For whom are loans with negative interest worthwhile?

Loans that do not have to be paid in full for the borrowed amount on repayment are currently in great demand. Some providers of so-called loans with negative interest rates currently outbid each other by the best interest rate. But is such an offer really worth it for customers?

It sounds tempting at first: take up a loan of USD 1,000 and repay only USD 950. However, as with any other loan, consumers have to prove the appropriate creditworthiness in the loan application process in order to obtain attractive conditions at first glance.

Two hurdles come into play in the run-up, on the one hand the loan offer is mostly aimed at people with good creditworthiness and on the other hand the loans with negative interest are small loans of up to USD 1,000 that are repaid in short terms of 12 months, Credit-worthy consumers will rarely have an actual need for credit over such small amounts of credit.

In addition, every loan granted is saved by Credit bureau and thus also has an impact on the creditworthiness of the consumer via the so-called Credit bureau Score. How do you think it looks like if you get a new mini loan annually at negative interest rates just because you don’t have to pay back the entire loan amount ?

Trick 2: allow access to the account when applying for a loan

Trick 2: allow access to the account when applying for a loan

Consumers who want to take out a loan with negative interest rates carry out the loan application process with the relevant provider. The loan application for these special loans is almost always possible online or mobile in just a few minutes. There is a small peculiarity in the application process, because with some providers of such loans potential borrowers give the provider an insight into the digital salary account.

This enables the credit provider to reliably assess the creditworthiness of the consumer in just a few minutes. However, one or the other will be a little different if he is to allow access to the account.

Online loan completion possible in a few minutes

Online loan completion possible in a few minutes

A so-called legitimation process is also carried out for each credit transaction, in which the future borrower identifies himself with an official identification document, for example via a chat via webcam. With the providers of loans with lower repayment, such legitimation takes place within a few minutes, which means that after a successful loan application and with a suitable credit rating, the loan decision and payment are quicker.

Nevertheless, think carefully about whether you really need such a loan and do not simply take advantage of it because of the favorable conditions. In any case, there are enough alternatives to cheap loans, especially for customers with good credit ratings, so compare the current conditions here with us.

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