The credit lexicon
An assignment of a land charge is an important step in home financing. When a land charge is assigned, the land charge is transferred from one bank to another. This usually happens when the existing real estate loan is moved to another bank, for example, because a more favorable financing offer was found. The assignment of the land charge takes place in ... Read more
The term of a loan is an important factor that determines the duration of the repayment of the borrowed amount of money. In a contract under the law of obligations, such as the loan agreement, the term is specified in a binding manner. However, this may differ depending on the borrower's financial situation. A longer term enables the borrower to repay the loan amount in smaller installments, while a shorter term results in higher monthly installments.
A credit rating provides an assessment of a debtor's creditworthiness and the likelihood that it will repay its payments on time and in full. There are both internal and external credit ratings. Internal credit ratings are prepared by the bank itself, while external credit ratings are prepared by independent rating agencies. The latter are used to assess the credit risk of a debtor for potential creditors and investors. External credit ratings can also facilitate the issuance of bonds and other debt instruments.
The mileage contract in leasing is a safer form of contract for the customer. This is because by specifying the mileage at the beginning of the contract and billing at the end of the contract on the basis of the actual kilometers driven, the customer is protected from unexpected costs. In addition, he is freed from the risk of the used car market, since the mileage is fixed in advance. Thus, with a kilometer contract, the customer knows in advance the costs incurred for car leasing eganua, which greatly facilitates planning and control.
Annual performance is a term used in the financial world to describe the cost of a loan. It is an important factor to consider when deciding on a loan. The annual benefit includes both the interest and the repayment of the loan. It can be calculated in several ways, depending on the type of loan being taken out.
In the case of the adjustment of conditions or the adjustment of conditions for loans, the conditions for the granting of the loan are determined between the borrower and the lender on the basis of the end of the fixed interest period. This is necessary because the conditions on the capital market are constantly changing and therefore the conditions for loans must also be adjusted.
The fixed interest period is the period for which the conditions of a loan are fixed. However, the fixed interest period often ends before the end of the term of the construction loan, which makes it necessary to redefine the terms of the loan.
The lender, usually a bank, makes an offer for a further fixed-interest period a few weeks before the fixed-interest period expires. This offer is based on the current conditions on the capital market and can include both higher and lower interest rates. The borrower should consider negotiating this offer in order to obtain the best possible conditions for the further loan.
Contacting the bank to adjust the conditions is not always done automatically in time. When the fixed interest rate expires, the borrower should request an offer from the bank. Here, the borrower should act in time to not miss the adjustment of conditions. Finally, the borrower needs some time to get other ANbgebote other banks if necessary.
The mileage of a vehicle is a key indicator of its value and condition. It indicates how many kilometers the car has covered since it was manufactured and is therefore an important factor in assessing the vehicle. In the car leasing and financing sector, mileage plays a crucial role in determining the total number of kilometers a vehicle is allowed to travel during the contract period. High mileage can increase the risk for the lessor, as it indicates that the vehicle has been used frequently and thus shows greater wear and tear.
A legitimation check is a procedure in which the identity of a person is verified. This is often carried out when opening a bank account, applying for a loan or issuing a passport. In order to perform the verification of identity, certain documents are required to confirm the identity of the applicant. These documents are verified by an authorized body, such as a bank or a notary. The legitimation check is required by law to prevent fraud and money laundering.
