Even if the interest rate level for private borrowers has been low for years, there are still many loans with savings potential. It is worth doing the arithmetic in particular on loans obtained before 2014, because the key interest rate issued by the European Central Bank has been only 0.0 percent since that year. Before that, it was more expensive to borrow money, and therefore there was a lot of interest on personal loans. So take advantage of the opportunity to replace an old loan with a rescheduling loan and save interest.
Contents of this article:
When is a rescheduling loan useful?
Looking for a cheap rescheduling loan:
It is also recommended that many existing loans be rescheduled for a new one in several ways: Not only is one existing loan (compared to many) much easier to keep track of for you – the summary also has a positive impact on your creditworthiness. If there are several existing loans on your Schufa file, your score is worse than if only one loan was registered there.
Check the early payment fine in advance
The loan is always taken for a fixed period. This way you will know how long you will pay the loan and the amount of remaining debt that will eventually be due. At the same time, the bank also has a security layout and calculates the interest accordingly. If you reschedule a loan and pay it off early, the bank will at least partially lose interest payments. To compensate for this financial loss, there is what is known as an early repayment penalty – a certain amount that you have to pay the bank if you pay off the loan in full early.
Good to know: The bank is not allowed to design this amount of compensation any way it wants – at least not with new loans. For all loans obtained after June 11, 2010, the prepayment penalty may be up to a maximum of one percent of the remaining debt. With credit periods of less than twelve months, only 0.5 percent. If you have an older loan, take a look at the general terms and conditions or your contract documents to see what is written there on the subject of compensation. In the ideal case, no advance fine is required at all.
If you plan to reschedule the loan, please also note possible notice periods. These are also described in the contract documents.
Get a loan to reschedule: here’s how
If you want to reschedule one or more loans, comparison portals like Verivox give you the best possible support: you can not only get and compare different loan offers, but also use a rescheduling calculator with which you can easily calculate your savings potential yourself. Specifically, you take the following steps when rescheduling:
First, identify your new loan needs. To do this, find out your remaining debt – you can find it in the repayment schedule for your existing loan or ask your bank directly – and add the prepayment penalty, if necessary.
Advice: You can also use a rescheduling loan to increase the loan amount. To do this, simply add the additional capital you need to the remaining debt and offset.
Enter the desired amount, term and intended use in the comparison calculator. Important: Be sure to select Debt Rescheduling for the latter so the bank understands that it’s replacing an existing loan and not an entirely new one. This has a positive effect on your creditworthiness and interest rates.
Receive individual offers
After submitting the form, you will receive several non-binding offers for your new loan. If you are interested in one or more offers, please provide some personal data in the next step. This includes both basic data such as your address, as well as information about your financial situation. These are necessary so that the lender can offer you a binding loan offer at an individual interest rate.
The bank’s job of providing short-term insight into online banking is particularly convenient: your financial situation is automatically analyzed and assessed so that you have a binding acceptance or rejection of your loan application within a few minutes. Of course, it is also possible to submit the financial evidence “manually” – and then plan more time for the loan application.
If one of the offers suits you, the loan can also be obtained entirely digitally or in the traditional way by mail. Convenient: Once you make a decision on a new loan, the lending bank usually takes over the replacement process. Specifically, this means that the new bank agrees to an alternate date with the previous lender and eventually transfers the remaining debt to the bank on the scheduled date at this time. Then the rescheduling is complete.
Additional hint: Before it comes to rescheduling, it may be worth contacting your previous bank with the appropriate offer and renegotiating the terms. If your bank wants to keep you as a customer, they may also offer you a new or modified loan.
Rescheduling of allotted loans
- Auto Finance Rescheduling: A case that is still relatively simple is car loan rescheduling. Special deadlines are usually not taken into account here. But: as a rule, the vehicle registration document (registration certificate Part II) is deposited with the lending bank as a guarantee. So do not forget to retrieve it from the previous provider and hand it over to the new bank.
- Real estate loan rescheduling: Usually it is not easy to reschedule a construction loan. On the other hand, because the mortgage loan amount often exceeds the maximum installment loan amount. On the other hand, because the fixed interest rate set also determines the term of the loan. During this period, the bank has to agree to reschedule only if there is an “important reason” – for example selling the property. In all other cases, the consent is voluntary and the amount of the early payment penalty can be freely determined. So if you want to reschedule a mortgage, talk to your bank in advance and let them advise you.
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