Monthly Archive: December 2018

Cancel a loan: quite simply with sample and form

The will to terminate a loan is often given quickly.

However, before the borrower puts that step into action, he must be aware of the consequences.

Canceling a loan agreement can have more far-reaching consequences than terminating a cell phone contract.

All facts about the guide “Cancel a Loan” at a glance:

  • Termination of loans can be motivated by divorce, job changes, a changed life situation or falling market interest rates.
  • Depending on the form of loan, different statutory notice periods apply. These can also be contractually replaced.
  • The pattern for a termination can be used as a template.

1. Four reasons for a termination

Everything is not always going according to plan in life. There are decisions that can have far-reaching consequences.

If the case arises that a divorce is imminent, the house can usually no longer be held by one alone, as the repayment installments can no longer be paid.

But even if the relationship with the life partner is enduring, the relationship with the employer can sometimes be unexpected. Job changes, whether due to termination or transfer, can result in the sale of the home. Only a few can allow the house as a second home in case of a necessary move. In this case, from the point of view of the borrower, it seems to make sense to terminate the loan agreement. Loans that are no longer needed do not need to be serviced anymore.

Then there are of course the savings fox among the debtors. In the face of falling lending rates, the sight of their own out-of-date credit conditions drives them to their foreheads. With each installment to be paid, they calculate how much they could save on a current interest rate loan – and consider what they could do with the money. Sooner or later, this will make debtors clean up new offers, seek information regarding the termination right and seek a conversation with the bank adviser. Nothing gnaws so much at the ego of a saver, as the feeling of being overreached.

Another reason for the termination may be the change in the life situation, which require shorter or longer terms of the loan. Thus, the death of the partner in addition to the emotional burden can also lead to financial losses. The consequences of this can also be the beginning of family planning, since most of the salary of a partner is lost. However, this scenario is usually considered in advance, is included in the maturity. In addition, there are now numerous credit models that include potential changes in the living situation. Here, special repayments are possible in case of unexpected cash injections and lower repayment installments when the budget is running low.

The termination of a loan can be for various reasons for debate. Divorce, change of job, changed life situations and also the market development can move the debtor to such considerations.

2. What protection against dismissal exists for which loan?

The BaFin, that is the Federal Financial Supervisory Authority differentiates into various types of credit or loan, each with different rules regarding the protection against dismissal.

a) The loan takes longer than the fixed interest rate

 This form of loan is in common use. Evil tongues may claim here that the low initial interest rates are only lock-offers. The fact that an adjustment to the market interest rate takes place after a certain period of time has also had advantages for the borrower in the past. Because, according to the agreements that are laid down in the loan agreement, interest rates may even fall after the interest rate has expired.

In general, such contracts can not be terminated within the fixed interest period. However, after expiry of the fixed interest period, § 489 (1) no. 1 BGB (German Civil Code) and the borrower can terminate the contract with a one-month notice period. However, if other arrangements have been made in advance – both at the conclusion of the contract or shortly before the end of the fixed interest period, the above notice period is obsolete.

b) Loans with variable interest

In times of higher market interest rates and the associated expensive loans, the temptation to resort to loans with variable interest rates is great. True to the motto “It can not get any worse!”, These loans are concluded with the ulterior motive of switching to lower interest rates. This possibility is even supported by the legislature. In principle, the periods of notice are here according to §489 paragraph 2 BGB at three months.

c) A long-term loan with a fixed interest rate of more than ten years

These loan agreements are mainly agreed upon when building or buying real estate, as the repayment terms here are extremely long. Basically, this contract is similar to the form in subitem a), except that the maturities here are longer. This is also reflected in the legal agreements on dismissal protection. According to BaFin, §489 paragraph 1 no. 2 BGB applies here. After expiry of the fixed interest period – ten years or more – the borrower has to observe a notice period of six months. In the case of mortgage or mortgage cover, the provisions also apply.

d) The loan is secured by a mortgage

Within these ten years, however, in the case of mortgage or mortgage loans, the borrower will not be able to terminate these loan agreements. Exceptions here are so-called extraordinary occurrences, in which the objects on which the mortgage of the mortgage is to be sold, can or want. That this happens may be related to inheritance disputes, divorces or unlawful lending to other creditors.

