa can also be applied for.
Applying for a consumer loan
A consumer loan can be applied for both online and directly at the lender’s premises. In the latter case, open questions can be clarified immediately and all required documents can be submitted in their original form. When applying online for a consumer loan, the lender will contact the borrower after receiving the fully completed loan application and inform them in writing or by email which additional documents are required.
If there is no possibility to submit the documents in person, they must be submitted using the PostIdent procedure. This procedure is at least legally required in Germany. The borrower must go to a post office counter with the loan documents and present them together with their identity card or passport. The counter clerk then verifies the personal identity and sends the loan documents for the consumer loan to the lender together with an appropriate note.
Approval of the consumer loan
As soon as the lender has received all documents, they will make a final decision on whether to approve or reject the consumer loan. Although many lenders expect the applicant to be employed as a worker or civil servant and to have a regular recurring income, there are various exceptions in which a consumer loan can also be approved for other groups of people.
This particularly concerns self-employed or freelance individuals, who often have the problem that their income is sufficiently high but not paid regularly and is subject to considerable fluctuations. With a little patience and the necessary perseverance, however, it should not be a problem for the self-employed to find a suitable lender. MAXDA is happy to advise you here as an independent loan broker.
Repayment of the consumer loan
How a consumer loan is repaid depends both on the bank's requirements and on the borrower's wishes. To find a loan that meets your needs, it is best to note these down in advance.
How high may the monthly installment be at most?
What term do you desire and how relevant is the term to you? (at MAXDA the minimum contract term is 12 months)
Do you want repayment as an installment loan or another loan form?
How important are you to you prepayments (special repayments) when repaying your loan?
It should be noted that term, loan amount and installment depend on each other. You should also ensure that, despite repaying the loan, you can retain a certain surplus for the daily needs of the household and repairs.
Consumer loan only for private purposes
In this context, it must be ensured that a consumer loan is used only for private purposes and never for business investments. For the latter case, business loans or public or private funding options are available.
If income fluctuates significantly, it is still very important that the monthly repayment installments for the consumer loan are paid regularly. For this reason, every entrepreneur should critically consider whether they really meet the necessary requirements to fully meet all obligations that come with taking out a private consumer loan. Lenders therefore often wait to grant loans to young entrepreneurs until three years after the start of the business activity.
The situation is more difficult for the unemployed and Hartz IV recipients. They only have a chance of obtaining a consumer loan if they provide additional collateral, a guarantor or a co-applicant. Usually, unemployed people only receive a purpose-tied loan.
Consumer loan from MAXDA
MAXDA has many years of experience and numerous connections to domestic and foreign lenders. For this reason, a suitable consumer loan can be found for every person who submits a loan application. Once the loan application has been received, MAXDA will contact the customer and discuss everything further. In this context, it must also be clarified whether a loan from Germany or a loan without Schufa from abroad would be more suitable. No general recommendations can be given here. Such a decision always depends on the personal circumstances and the loan requirements.
A consumer loan from Germany is available for amounts between 3,000 and 250,000 euros. The minimum requirement is a neutral Schufa report and a monthly income of 850 euros. If these requirements are not met, MAXDA can still mediate a consumer loan by providing additional collateral, such as a guarantor. Pensioners could also obtain a consumer loan through MAXDA. The current pension notice must be submitted for this purpose. Those who want a loan without Schufa must be between 18 and 60 years old and be employed. In addition, a minimum income of 1,130 euros is required. Otherwise, a guarantor must be provided. The maximum loan amount for a loan without Schufa is 7,500 euros.
Once MAXDA has found a suitable consumer loan, it will be paid out within a few days. Repayment begins 4 weeks later. The monthly installment can be paid either on the 1st or the 15th of a month.