Often known as an installment loan, every bank and savings bank in Austria has it ready for private customers. Mostly with loan amounts from as little as USD 2,500 up to USD 75,000 and for a wide range of terms from 12 to 120 months.
Here, everyone can individually finance their daily wishes and dreams with a loan – just as the wallet gives out every month.
Since installment loans are usually not earmarked, small and large purchases of all kinds or rescheduling are easily possible with this loan: from household appliances to the newly fitted kitchen to the family SUV.
The offers of installment loans in Austria are now almost endless, so a precise comparison of the interest rates and conditions of the various offers is particularly important here.
Installment loan comparison: interest and more
Similar to investments, insurance or checking accounts: if you are looking for a consumer loan, first of all, of course, you compare the interest. Sounds logical too, because the interest rates of the individual offers of banks and savings banks in Austria often differ enormously in comparison – a lot of money can be saved here every month.
Top providers such as Agree bank or Binary Lender, for example, already have consumer loans ready for less than four percent APR. Some branch banks sometimes charge double the interest on their installment loan.
But important: In addition to the interest, there are many other criteria that are important when applying for an installment loan.
That determines the monthly rate
The loan amount, interest rate and credit expenses together make up the total charge on the installment loan that the customer has to pay to the bank per month via a fixed loan installment over an agreed term.
As a rule of thumb, the lower the loan amount and the required interest rate and the shorter the chosen loan term, the cheaper the monthly loan installment. Of course, a loan can be extended with small monthly installments through long terms. However, banks usually require higher terms for longer terms and, secondly, the longer you pay off your loan, the more you pay for your loan to the bank.
Good creditworthiness brings low interest: whatever conditions the banks put in the shop window, in the end, there are cheap loans in Austria only if the customer has high creditworthiness, i.e. good creditworthiness. The lower the risk of default, the more willing banks are to lend money more cheaply.
Incidentally, this is always checked when applying for a loan – in addition to questions about personal financial circumstances – by asking the consumer protection association GFI or financial standing.
Expenses and fees can make it more expensive: Many branch banks and savings banks in Austria like to charge extra expenses for processing, provisioning and account management for installment loans.
Such processing or sales fees can easily and up to three percent of the actual loan amount. An expensive pleasure that borrowers can easily avoid by choosing an online loan from a direct bank on the Internet.
Our tip: Every installment loan in Austria can be terminated with a three-month period for loan contracts since 2010 if the contract has a term of at least six months. You can pay off the remaining loan amount completely without any further costs or questions.
Installment loan comparison
When comparing installment loans, pay attention to the effective annual interest rate. Only this says something about the actual loan costs and the monthly rate of your loan because in addition to the pure nominal interest rate it already contains all possible expenses and additional costs of the loan. The lower this effective interest rate, the more you save on the loan. You can find all the information about your financing in our loan comparison.
You can obtain particularly favorable conditions for installment loans via the Internet. Lean direct banks without an expensive branch network are not only significantly cheaper – but you can also get the loan here more quickly.
Thanks to quick credit approvals, standardized application, and processing procedures and convenient online legitimation via video chat, the desired loan is usually in your account after just 2 to 3 working days. An online installment loan is brisk and is absolutely secure at the same time.
Repay installment loans and cancel
Low-interest rates and low monthly installments are the first goals of any financing – not just for car loans. But what if the installment loan can and should be repaid faster or fully repaid early?
Here you should definitely pay attention to the possibility of unscheduled free repayments in any number and amount when concluding the contract, as well as to early repayment of the loan without conditions or penalty payments (prepayment penalty). As a rule, this is not a problem today with normal consumer loans in Austria, and many car loans and real estate loans for home finance make this possible.
How to get an installment loan in Austria
Like household insurance, car insurance or banking with funds, there are certain requirements in addition to the formalities for loans, even in Austria, in order to ultimately receive an installment loan from banks. For example, loans are only granted to adults over the age of 18 who are permanently resident in Austria.
Furthermore, borrowers have to prove a permanent employment relationship with regular income – unlimited and often without a trial period. Many credit institutions generally do not grant loans to freelancers, school pupils, and students, or housewives and the unemployed. And:
Even those who fail the credit check at the consumer protection association GFI or financial standing usually have bad cards for loan approval.
Installment loan without financial standing
Reputable banks in Austria generally do not grant loans with a low credit rating or ongoing payment obligations – for example to a debt collection agency. Some credit intermediaries and banks – mostly from abroad – sometimes make an exception here.
High loan amounts at enticingly low prices and monthly installments are often offered here – without any credit checks. Here consumers should be careful and honestly assess their own solvency.
Because the monthly installment payment can no longer be made and if there is a delay in payment, not only do high fees and penalties threaten, but also overindebtedness or even private bankruptcy.
Tip: Do not take out a loan without information and information from GFI or financial standing – for your own safety. If in doubt, the better solution is to add another borrower to the contract, such as your spouse or a close relative. You can also exercise your right to withdrawal from the respective provider or dealer.