If you are interested in a long-term installment loan, you can usually expect a loan term of 12 to 120 months at the banks. However, it always depends on the amount of the loan how long the loan term is. Those interested in credit are very happy to choose a long-term installment loan so that the burden is as low as possible each month. The demand for loans with a longer term is constantly increasing and so the loan is enjoying great popularity. German credit prospects prefer to choose a longer term, even though they know exactly that they will then have to pay significantly higher borrowing costs. It must therefore be mentioned at this point that the interest on the long-term installment loan is significantly higher.
Saving costs with a credit comparison
In the meantime there is a large number of offers on the Internet and these are normally difficult to overview. However, there are credit comparison portals for consumers, which makes the comparison significantly easier. The individual lenders differ significantly in terms of loan costs, so a lot of money can be saved by comparing a long-term installment loan. So if you really want to save money, get several offers and then decide on the most interesting.
If you want to save even more money, you must ideally choose the term of the loan. It must be determined that a smaller loan amount does not necessarily have to be repaid with the longest possible term, for example 84 months. Many banks work with interest rates that are dependent on creditworthiness, so the interest rate is much more expensive over a long term, as if the loan was only repaid over a term of 24 or 36 months. The longer the term of a loan, the higher the risk of default. The banks have recognized the risk of default and are taking action to increase interest rates.
Does a long-term installment loan make sense?
Anyone interested in a consumer loan should keep the term of the loan as short as possible. The whole thing looks different when it comes to real estate and construction finance. Since the loan amount is often very high here, the loan would not be affordable without a long term. With a mortgage, the term is 120 months and even longer. It depends on how long the term is and how high the interest is when the contract is concluded. A longer fixed interest rate can be chosen if the interest rates are low. This means that a prospect can secure the low interest rates for as long as possible.