Online loans for bad credit -Get a good loan for people with bad credit

Save Big and get a good loan for people with bad credit

A loan agreement for a loan for bad credit is the written agreement between a lender and a borrower about the granting of a loan- more info here.

The loan agreement is colloquially called loan agreement. Occasionally the spelling “loan” is used. As a rule, the bank provides the lender, while the borrower is a private individual. The conditions for granting a loan are regulated in the BGB (Civil Code) in §§ 488 to 498. Private individuals may enter into a loan agreement.

The consumer loan represents the legislator by the §§ 491a and 512 BGB under special protection. This includes formal requirements, minimum requirements and the right of withdrawal according to § 355 BGB. A loan contract is created through an application and acceptance. The precise term is a loan agreement as opposed to a loan agreement. In the legal sense, it is the law of obligations, as money or things are issued for use on a temporary basis. The transfer takes place with or without interest. According to § 280 BGB, a claim for damages arises if the money is not paid or the acceptance of the money is denied. In the first case, the claim is borne by the bank or the lender. In the second case, a legal claim arises at the expense of the borrower.

The loan agreement contains all the details of the loan: the lender and the borrower with the complete address; the agreed interest rate and the effective interest rate; the fixed interest period, which determines the valid interest period for both parties; the term of the loan, which may differ from the fixed interest period; the loan amount; the loan installment and the repayment installment, ie the percentage by which the loan is repaid ; Collateral and other agreements. Security is, for example, a land charge registered in the land register in favor of the bank. Only when the loan is fully repaid, the mortgage will be deleted.

However, the bank can only access the mortgage in the amount of the outstanding loan amount. However, the bank has a not insignificant interest claim on the mortgage in case the debtor is in arrears. Within the framework of the EU requirements, the borrower is entitled to a 14-day right of withdrawal after the conclusion of the loan agreement. Attached to the Loan Agreement are the General Terms and Conditions (GTC) and a summary of the terms of the loan as required by the EU. In addition, the bank typically requires a direct debit/debit authorization for the loan installments.

Any loan may be terminated by the Borrower under the terms of the law with a notice period of three months unless otherwise agreed in the contract. However, the bank then demands a prepayment penalty to compensate. The bank also has the right to termination. This can be the case, for example, if the borrower comes into a difficult financial situation as a result of unemployment and the bank fears that a loan default might occur.

Changes in the economic situation of the borrower must be communicated by the borrower to the bank. The bank can also demand insights into the financial situation in the course of the existing credit relationship. There are different types of loans. A fixed loan is due at the end of the term. An annuity loan consists of constant installments that have a higher repayment installment over time as interest rates proportionally lower. In the case of a payment or installment loan, the interest is initially added to the loan amount and paid in equal installments. A special case is the forward loan, in which the loan is paid out in the future.

Comments are closed.