Find the right loan for your financing request.
Would you go to a clothing store and buy a new pair of pants without any prior inspection or fitting? Probably not, because there is a very high probability that the pants you selected are too short, too long, too wide or too tight.
It may be a risky thesis, but sometimes taking out a loan and buying new pants can have certain parallels – not every loan is necessarily the right one for every borrower. Depending on the financing request, loan amount or financial scope of the consumer, one or the other type of loan is better.
Financing desire decides on the optimal loan type
First of all, every potential borrower should ask himself what should be financed with the borrowed money. For certain uses, such as buying a car or modernizing a property, banks offer special, earmarked and therefore lower-interest loans. Even if the loan is to be used to reschedule an existing overdraft facility or bank loan, it is advisable to look for a special rescheduling loan.
In addition to special-purpose loans, banks also offer different types of loans for different customers. A consumer who is self-employed or freelance, for example, takes out a special loan for the self-employed or a business loan – banks usually offer government employees a so-called official loan.
A loan calculator helps to quickly determine the right loan type
The selection of different loan offers according to the required loan amount is one way to find the right loan. For particularly low amounts of money between 500 and 5,000 USD, some financial institutions offer so-called micro or small loans. If the bank borrows a very large amount of money – for example for real estate financing – it is possible to take out a construction loan, which is usually granted from amounts of more than 50,000 USD.
A particularly convenient and time-saving way to find the right type of loan for your own financing request is a special loan calculator on the Internet: To do this, the consumer simply has to enter the required amount of money, the desired term and the intended use of the loan in the comparison calculator. The calculator then filters the suitable loan for the respective financing request from a variety of different offers from different banks.