An online loan without a processing fee is characterized primarily by the fact that the annual percentage rate and the nominal rate are approximately the same. If this is not the case, the customer could assume that the bank would charge a processing fee and possibly also an account management fee during the entire term.
Compare online credit with no processing fee
Even if it is clearly recognizable that the bank waives a processing fee, the customer should compare the individual offers exactly. Otherwise, it could happen very quickly that he would also have to pay relatively high interest rates for an online loan without a processing fee. In this case, the bank would incorporate the costs of the processing fee into the nominal interest. However, such a loan would be easy to spot. To do this, it would only have to be compared with other loans with the same term and with the same loan amount. If the interest for an online loan without a processing fee is too high, the customer should rather refrain and look for better alternatives.
Apply for online credit with no processing fee
Anyone who has found a good online loan without a processing fee could apply for it online at any time. This has a number of advantages. It would be particularly worth mentioning that the customer is not bound by the bank’s opening hours. As soon as the loan application has been received by the bank, it is checked immediately and, if it has a good credit rating, is usually approved very quickly. Now nothing stands in the way of a payment.
After just a few days, the customer could have the entire loan amount. He is not bound by the purpose of use. The only exception would be if it was an expressly dedicated loan, such as a car loan.
Repay online credit with no processing fee
Similar to any other loan, the online loan would have to be repaid properly and on time without a processing fee. How high the monthly installments are and how long the term is, is individually agreed between the customer and the bank. Online loans can often be redeemed prematurely or replaced by other loans. Further details are regulated in the loan agreement.
If you fall behind in paying one or more credit installments, you should definitely contact your bank. Otherwise, there are serious consequences, which could lead to the termination of the loan, whatever would be associated with a negative Credit Bureau entry. The consequences of this are serious. In this way, the customer could no longer receive an installment or overdraft facility from any reputable German bank.