What is the percentage of the repayment of the personal loan

Repayment

General

The lender is obliged to provide the borrower (in the case of a loan agreement with a fixed term) free of charge at his / her request and at any time during the loan term Repayment schedule to provide.

The repayment schedule must state which payments are to be made at which intervals and which conditions apply to these payments. In this list, the individual periodic repayments must be broken down by loan repayment, interest and any additional costs. In the case of a loan agreement with a variable interest rate, it must be stated in the repayment schedule that the data is only valid until the next change in the borrowing rate.

Installment credits

With an installment loan, the loan amount and the loan costs can be repaid by paying monthly loan installments. These regular payments will be too Annuities called.

The loan installment consists of the interest servicing and capital repayment components. The interest service shows what amount or percentage of the loan installment is used to pay the interest due. The capital repayment portion is that part that is available for repayment of the loan amount.

The loan interest is calculated based on the outstanding loan amount. Since this decreases during the term of the loan, the amount of the loan interest also decreases. As the loan term progresses, the interest component in the loan installment steadily decreases, while the capital repayment component increases.

Bullet Loans

For bullet loans, only the loan interest is paid during the loan period. The loan amount paid out is repaid in one go at the end of the term. The loan security is usually guaranteed by a repayment vehicle (e.g. a securities fund or insurance). The repayment vehicle risk, i.e. the indefinite development of the repayment vehicle, must be taken into account.

Late payment

In the event of payment difficulties, i.e. if a loan installment cannot be paid on time, the bank should be contacted immediately. The financial situation needs to be clarified. The loan conditions can possibly be adjusted, e.g. the loan installment can be reduced and the term extended, loan installments deferred or loan interest reduced.

Outstanding loan installments, dunning fees and default interest should be paid as soon as possible. Otherwise, these can be added to the outstanding loan amount, i.e. loan interest would also have to be paid for these costs.

Danger

With certain credit agreements, it is possible that in the event of default in payment, all outstanding partial payments will be made due. A so-called loss of deadline occurs. This situation can arise with a corresponding contractual agreement if the payment of the loan installment has not been made for at least six weeks and a reminder including the setting of a grace period of at least two weeks has remained unsuccessful.

early repayment

As a rule, loans with variable interest rates can be repaid early at any time without additional costs. The early repayment of the entire loan amount including interest constitutes a termination of the loan agreement.

For loans with a fixed interest rate, an amount of 10,000 euros can be repaid annually at no additional cost. If the amount paid is higher than 10,000 euros, a maximum of 1 percent of the amount repaid early may be offset against additional costs.

In the case of mortgage-backed loans, it is permitted to agree a notice period of up to six months or until the end of any fixed interest period. If the early repayment is made without observing this notice period, an early repayment penalty can be agreed or offset, but this may not be higher than 1 percent of the amount repaid early.

Related Links

Early repayment (→ BMSGPK)

Legal bases

Last updated: February 18, 2021

Responsible for the content: Federal Ministry of Justice