The financial scope can be easily increased by various consumer loans:
With an installment loan, wishes and necessary purchases can be financed even if the account balance does not allow it and for itself. As a rule, a consumer loan is associated with regular monthly payments shortly after it is paid out, which consists of the repayment of the loan and its interest. Relatively new is the possibility of entering into liabilities with so-called call loans, which are not repaid for an indefinite period of time. Rather, the borrower pays only the interest on the loan amount.
For example, Metabank offers a payday loan facility of between 5,000 and 25,000 usd, which the owner can flexibly use (as of September 2008). It can be accessed via the funds by transfer to a reference account, usually the current account at the house bank. The loan agreement does not stipulate a prescribed repayment: only nominal interest of eight percent on the amount drawn must be paid. Interim repatriations of the framework are, however, possible at any time the interest burden will be reduced accordingly.
The trend for loans without scheduled eradication comes how could it be otherwise from the US.
The loans are suitable for different purposes.
On the one hand, the flexible framework can provide a financial reserve if it is not available by other means. In addition, other loans, such as dispositions or credit card balances, can be replaced by such a commitment. At this point, however, there is also the greatest danger potential hidden: Due to the elimination of repayments, some consumers may be tempted to borrow more than their own circumstances.
Despite the potential risk, offers such as Metabank represent a valuable addition to the existing product landscape. In particular, the clear difference between the debit interest on a call-off loan and conventional disposition credit offers room for savings: the eight percent raised by Metabank Compared to the debit interest on the overdrafts of many current accounts are extremely favorable and are also compared to other forms of credit, such as dealer financing or partial payment on the credit card, very favorable.