A loan without a down payment is a loan that is given without any premium that the borrower has to pay. Thus, a loan without down payment is particularly advantageous if you are very close to cash.
Credit without deposit for consumers
As a rule, consumer loans, which are also referred to as installment loans, are granted without deposit from banks and savings banks. They are usually accepted for amounts between $ 3,000 and $ 50,000 and are used to finance consumer durables, such as furniture or expensive household appliances. Many property owners who want to renovate their house or apartment costly, take on such a consumer credit. With him, interest and repayments are fixed in constant monthly installments, so that they can be well calculated into the household budget.
Credit without deposit of Autobank
Many people who want to buy a new car prefer a loan without down payment. Each well-known car manufacturer now either owns a bank of its own as a subsidiary or works closely with a foreign bank to enable customers to cheaply finance the cars it sells. As a rule, these banks also offer loans without down payment, the terms of which are shaped like a consumer loan described above.
A special feature of this type of car financing is that the vehicle serves as collateral for the loan. However, customers should pay attention to the duration of the loan – it should not be longer than the planned useful life of the car. Otherwise, the borrower still has to pay installments for his loan, even though he no longer owns the financed car. For loans without a down payment for a car, the rates will be relatively high. Already for a vehicle, the lower middle class, which is to be financed over a term of five years, come so easily installments of several hundred USD monthly. The customer should think twice whether this financially does not overwhelm him.