The transfer value is the amount you pay if you want to take over a leased object before the end of the term. This amount is usually too high for you to pay out of your own pocket. Therefore, for a permanent purchase, it is advisable to use credit financing, which allows you to buy the vehicle immediately. The term ... Read more
The purchase obligation is a contractual clause that is included in every loan agreement. It states that the borrower undertakes to take out the loan or have the installment loan paid off within a predefined period of time. The contract also contains the rules of repayment. The obligation to purchase, states that the borrower undertakes to repay the loan in ... Read more
A finishing house is a type of prefabricated house that requires the buyer to do the rest of the interior work themselves. This can be a cost-saving option, but it also requires craftsmanship and the ability to hire or employ skilled labor. Finished homes can be purchased in various stages of completion, from a shell to a nearly finished ... Read more
The disbursement amount is the amount of money that is actually disbursed to the borrower. As a rule, the disbursement amount of a loan is less than the loan amount. This is the case because any fees or, in some cases, interest incurred are typically deducted as a so-called disagio or damnun. The discount thus corresponds to the difference between the nominal amount of the loan and ... Read more
Disbursement (value date) is the process of transferring money from one person to another. This can be in the form of transfer to the recipient's account, checks or cash. In credit, disbursement occurs when a consumer has applied for credit and submitted all required documentation to the bank. These documents ... Read more
An employer loan is an amount of money that the employer provides to the employee at comparatively favorable interest rates. This loan works similarly to an installment loan from a bank, where the time frame and the amount of the monthly payments are contractually agreed. To ensure that the loan is not seen as wages, it is essential that repayment, interest and collateral ... Read more
Disbursement requirements are conditions that must be met before a loan can be disbursed. The bank may already approve a loan even if not all conditions have been met. The commitment is then subject to the fulfilled disbursement conditions. This saves a lot of time, as the customer can already be sure that the financing is in place when all the conditions are ... Read more
A guarantee fee, also known as surety fee, is incurred when a bank or insurance company issues a guarantee. This often happens, for example, in the case of bank guarantees as part of a rent deposit to be paid or in construction financing. The guarantee fee is usually between 0.5 and 2 percent. This means that the guarantee fee differs from the amount for loans because, unlike the loan for ... Read more
Depreciation refers to the loss or reduction in value of various assets, such as real estate. As a consumer, you can claim this loss in value for tax purposes. When calculating the annual sum of depreciation, the one-time production or acquisition costs of the object are taken and distributed over the useful life of the object. There are two types of depreciation: the ... Read more
The word "leasing" is derived from the English word "to lease". In the case of basic leasing, an asset or commodity is used for a limited period of time in return for a fee. Leasing is often used for vehicle financing as an alternative to a car loan. In companies, other equipment such as printers, copiers, fax machines and the like are also frequently leased. This leaves ... Read more
Assignment is a form of security that credit institutions often require from borrowers. If a borrower fails to pay his installments, the bank can use an assignment to secure claims against the borrower. Especially in the case of a land charge loan, the assignment of the land charge to a new bank plays a major role when changing financing. Definition: The recipient of the assignment (assignee) ... Read more
The General Loan Terms and Conditions are a binding contractual document for lenders and borrowers and therefore, in addition to the credit agreement, another important document for anyone taking out a loan or credit. They are comparable to the general terms and conditions (GTC) of online stores. In the general loan conditions, lenders such as BMW Bank, savings banks, building societies and other lenders regulate the relationship between ... Read more
Bagatelle generally means a small thing or trifle. The word comes from French and literally means: trifle, trifle. So, according to the loan providers, a petty loan is just that: a trifle. The upper limit for a petty loan is usually 200 euros. As a rule, the customer needs for the application only a small, but ... Read more
The right of tender is an important element in the leasing business. It means that the lessor grants the customer the right to purchase the asset at the end of the agreed term. However, this does not mean that the lessee is obliged to purchase the leased vehicle. The right of tender gives the lessor the right to sell the leased vehicle to the lessee. Read more
General terms and conditions (GTCs) are standardized contractual terms and conditions used by a company to define the rules and conditions governing business relationships with its customers. They may contain, for example, regulations on delivery terms, payment terms, warranties, limitations of liability and rights of return. General terms and conditions must be transparent and understandable and must not violate applicable law. In the case of loans, one often speaks of general loan conditions, ... Read more
In lending, a warning letter is a written reminder that a borrower receives from his or her lending bank when he or she violates the terms of the loan agreement. The warning letter lists the amount of the loan, the amount of the monthly payments, the interest rate, the length of time for repayment, and other fees that may apply. A warning notice is always in writing. The ... Read more
The down payment is the first partial payment on a loan. A down payment affects the total cost of the loan. If you contribute equity to the financing, the required loan amount decreases. This affects the term and the amount of interest on the loan. The smaller the loan amount, the faster the amount can be repaid and the more favorable ... Read more
Acquisition costs Acquisition costs are the expenses associated with the purchase of assets. This can be, for example, the purchase price of a car or an apartment, but also the cost of repair. In German commercial law, acquisition costs are regulated in the German Commercial Code (HGB Section 255 (1)). Acquisition costs include not only the purchase price, ... Read more
The initial APR is an important factor in credit agreements. By law, it must be listed in all credit agreements and shows the annual effective interest rate as a percentage. In the case of long-term financing such as real estate loans, the initial APR only applies for a fixed period of time, the so-called fixed-interest period. After that, the borrower has to renegotiate the interest rate or make a ... Read more
