A loan over 140,000 USD is actually no longer a small loan. Nevertheless, the 14000 USD loan can be taken out with favorable conditions. There are banks that charge interest of between 4.29% and 10.99% depending on their creditworthiness with a term of 48 months. Many now think that these are lure offers, but far from it, over two thirds of all customers receive an actual interest rate of 4.29% on average.
The rate then shows up at 321.65 USD. The total loan amount is 15,439 USD. Although online banks have better conditions in most cases, they lag a bit behind at these interest rates. An interest rate for the 14,000 USD loan is shown at an interest rate of 6.5% for the same loan amount from an online provider. The rate is higher, which is USD 330.80 and the total loan amount is increased to USD 15,878.87.
The 14,000 USD loan – the prospects
With regard to interest rates, the customer should know that most banks calculate credit ratings. If a customer receives a loan with high interest rates, the bank considers the customer to have a poorer credit rating. Different ratings can be found in the credit check from bank to bank. Of course, the interest rate is favorable if the customer has a sufficiently high income. If you have a bad Credit Bureau and maybe a temporary employment contract, then the cards are not so good. Even those who are still in the trial period can assume the same situation.
The amount of interest on a 14,000 USD loan also depends on the loan term. You can usually find the low interest rate on loans with a short term. A long loan term increases the risk for the bank that a loan default could occur. Most loans today are standardized, ie they are subject to automatic lending, which shows no scope for the customer.
The requirements are strictly regulated, as already mentioned above, this includes a sufficiently high income, a clean school and a permanent position. In addition, the customer must be of legal age and reside in Germany. The amount of income must be above the garnishment exemption limit. A single person is included with 1,100 USD net. Every additional person who lives in the household moves the limit upwards. Four people must have at least 1,800 net.
The 14000 USD loan – the conditions
The 14,000 USD loan need not have a specific purpose, it can be used for a wide variety of projects. For example, a small loan is suitable for balancing the overdraft facility. However, one should mention that the overdraft facility should only be used for a short time. It is one of the most expensive loans ever. An installment loan on the above conditions is much cheaper, the overdraft facility has a double-digit interest rate, often up to 15%.
A small loan can also be used to finance other projects such as new furniture, a car or a vacation trip. Since the loans are not earmarked, they can be used freely. With a car loan, for example, the customer should know that there are special car loans, which in turn have a low interest rate, because the bank has not only the income but also the car as security.
Anyone who has a negative Credit Bureau is excluded from conventional lending. For these customers, with sufficient creditworthiness, the Credit Bureau-free loans can bring the solution. However, no favorable interest is then calculated, and this interest rate is also in the double-digit range. Since this type of loan is mostly processed through a credit agency, the agency commission is also added.
The permanent position must of course also be available and has been for at least six months. The employment contract must not be limited and there must be no trial period.
Of course, a 14,000 USD loan can also be taken out for debt restructuring. In this way, the customer can summarize all of his liabilities in one loan and will only have one creditor in the future.
However, in the event of early redemption of loans, it should be noted that banks can calculate a prepayment penalty. In the past, they were so high that debt restructuring no longer paid off. But after a court ruling, banks are only allowed to charge up to 1% of the remaining loan amount as their default.
The credit comparison
Before making a loan request, the customer should know whether he can afford a loan at all. If you look at the rates of around 330 USD, that’s not a cardboard handle that has to be applied monthly. Here it is possible to find out by drawing up an income / expenditure plan. If there is a plus, the 14000 USD loan could be applied for.
Of course, the customer has to prove a corresponding creditworthiness in the form of an acceptable income. The customer should know that banks want to be sure that the borrower can also repay the 14,000 USD loan. Those with a low income have bad credit cards. Here there would be the possibility to look for a bank that has a high acceptance rate. In addition, the lack of creditworthiness could also be compensated for with a second borrower.
If you consider that with a 14,000 USD loan with a term of 72 months there is a rate difference of 243.46 USD and 256.93 USD, which is an interest rate of 8% to 10%, it is definitely worth a loan Conduct comparison.
The customer can then choose a cheap provider and submit his loan application directly via the comparison. But it should be noted here that the interest shown is not available for every customer. Here too, the interest rate is based on income and general creditworthiness. If the customer has a good credit rating, he will also receive a favorable interest rate and vice versa.
The 14,000 USD loan can be taken out at the house bank or at an online bank. Experience has shown that online banks show better conditions. The customer should not only pay attention to the interest rate, but also look for free special repayments. One or two rate stops per year should also be included in the loan agreement.
Rate stops because a financial bottleneck can always appear during the credit period, which may then be compensated for with two rate stops.