A loan with an annual contract is possible. However, the borrower has to reckon with the fact that the term of the loan can only be one year or less. In addition, the Credit Bureau information must be in order and must not contain any negative entries.
If the borrower’s collateral is insufficient, a surety or a co-applicant can be consulted. He should have permanent employment, a permanent employment contract and an impeccable credit rating. If the borrower owns a debt-free property, a custody account or a life insurance policy, these things can be used as security for the loan with an annual contract.
Perform credit comparison
Every person wishing to take out a loan should compare several offers and not rely solely on their house bank. Interest and other loan terms are often much cheaper at a direct bank that does not have an expensive branch network than at another bank.
It may be worthwhile to shortlist a foreign loan. The same applies to a German bank loan: borrowing will only be possible if the term does not exceed the end of the annual contract. The loan amount, the term and the monthly loan installments should be adjusted to the personal possibilities. For this reason, a loan with an annual contract can often only amount to a few thousand USD. The bank responsible for lending can provide further information.
Application, approval and repayment
You can apply for a loan on the Internet or in a bank branch. The documents must then be checked by the bank. Only if this check is positive can the loan with an annual contract be approved and paid out within a few hours or days. The monthly loan installments remain the same during the term. This also applies to interest. They can be of different heights and can be either credit-independent or credit-dependent.
A credit comparison can clarify whether a credit-independent or a credit-dependent loan is cheaper in a specific case. If there are problems with the repayment, it would be very important to immediately speak to the bank. A common solution can often be sought and the initiation of coercive measures such as reminders, executions and or loan cancellations can be prevented.