According to Section 1 (1) sentence 1 KWG, a credit institution is a company that does commercial banking.
The EU tightens the concept of a credit institution and means only companies that accept deposits and repayable funds and grant loans.
Credit institution – groups and goals
There are four groups of credit institutions in Germany that offer private or public law loans on divergent terms and thus naturally pursue different goals.Above all, private credit institutions want to generate a high profit. The situation is generally different for public law and cooperative credit institutions.
At these institutes, the wishes of the customers and their fulfillment are mostly in the foreground. Private credit institutions borrow large sums of money very cheaply and lend them on high terms. The interest margin is very high. Public law and cooperative credit institutions have a lower difference between interest expenses and interest income.
Bank – simply compare online
Consumers can compare the individual credit institutions free of charge using a financial calculator on the Internet. This is particularly worthwhile if you are interested in a real estate or construction loan.
After a few seconds, the cheapest loan offer will be shown to future borrowers. Only a few details have to be entered into the financial calculator to calculate the cheapest loan and the right bank, including:
- the amount of the loan you want
- the period
- the use (e.g. debt rescheduling, new vehicle, vacation, mortgage).
When comparing credit institutions, it depends on whether the future borrower has an excellent credit rating. Only then can particularly good conditions be offered by the credit institutions. If borrowers are interested in a loan without Credit bureau, higher interest and fees must be expected.
Loans without Credit bureau – possible with some banks
Some banks offer loans without Credit bureau information. This is particularly worthwhile for borrowers who have negative Credit bureau entries.
But consumers who always pay their bills on time can also get an offer for a Credit bureau-free loan from a bank. Since the approval of Credit bureau-free loans will not be forwarded to either Credit bureau or the house bank, borrowers can continue to expect a very good score in the future.
- The conditions of a loan must be checked urgently, otherwise it can quickly become expensive for the borrower. The interest, fees and all special requests of customers can have a negative impact on the loan. Therefore, a comparison of the credit institutions and the credit conditions is highly recommended.
Conclusion on the topic of a credit institution
A credit institution offers loans, securities and cash investments. The conditions of the individual credit institutions often differ significantly. By comparing the credit institutions, consumers can benefit. Some credit institutions also offer loans without Credit bureau.