Leipzig.The interest rates are low. But that doesn’t mean that every loan is really cheap. On the contrary: According to observations made by the Saxony Consumer Center, there are always excessive interest rates or costs that make a loan unnecessarily expensive. Some offers are simply usury.
An example: A company offers a loan with a term of 61 days for 1500 euros for immediate disbursement. The borrowing rate is 14.20 euros, but there are also costs for an extra service that can be booked at 99 euros. The effective annual interest rate in this case is 80.86 percent. If you don’t pay back the loan in one, but in two installments, you have to pay 149 euros extra. According to the provider, the maximum effective annual interest rate is 1509.40 percent.
Comparisons are worthwhile
Before taking out a loan, everyone should think carefully about whether this is necessary. It is usually better to build up reserves in order to be prepared for unforeseen expenses. A tip for everyone who needs a loan: Compare the prices of as many credit institutions as possible. And: don’t be blinded by small monthly payments. The only meaningful information is the effective annual interest rate, which the banks are legally obliged to disclose. Almost all costs are allocated over the entire term. mr
© Mannheimer Morgen, Friday, January 22nd, 2021
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