In the case of an on-demand loan, a bank provides you with a line of credit that you can use variably. The credit line denotes the maximum limit of the capital framework. The repayment takes place monthly. The interest rate is variable. The call loan is an alternative to the overdraft facility.
An annuity loan is a repayment loan. The monthly rate is therefore made up of an interest and a repayment part. However, the repayment rate is the same over the entire term. Since the interest portion of the repayment also decreases over time due to the falling remaining loan amount, the repayment portion increases. If the loan amount is repaid in full at the end of the term, this is also referred to as a full repayment loan. Often, however, there remains a residual debt that has to be paid in one go. As a borrower, you usually have the option of follow-up financing.
Home savings loans are granted in the course of a building society contract. If you would like to save money for a house with a home savings contract, you can initially negotiate an optional home loan that you can use after a certain saving period. The interest is fixed when the building society contract is agreed, so that you can secure cheap interest. The home loan is a repayment loan.
In addition to a home loan, a forward loan is also a way to secure favorable interest rates for a future loan contract. However, the savings phase is omitted here. The forward loan is also used for real estate financing and can be concluded up to 60 months in advance. After this so-called forward period, the loan amount is paid out and the actual contract begins. A distinction is made between fake and real forward loans. In the case of a fake forward loan, the interest rate fixation begins immediately after the agreement, whereas in the real one it only begins with the payment of the loan amount.
Real estate loan
The real estate loan is a type of loan with a specified purpose. As the name suggests, this is real estate. Due to the collateral for the bank associated with the property, real estate loans have very low interest rates compared to the general interest rate level. Due to the mostly high loan amount, the term of real estate loans is very long, often 20 years or more. Real estate loans are part of real estate or construction finance.
The participatory loan is a long-term loan for companies. Instead of interest, the lender receives shares in the profit or turnover. A smaller interest component is also possible. The contracting parties negotiate the content and are relatively free to design it. Due to this nature, the participatory loan is similar to a silent company, but without the merger into one.
The installment loan is a sub-form of the repayment loan. In contrast to the annuity loan, however, the monthly rate drops here. The repayment portion remains the same, while the interest portion falls. This means that the loan amount can be repaid quickly, but at the beginning the monthly installments are a greater burden than with a decreasing term. Installment loans are therefore mostly used less for real estate, but rather for the financing of motor vehicles or consumer goods.
The repayment loan is the generic term for the types of annuity loans and installment loans. In the case of a repayment loan, a loan amount is lent that is repaid over a fixed term using a repayment payment. The monthly installment consists of the repayment and the interest component. The counterpart to the repayment loan is the final loan.
A full repayment loan is an annuity loan in which the loan is repaid in full at the end of the term. The monthly rate remains the same over the entire contract period, but is higher than with a conventional annuity loan. For you as a borrower, the monthly installments for a full repayment loan are higher. However, interest rates are lower because the bank has greater certainty about repayment. This reduces the overall interest burden.