A personal loan is a type of consumer credit where the loan amount must be paid in one go and then repaid by the borrower in a fixed number of installments. Each term contains a fixed monthly amount and interest on the residual debt. The loan agreement determines the number of running months and interest is described herein, unlike a revolving credit where you can make changes to the term and increase the loan. The interest that is charged for a personal loan is higher than with a mortgage loan (due to the lack of security) and lower than with a revolving credit (due to the lack of interest rate risk).
Revolving credit is a bank term for a consumer credit form in which the loan sum can be fully or partially taken up again during the term. Interest is charged on the outstanding balance of the credit. The theoretical term and interest are laid down in the loan agreement, but are subject to change during the term. The course of the loan is therefore not certain. The interest rate charged for a revolving credit is usually higher than for a mortgage loan (due to the absence of a security right) and a personal loan (due to the interest rate risk). The repayment usually takes place by calculating a monthly installment as a percentage of the credit limit (often 2%), or of the outstanding balance. A characteristic of a revolving credit is that the borrower may pay extra without penalty during the term, which shortens the term.
A mortgage loan, mortgage loan or mortgage-backed loan, commonly referred to as a mortgage in the ordinary language, is a loan in which a registered property, for example real estate, serves as collateral. If someone borrows money for the purchase of a house and gives house as collateral, he owns the property, borrower and mortgage lender. The lender, usually a financial institution, is the borrower (he acquires the right of mortgage: first right of sale). The bank is therefore ‘mortgage holder’. These terms are often used incorrectly in reverse.
A mini loan is a loan with a loan amount below 1000 euros and is usually repaid within a month. The application time for a mini loan is very short, sometimes within a few minutes. This is because you only have to provide a copy of identification and a salary slip with the first application. Subsequent applications can then be requested by SMS. some providers do not perform BKR testing.