With the loss of the hedge also the credit contract loses validity – to the disadvantage of the borrower. The now occurring termination can be accompanied by sensitive penalties, such as prepayment penalties. That is why caution should always be exercised, especially with real estate loans secured by mortgages and mortgages. If the debtor is in financial distress, it is by no means recommended to make some unanimous decisions.

A conversation with the bank adviser or an independent financial advisor can shed some light on the subject. Often opportunities arise here, to which the average consumer does not even think.

e) consumer loan agreements

The fifth form of loan is a consumer loan agreement according to § 491 BGB. This means, above all, that they are not secured by a mortgage. There are also loans for which no terms have been agreed. Here only monthly interest payments are to be made and the loans can be paid regularly or depending on the budget. The notice period can be up to one month.

If terms and installment credits have been agreed, although premature termination is generally possible, a prepayment penalty may be charged by the lender.

Again, there are conditions by the legislature. § 502 BGB shows how the prepayment penalty can be calculated. It has also been determined that it may not exceed 1 per cent of the early repayment amount. If the difference to the agreed repayment date is less than one year, the prepayment penalty may not exceed 0.5 percent.

An example:

The loan amount is 200,000 euros over 25 years. Assumed after twelve years to pay only 100,000 euros. If the borrower wants to settle the loan immediately, the interest amount and a prepayment penalty of up to € 1000 must be paid in addition to the outstanding loan amount.

If the same loan is terminated after 24 years, the open loan amount of 800 euros in the simplest case plus the outstanding interest and a prepayment penalty of a maximum of 4 euros must be paid.

Under § 502 Abs. 2 BGB the conditions are listed, under which the payment of a prepayment penalty become obsolete. These relate primarily to the written form of the credit agreement or missing information in the loan agreement.

It should be noted at this point that all the deadlines mentioned above are only valid as long as no other agreements have been made. According to German jurisprudence, lending transactions are legal relationships that can be freely designed, as long as the applicable law has not been violated, for example the Wuchergesetz § 138 Ab. 1 Nr. 1 BGB.

3. How to cancel your loan agreement in 3 steps

When terminating a contract, the following must be taken into account:

  • Name and contact details of the borrower
  • Name of the lender
  • Date of termination
  • Designation of the contract / credit account number

If you are uncertain about the correct approach and liquid formulation, you can use the following form as a template:

You can copy this form into a word processing program, fill out the relevant places and print them out. You can use the pattern for termination as a template and form.

4. The conclusion: dismissals require preparation

Whether the effort to carry out a termination makes sense depends primarily on the reason for the termination. If the loan is to be terminated due to a sudden financial wind-up against the contractual arrangements, it must be weighed up whether the prepayment penalties that may be due are really advantageous in relation to the benefit of a loan or if investing the money in capital investments makes more sense.

Such considerations must also be considered when changing loan agreements. Here, the total effective interest rate can be compared using tables. It not only includes interest and repayment installments, but also all additional fees.

Fast and unbureaucratic loans for the self-employed and companies

 

Bank says no and what now?

To some extent, it is part of the nature of every independent professional activity and entrepreneurship that even with otherwise solid business and serious planning, there may be financing gaps here and there which must be closed. This requires fast, short-term and unbureaucratic loan solutions to ensure solvency and maintain business operations. The self-employed, tradesmen and small and medium-sized enterprises (SMEs) are often desperately looking for uncomplicated financing solutions in the sense of a bridging loan or bridging finance.

