Call-off Loans

In contrast to a traditional loan or loan, which is granted once in the amount of a certain amount, the call-off loan acts as a permanent credit line .

This form of credit is a little more complex, usually offered with slightly higher interest rates, and is nevertheless a very interesting alternative to other forms of loans and advances, as it focuses on the flexibility of customers in financial matters. How exactly does this story work with the call-off loan? Here you will learn more about the function, the advantages and disadvantages .

What is a call credit?

The easiest way to compare an on-call loan with a credit line . At the beginning there is a sum, which is granted by the bank for its own current account . The customer has the option of always putting this sum to the end and, logically, has to compensate it again in part until it can be used again. Now enjoys the Dispo with its high interest rates not very popular among customers and is therefore inferior to a call credit. This is usually granted when it is not clear what the actual loan amount is. Not infrequently, it is also given as a supplement when a borrower decides, for example, for a real estate financing and requires a little extra margin for the running costs.

Credit line

The call-off loan is set up by the bank as a classic credit line . It is agreed in the loan application so that a certain amount is made available to the customer at any time can dispose. The loan runs thereby independently of the account and should not be regarded as a Dispo, since it must be paid also separately. At the present time, for example, it is normal for a repayment of approximately 5 percent of the loan amount to be agreed each month.

Example

If, for example, the person has a credit limit of 3000 euros and irritates them directly, he would pay 150 euros each month in repayments. In addition, of course, the interest, which has also been agreed with the application together. The key difference to a normal loan is that it can use the money paid back anytime and the eradication continues. Therefore, there is no classic term , as it is for example in a normal loan.

Advantages disadvantages

Here you can find out more about the advantages and disadvantages of the call-off loan or call-off loan.

Advantages

  • The on-demand loan offers the advantage of providing the borrowers with the full flexibility they may desire from such a loan.
  • Because they have access to them at all times, they can use it for a variety of purposes and access the capital over and over again.
  • The automatic repayment allows the loan to be paid off unaffected for a few months and then automatically available again when the money is needed.

Disadvantage

  • Disadvantages can be found in the fact that these loans usually have higher interest rates than other types of loans.
  • In addition, it is possible that the automatic repayment becomes a burden on the account. But since this is actually the case with every repayment for a loan, that should not play too great a role.

Call-off loan makes sense

The on- demand loan can certainly be seen as a very good way to get more flexibility in your own finances. However, it is especially important for this loan that one agrees on a realistic sum in the eradication and also compares before the providers to obtain the best possible conditions.