In recent years, it has become clear that taking out an online loan in Germany or Austria is becoming increasingly popular. Throughout the German-speaking world, borrowers are increasingly turning to online offers, partly because of their lower costs. However, there are often major differences between loans from German or Austrian institutions. In this article, we show what to look out for in order to get a good deal in any case.
Online loans: size of the market determines the choice
If one would like to lock a credit over Internet, then one has usually the agony of the choice. In Germany in particular, there are numerous providers for most forms of credit, which can sometimes differ significantly in terms of conditions. Austria also has a correspondingly large number of providers. But a closer look at the market reveals that the choice in Germany is significantly greater. The reason for this is that there are significantly greater opportunities for small institutions in a large market like Germany.
Quite a few people who live in Austria take a loan in Germany for this reason. Because the probability of getting a loan with ideal conditions for the individual requirements, is simply much higher here. However, one must keep in mind that in case of operational problems, which require for instance an exchange of letters, or even a visit to the respective institute, the matter can easily become complicated. However, this will rarely happen in the normal case. Because most institutions offer good online customer service, which is of course also available from abroad.
Determine creditworthiness: KSV versus Schufa
One of the key differences that can determine whether a loan is granted is the determination of creditworthiness. This is done in Germany through the Schufa, and in Austria, or for Austrians through the KSV, the so-called Kreditgeber Schutzverband. If nothing else, the data provided by these organizations to lenders is critical to the terms one receives as a borrower. If you have correspondingly poor values, the loan is usually more expensive. Also, if you have a bad Sufa (or even KSV) result, it can sometimes be difficult to get a loan at all.
If you can't get a loan in your own country, you can still try it abroad. Because some institutions then check the creditworthiness less closely.
Caution: conditions vary from country to country
One particular thing is important to keep in mind when making loan comparisons: In some cases, an institution may offer different conditions depending on the country in which you apply for the loan. For this reason, it is important to ensure that all offers in our LoanStar loan comparison are stated correctly. Because if not, you may not choose the ideal provider after all, but pay more on the bottom line for the loan.
Credit comparison: What factors to look out for?
The most important factors leading to the decision for or against a loan are similar in both countries. If you want to take out a loan in Germany or Austria, the main thing to look out for is the APR. This includes all costs incurred per year. Other factors include the possibility of changing the term of the loan, which is not infrequently associated with costs.
The most important points summarized:
- annual percentage rate of charge
- Variability in loan term (as well as fees to adjust)
- Debit interest
- Repayment terms
- Possibilities for deferral (as well as the costs incurred for this)
- Debit Interest Rate
In general, these factors probably differ little from each other, if you compare the credit institutions and their offers between Germany and Austria. However, it is generally so that in Austria, especially with regard to personal loans, mostly classic banks from Austria are still active on the market, sporadically also foreign banks. In Germany, on the other hand, there are a much larger number of alternatives for most forms of credit, which offer only loans that are available online. This indirectly means that Austrian loans often offer better customer service, as you can consult a bank branch if you have questions. Pure online credit institutions do not offer such an option. But this good customer service also comes with a disadvantage for these Austrian providers: they incur extra costs, which quite often translate into higher loan fees.
Mini-loans in Germany and Austria – what to look out for
Quickly available mini loans have been particularly popular in both countries in recent years. If you want to take out a loan in Germany or Austria, which should be available very quickly, but you have to pay attention to a few things:
First of all, you should be modest with the loan amount. Basically, the lower the loan amount, the quicker you can get this. If you apply for a mini loan, you usually only have a chance if you apply for a loan between 500 and 4000 euros. In Germany, as well as in Austria can usually be found many providers who offer online services of this kind.
Get loans faster through online providers
Overall, it can be said that both in Germany, as well as in Austria in recent years has become much easier to take out a loan. Above all, the numerous offers of online loans have ensured that they also offer increasingly favorable conditions. But of course, the very low interest rates in the euro area for several years now also play a decisive role in this regard.
Conclusion: Credit in Germany or Austria
If you want to take out a loan in Germany or Austria, you will soon see that the variety of offers in Germany is much greater. This is mainly due to the fact that Austria is a comparatively small market where it is not worthwhile for all lenders to be active.
It is also important to note that some lenders are active in both countries. Most of the time these institutions have their own rates, depending on the country they are requested from. This should be made clear especially if you have made a loan comparison. By the way, LoanStar has an independent loan comparison service that can present you with the best offers free of charge. You will receive all important information, and can then apply directly to the lender for a loan. Try our credit comparison now!