Classic banks are geared towards long-term loans

Although self-employed persons and SMEs usually have a long-standing and good relationship with their house bank, it turns out that the house bank is not the appropriate contact for short-term and time-critical loan solutions. Often, however, one does not want to overburden the confidence of the house bank by having to disclose there liquidity problems or general problems in the course of business.

financinga stands for short-term, fast and unbureaucratic loans

Well, there are alternatives to the house bank. The finance company financinga is fully specialized in short-term, fast and unbureaucratic loan solutions, thus closing a real market gap. Thanks to a specially developed innovative credit analysis technology and the cooperation with Fibor Bank, financinga is able to quickly and easily lend short-term loans, for example to provide liquidity or to buy preliminary products.

Conditions of financinga at a glance:

  • Credit lines from € 1,000 to € 100,000
  • Loans for SMEs as well as freelancers, freelancers, tradesmen and self-employed
  • Realistic credit opportunities even if conventional banks have already rejected
  • Loan applications are completed online & paperless within minutes
  • Credit decision & payment can be made within 24 hours
  • Non-binding & free financing offer
  • Terms up to 12 months

Requirements for financinga loans in Germany:

  • Annual sales from 10,000 €
  • All legal forms allowed
  • At least four months of operational activity
  • Registered in Germany

Important: Acceptance criteria are much less stringent than in conventional banking. Additional collateral is not required.

With the financinga online platform, self-employed and SMEs can easily and quickly apply for loans, for example, to buy goods, settle unexpected bills or secure growth. This makes financinga the ideal partner for short-term financing solutions as bridge financing, bridging loan and problem solving of unforeseen financing bottlenecks or liquidity gaps.

financinga with top reviews on TrustPilot

There are currently over 250 reviews of verified customers with an overall rating of 9.5 out of 10 when it comes to evaluating customer service or the entire offer on TrustPilot. Particularly often and positively, the simple processing of the credit inquiry is highlighted:

“Easy-to-use Internet portal, easy upload of the required documents, nice, sympathetic, competent telephone contact, fast processing, gladly again…”

The speed of settlement, which is of enormous importance in time-critical financing problems, is praiseworthy mentioned:

“I’m excited! Uncomplicated application, everything online without annoying paperwork – in addition still accessible, friendly and competent contact person! And everything was done in 14 days… For this, other banks like to need 6 months… Highly recommended! Thank you!!”

Our credit rating for short-term and fast online loans for the self-employed and SMEs is summarized in the monthly updated bridging loan ranking. financinga has been a TEST WINNER for short-term and fast loan solutions for months.

Our recommendations for short-term and fast loan solutions, bridging loans and bridging loans:

Our top recommendations for short-term loan solutions up to 100,000 euros are, in addition to financinga, the finance portal  inancingent.

We also recommend moneyor, especially for smaller loan projects that require explanation, because here the loan project can be presented in detail to the investors. Experience shows that this has a very positive effect on lending. More about: Secret tip Crowdlending: Alternative loan for the self-employed with good chances of success!

Self-employed, freelancers, small companies and tradesmen should know…

  1. The Digital Corporate Loan offered by inancingent meets the requirements for fast lending to bridge financing bottlenecks: within just 24 hours, a loan commitment of more than € 100,000, a maximum of € 750,000 within 48 hours. Also under: inancingent also for fast credit solutions within 24 hours!
  2. Financing is possible by means of money from the state even without repayment: More on: How self-employed, founders and small companies received money from the state even without repayment!
  3. inancingent facilitates the financing of start-ups and start-up companies. More about: start-up financing for self-employed, founders and entrepreneurs
  4. Important and always underestimated: Always study first credit requirements, and then submit the application! This saves unnecessary frustration and false hopes.
  5. With the financial portal inancingent, commercial real estate financing can save up to 30% interest!
  6. Company leasing is a suitable alternative to normal corporate lending if there is no equity or otherwise tied up, or if credit lines are not to be charged further.
  7. Find the cheapest loan offer instead search: With the credit formula can save up to 40% interest!
  8. Did you know that the Financial Technologies company financinga makes loan decisions within a few hours and therefore within one business day possible for up to € 100,000 for short-term loans!
  9. With inancingent, SMEs and self-employed people can order and compare other tailor-made financial products online in addition to the company loan : project financing, company leasing, current account credit, investment loan, bridging loan,…
  10. Before you go for a loan to the bank or the Internet, you should inform yourself about the credit requirements in detail! This saves you unnecessary frustration and false hopes.
  11. A financially strong guarantor increases your chances for a loan!
  12. If you do not find a guarantor, a credit insurance can be useful as additional security!

