Are you planning a major purchase or do you want to renovate your own home and are looking for a loan of 40,000 dollars? Here you will find a free and non-binding loan comparison with many cheap offers.
In addition, we present the offers of a reputable credit broker and inform you about the possibility to apply for a so-called P2P loan. Before you start a credit comparison, here are a few tips on how to get the most out of the comparison:
Would you like to finance a car with 40,000 dollars or do you need a real estate loan in this amount, for example, to finance renovation measures? Set the appropriate purpose. Some direct banks grant special-purpose loans on particularly favorable terms.
Which offer is the cheapest, at least according to the paper form?
The deciding factor is the information on average interest rates below each provider. However, the total cost is calculated using the cheapest interest rate. It is unrealistic. In the representative example, assume the average interest rate and calculate the actual charge using an interest calculator.
Many direct banks offer unit interest rates. However, these interest rates only apply to customers whose creditworthiness is better than a certain fixed limit. Customers with poorer credit ratings do not receive any credit at all or are offered a loan at higher interest rates.
Customers who have a better credit rating than the credit limit pay too much interest because the interest rate is based on the poor credit rating. Therefore, do not be irritated by the low unit interest rates and mainly consider credit offers with interest rates dependent on creditworthiness.
Pay attention not only to the amount of the effective interest shown but also to other credit conditions such as free special repayments, installment suspensions or early loan repayment without a prepayment penalty.
In addition to the offers from the loan calculator, also take into account the loans from the credit broker Good Credit and compare this offer with the one that the loan comparison provides.
40,000 dollar loan comparison with E-Money
The E-Money loan comparison takes into account most direct banks and therefore gives a comprehensive overview of the situation on the credit market. Now and then the direct banks offer exclusive interest rates that only apply if the credit request is started directly via the comparison calculator. In this case, E-Money offers another service.
The user of the computer receives an assessment of the chances of realization immediately after sending the request. If the chances are estimated at 100 percent, the comparison portal issues an award guarantee.
Many direct banks meanwhile enable video identification. The use of this procedure is optional. The PostIdent procedure can continue to be used. In addition, some banks offer a document upload via a secure connection.
A computer with a camera is required to use both. Modern technology significantly shortens the application process and speeds up the payment of the loan amount.
Allocation requirements for a 40,000 dollar loan
Applicants must be of legal age and apply for the loan in their own name. You must be a resident in Germany and have a current account in Germany. Most direct banks require a co-signer or a guarantor if the amount exceeds USD 40,000.
Most direct banks only lend to permanent employees or civil servants. Lending is not possible during the trial period. In the case of temporary employment relationships, the credit term must expire within the period.
The vast majority of direct banks do not lend to the self-employed. Formally, senior loans are possible. However, pensioners and pensioners will not have an easy time getting loans of $ 40,000 from direct banks. The specific lending requirements depend on the guidelines of the bank, which can vary considerably from bank to bank.
There are differences above all in the assessment of economic creditworthiness and personal creditworthiness, which is determined by information from credit agencies and by score values.
Taking their guidelines into account, the banks estimate the costs of living incurred in individual cases plus existing prior obligations. In addition, the attachable income must, in any case, be sufficient to ensure that the bank can secure the repayment of the loan.
For security reasons, the attachable income must be ceded. Most of the time it is a silent assignment that the employer only becomes aware of when the borrower is in arrears.
The attachable part of the labor income can be determined using attachment tables.
In order to receive a loan of over 40,000 dollars, the income must be relatively high, even if long terms are chosen.
With a term of 96 months, even with the best offer from the E-Money loan calculator, the rate is around 500 dollars.
In the case of a maintenance obligation for one person, the borrower must earn around USD 2,500 net. If there is no maintenance obligation, it is still around 1,860 dollars.
These are the amounts that are required to cover the monthly installments from the attachable income component.
The relatively high incomes required explain why direct banks typically require two applicants with income.
Applicants must provide proof of their income using suitable supporting documents. As a rule, copies of the bank statements of the past months must also be provided.
What does a 40,000 dollar loan cost?
The cost of a loan of this size depends not only on the interest rate and the creditworthiness of the applicant but above all on the loan term.
Banks naturally want to sell loans. If customers are unable to cope with the installments with reasonable terms, they swallow up loans with particularly long terms because the monthly credit rates will then be lower.
Borrowers, on the other hand, want their loan in any case and do not consider the total cost.
Example: A 40,000 dollar loan is given to a medium-quality borrower at a real interest rate of 6.5 percent. You can choose between terms of 72 months, 96 months and 120 months.
With a term of 72 months, the costs are 8,158 dollars at a monthly rate of 669 dollars, at 96 months it is 11,052 dollars at a rate of 532 dollars and at 120 months the total costs are 15,050 dollars, while the monthly rate is 450 dollars is falling.
This sample calculation does not take into account that some banks charge higher interest rates for longer terms. If this is the case, the total cost of the loan increases with the term of the loan.
Loan terms should always be based on the normal useful life of the item purchased with the loan. For this reason, terms of more than 72 months are rarely justified for normal acquisition loans.
The situation is different if 40,000 dollars are required for renovation, reconstruction or modernization measures.
Longer maturities are justified for residential and real estate loans, but then the interest rates are significantly lower.
Either the borrower chooses a dedicated home loan without a mortgage, or a mortgage is entered to secure the loan.