A long-term loan with 10, 15 or even longer repayment terms is almost exclusively offered for mortgage lending. This includes a loan with 240 months maturity.
For other financings, these long repayment terms are uncommon and unprofitable. With high installment loans with particularly long maturities, many lenders attach great importance to the creditworthiness of the applicant.
For fast readers – a short overview
- A 240-month loan that is not one of the everyday consumer loans
- For example, offers for repayment at the age of 20 come from intrasavings bank, a life insurance company or mortgage lender
- By contrast, up to 144 months can be freely financed without earmarking
- Apply for – now & without obligation – your preferred loan
- The software answers in real time with individually fitting suggestions
Credit with 240 months term – house bank for mortgage lending
Many consumers often go to their home bank first for financing. This bank knows the financial situation of the consumer.
Often there are long and above all good business relations. A loan with a term of 240 months is usually only offered by the house bank for mortgage lending.
So that this financing can come about, a consultation in the branch is agreed in advance. Bank customers should bring with them a professionally prepared offer and a valid ID.
Bank customers, who are not from the EU, additionally need a valid residence permit. Particularly important is the private credit and the creditworthiness of bank customers.
If the customer wishes to purchase commodities, such as motor vehicles or high quality equipment, he will not normally be offered a credit term of 20 years. These loans are funded for a maximum of 10 years, ie 120 months.
As a rule, bank customers must always be able to offer additional loan collateral for these long-term loans.
Credit Requirements – Collateral
Every German bank collects private credit information when making a credit inquiry and checks the creditworthiness of the applicant. In the case of small loans and medium-term loans, creditworthiness is often ensured with the salary.
240-month loan – small installments for large purchases
For a 240-month loan, the situation is different. With this long term and a correspondingly high loan amount, additional collateral is often required from banks.
These are either various insurance or personal security. For example, if you want to secure your loan with collateral, you can offer the bank fixed deposits, high-quality works of art, funds, stocks or real estate assets.
If these securities are not available, the applicant will need a guarantor. A guarantor can come from the close relatives or friends.
Particularly important is its liquidity. An additional borrower can also improve the prospects for a loan.
These persons normally assume liability on their own. This allows the bank to approach the guarantor or co-applicant immediately in the event of a loan default.
Credit comparison on Smava – online and direct banks
The supply of loans from the Internet is often not manageable for consumers. This is because more and more online and direct banks are pushing for the lucrative online lending market.
If the loans are compared manually, consumers need a lot of time. A credit comparison on Smava, however, is very easy and can be done with a few mouse clicks.
On the comparison pages of Smava, loans from 500 Euro to 120000 Euro can be compared. There are credit periods of 12 to 144 months selectable.
However, a loan with 240 months is not possible. Anyone who has opted for a shorter term, additionally enters the loan amount and a purpose in a loan calculator. The consumer will immediately see numerous loan offers.
Based on the credit information of the banks, the displayed credit offers can easily be compared. If the consumer has opted for a lender, it is redirected.
The installment loan can be applied for online immediately.
Limited credit requirements – long-term loans
If a consumer has slight negative features in his private credit or the credit rating is somewhat limited, banks often give a rejection when making a credit inquiry. This rejection is not justified by many institutes.
Anyone who has been rejected by a bank can turn to a credit marketplace on the Internet. These portals bring together consumers and private investors. The operators of the credit marketplace act as intermediaries.
Likewise on the credit marketplace of Smava these installment loans are offered by private investors. The financiers of Smava finance loans from 1,000 to 50,000 euros.
The terms are 12 to 144 months. A 240-month loan is not possible on a credit marketplace. Anyone who still urgently needs money, applies for the installment loan online.
After entering the loan amount, the repayment term and the purpose of use, a preliminary loan offer is then displayed. After entering the personal data, a private credit information is obtained.
A loan is also possible with slight negative features.
Long-term financing – loan comparison saves money
Long-term loans with maturities of up to 20 years are normally only provided by mortgage lenders. Who decides then for a long-term financing, should compare in any case many credit providers with each other.
A credit comparison can save a lot of money. For other purchases, except real estate, these loans are not offered.
For a loan with a term of 240 months, banks often demand additional collateral. Credit agencies and credit marketplaces do not offer these long repayment terms.
For these lenders, however, loans are available for a maximum of 10 or 12 years.