Installment loan with 120 months maturity
Installment loan with 120 months maturity – market offers
A 120-month installment loan will be funded by very different sources of credit, depending on the purpose. Special purpose loans are especially in demand renovation loans without land register entry. Online direct banks and local providers offer these loans. In addition to earmarking, additional loan conditions may be added to local loan offers. The regional support of local craft enterprises is often the reason for this earmarked special loan.
State-sponsored educational measures are even offered beyond the frame of 120 months as installment credit. The contact person for this is the Kreditanstalt für Wiederaufbau (KfW). In addition, local banks and online banks offer their own educational loans with similar repayment periods. Without earmarking, of course, a installment loan with a term of 120 months can also be used.
Unfortunately, not every credit provider can rely on extremely long maturities for ordinary installment loans. The maximum maturities usually vary between 60 months and 84 months. Only a few online providers allow credit for more than 10 years.
What to look for in long-term financing?
Extremely long-term financing is always used to bring rates down to a level that seems affordable. Basically a reasonable solution. Rescheduling loans are a common reason for looking for long funding periods. In addition to the security of really being able to afford the installments, another aspect should be considered.
Over a period of 10 years nobody can seriously predict the future. At the moment, key interest rates are in a historic low-interest-rate phase. Trusting that interest rates do not rise, or only moderately, is dangerous. Variable interest rates can quickly lead to over-indebtedness. There has been sufficient evidence of this in the past.
For a loan with a term of 120 months, initially only interest is paid. The repayment rate is low. Already a small increase in key interest rates inevitably leads to rate adjustment. Therefore, long-term funding should always be locked out at fixed rate with fixed interest rates until maturity.
Credit offers with a slightly lower credit rating
The rescheduling of existing loan commitments is not always done voluntarily. Often, the burden of the many rates bags the household budget. A rescheduling could provide relief, but the existing installment obligations, the credit rating has also fallen. A normal 120-month loan is not approved by ordinary credit providers.
In these cases, the offers of reputable credit intermediaries help to create a long-term debt restructuring loan. Crediter advertises even explicitly with the offer of the 10-year term for installment loans. Alternatively, the offer of commercial credit providers can be turned their backs. A installment loan with a term of 120 months is also offered by private lenders via the private loan portals.