The term loan, also referred to as a call-off loan, offers a comparatively low-interest alternative to the normal discretionary loan and is purely technically settled between this and a normal installment loan. Framework loans are therefore also used for short-to-medium-term financing. As a consumer, we offer you the best alternative to classic credit with our loan. Try our service now without obligation and you will.
Definition: What is a framework loan?
To its designation comes the credit frame in that the bank first a credit account with a certain credit line is opened. This is comparable to the credit line of the credit line. Once established, the credit line can be used in full or in part. Interest is only charged on the amount actually used. A minimum amount of 1 to 2 percent of the loan must be repaid per month. However, the borrower is also free to repay the entire amount at once in order to keep the interest burden as low as possible.
For whom is a framework loan suitable?
The favorable credit line is suitable for individuals who need short-term money or simply want to gain an additional financial cushion on a debt basis. Up to the amount of the credit line can freely dispose of the money and make short-term investments. Framework loans can be requested by employees, the self-employed, students and freelancers, provided that they have a regular income and an account with the respective bank. The credit line is a favorable alternative up to a term of 12 months. For longer terms, however, the conclusion of a normal installment loan is recommended.
However, if you need extra money quickly, without having to open an account or having to commit yourself for a long time, then you are best advised to pay with the short-term loans from Great Lender.
This is how a framework loan works
An underwriting credit usually requires an account with the appropriate bank. As with any other lending business, you should first compare the various offers here. Once the account is opened, the credit limit that you have after that will be determined . It is up to you to decide whether to take part or all of the credit. Interest is paid only on the amount actually used. It should be noted that the rate of interest on credit lines may vary over time as it is based on reference interest rates.
The duration of the borrowing can be compared with the frame loan with a normal installment loan. A cheap credit frame is only really fast if it already exists or has been applied for. But if that’s not the case, you’ll get loaned much faster with Great Lender. The innovative and automated online loan application even makes it possible to credit the money to your own checking account in just 60 minutes. In addition, clients using Great Lender are not tied to the bank for as long.
Advantages and disadvantages of a framework loan
Preference of the framework credit
The credit can be used flexibly after his application and is cheaper than a disposition credit.
Weaknesses of a framework loan
The application for a framework loan usually takes longer than a short-term loan, since an account with the appropriate bank must first be opened and a framework credit agreement must be concluded. In addition, the interest rate may change over time.