Something urgently needs to be purchased, an invoice settled or a repair carried out? But that’s exactly what money is missing and the credit line is already at the stop or not available? Is there nevertheless a possibility to solve such a financial shortage which is possible at any time? And if so, how? A suitable solution can be a call-off loan . Because the independent credit account associated with a call-off loan is practically an external discretionary framework with which an additional financial framework is available. And the whole thing has a very decisive advantage compared to a classic credit line: a call-off loan is often much cheaper in terms of accrued interest than the credit line! But how does a call-off loan actually work?
How the call-off loan works
Basically , you get a call-off loan like any other loan, because you apply for it in the desired amount at a traditional bank. Similar to a installment loan, the bank also conducts a credit check and, if the result is positive, provides the credit line required or desired by the applicant. This provided credit line can then be fully utilized at any time up to the agreed amount. This money can either be withdrawn directly via the bank counter and the ATM cash or transferred via bank transfer to a checking account. The use of the call credit is completely free of any given use purposes or the like.
The costs and interest of a call-off loan
Application for and opening of the call-off loan as well as the provision of the call-off credit is basically free of charge. If the call-off loan is used, the interest agreed with the bank will only apply to the amount drawn and not to the entire credit line provided. The interest on the loan amount used will continue to be incurred until this sum is balanced again in the credit account. But care: Some banks require for the use of a call-off loan in addition to the agreed interest rate and a processing fee. Such offers should be avoided, because firstly, there are banks, which refrain from this and on the other hand, the call-up loan unnecessarily!
The repayment installments are not necessarily subject to appropriate regulations
Similar to the conventional credit line , the repayment of the loan taken up is basically freely selectable. So if there are no major financial resources available for repayments, you may just pay the accrued interest. But here, too, there are certain requirements for such a bank, because they demand a small minimum repayment, which can be between 10 and 50 euros per month, depending on the bank. By contrast, some institutes prescribe one or two percent of the minimum repayment. In addition, in the case of a call-off loan, it must always be borne in mind that, like the open-end loan, it is subject to a variable interest rate. If market interest rates rise, then the danger of higher indebtedness through higher interest charges increases. It is therefore important to keep in mind the applicable interest rate for the call-off loan.