Everything else about loans for the self-employed, freelancers, founders, entrepreneurs, tradesmen and small companies can be found in our practice guide loans for small businesses and the self-employed.

Instant loan without private credit information – The best provider?

The Private credit entry can have a negative impact on the credit rating. But if you need a loan without Private credit quickly, today you can choose from a variety of options.

  • Little effort and fast payout of the money
  • Even small amounts possible
  • No entry of loans in the Private credit

You are looking for an instant loan without Private credit? Where are the best deals on instant loans without Private credit? Reputable providers, important background knowledge and tips for your credit comparison. We show you how it works!

Instant loans without Private credit: The possibilities are manifold

Getting a loan without a Private credit query is almost no problem today. Above all online, there are many providers who make bridging financial difficulties possible even if the credit rating is not so excellent. In the test, we took a closer look at the providers and selected the test winner for the instant loan without Private credit. For a brief overview of the different options, there is a small summary:

Make money quickly with DivaPawnshop

DivaPawnshop is the first online pawn shop. The provider works on the classic principle of pawnbroking. Anyone who has valuables can give these in payment and must pay interest on the amount granted. The credit is not mentioned in the Private credit.

The advantages at a glance:

  • Get money fast and easy
  • Repurchase of valuables easily possible
  • Even larger amounts can be claimed

The disadvantages at a glance:

  • Repayment required within a certain period of time
  • If not returned, the valuable item changes ownership
  • Partly high interest rates

Gems and jewelry bring money to DivaPawnshop

Use offers from private providers

Today, there are many investment opportunities and one of them is the option to lend money privately to privately. Agents such as auxmoney and smava have specialized in providing a platform for these offers. Here there is the instant loan without Private credit usually without problems.

The advantages at a glance:

  • Negotiable amount of the amount
  • Negotiable repayment modalities
  • No entry at the Private credit

The disadvantages at a glance:

  • The loan does not have to be granted
  • Demand of collateral possible
  • The amount of interest may be higher than the current interest rate

Microcredit: When a small amount is enough

Sometimes it is only a small liquidity weakness to bridge the next salary receipt.

Here, a microcredit, for example, from Xpresscredit or cashper sufficient. The platforms offer the issuance of small loans without Private credit.

The advantages at a glance:

  • Suitable for bridging short financial difficulties
  • No long maturities
  • Small amounts of interest due to short maturities

The disadvantages at a glance:

  • The amounts are repayable quickly
  • Interest rates are set high

Instant loan without Private credit information: our test winner

In addition to the above options, there are also providers in the network who provide a loan without Private credit. The amount of the loan is variable. These providers include Maxda and Crediter. In our for the instant loan without Private credit information Crediter could score. The loan application can be made quickly and free of charge via an online form. The instant loan amounts up to 100,000 euros are possible. The loans are at leisure, it is not necessary to specify a purpose here. Another advantage is the flexible terms, they are between 12 and 120 months. With interest from 4.9 percent, Crediter is also the winner in this area.

Conclusion: Crediter without Private credit information get a fair commitment

Even without Private credit information an instant loan is possible on fair terms. Above all, the provider Crediter could score points in the test. This scores with flexible terms of 12 – 120 months and an interest rate of 4.9 percent.

Particularly noteworthy is the maximum possible loan amount of up to 100,000 euros.