You are looking for a loan to make your dream home a reality, but you are not yet very familiar with financing issues? Do not worry! We'll explain all the relevant basic terms step by step – in the following article, we'll take a closer look at loans.
What is a loan?
A loan is the lending of capital for financing purposes. The corresponding sum must be repaid within a contractually agreed period of time. The key point here is that the loan agreement only comes into effect when the respective amount has been paid out to the borrower.
What is the difference between a loan and a credit?
Even though the two terms are often used synonymously in everyday language, the following applies: the loan is a special form of credit in which particularly high capital sums are lent and which has a comparatively long term. Unlike loans, which in Austria have a maximum term of 4 years, loans can be repaid over a period of 10 to 40 years. The volume of the amount lent naturally affects the interest rates: These are usually lower in the case of a loan than in the case of a credit, and may even be waived altogether here, so that in fact only the amount borrowed has to be repaid. Unlike loans, credit also creates a debt relationship as soon as the contract is signed. Whether the corresponding amount of money has already been transferred to the borrower is irrelevant.
What types of loans are there?
Participatory loan
One type of equity financing is the partiarisches Darlehen (also known as Beteiligungsdarlehen). With this loan, the lender usually receives no interest, but instead participates in the profits of a company. However, the agreement of interest is still possible.
Private to private
Even if you borrow large sums of money from relatives, friends or other private individuals from your environment, this transaction is a loan – or more precisely, a personal loan: The parties to the contract are two natural persons. In most cases, there is a relationship of trust between the two parties. In order to avoid legal disputes, it is advisable to draw up a loan agreement.
Loans from social services and federal states
If you find yourself in a financial emergency and are no longer able to cover basic needs, you can apply for a loan (usually interest-free) from various government agencies. Check with local social service agencies or your state's website for information on how to obtain such a loan.
Loans especially for self-employed persons
As a self-employed person, you can also obtain capital in other ways besides credit institutions: For example, through funding agencies or platforms for entrepreneurs where mezzanine capital (equity capital) is offered.
You are a young entrepreneur and not yet able to present 3 annual financial statements, which is why you are rated rather low by credit institutions? Our financial experts can help you improve your company's credit rating and get a loan after all.
Loans for the purchase of real estate
In most cases this is provided by a credit institution, in rarer cases by natural or legal persons. The property for which the loan was requested serves as collateral for the lender. Nevertheless, you should ideally cover 30, or at least 20% of the purchase price with your own capital. Another small tip: With our loan calculator you can see before a consultation appointment, which costs will be incurred in a financing approximately.
Still questions? Ask miracl!
Getting a first overview in the thicket of loan forms can be frustrating! All the more so if you hardly find the time in your hectic everyday life to deal with this topic in detail. We know this all too well ourselves! That's why we at miracl offer you the greatest possible flexibility: with personal online consulting. Our financial experts will assist you in all phases of the real estate purchase process. So you also get a loan, we do not lean too far out of the window!