Final loan 2019 »All advantages and disadvantages in the test!

 In the case of a term loan, only interest is paid during the term and the debt itself is ultimately repaid in a large final installment. But that makes sense only in special constellations, for example, when a home savings contract is due. Perhaps the best known variant of the bullet loan is the Civil Service Loan.

A mitigated variant is the usual balloon loans for car loans, in which part of the debt is repaid during the term and the other is paid in a large final installment.

What is still to be considered in a bullet loan, you will find in our guide on bullet loans.

What is still to be considered in a bullet loan, you will find in our guide on bullet loans.

Officials loans. It has monthly money for the repayment of debt to be covered, but this does not flow to the bank, but in a capital-forming life insurance. The life insurance is due when the loan must be repaid, with the proceeds of the debt is repaid.

The advantage: If the debtor dies before repayment, the life insurance is also due and serves to pay off the debts. The survivors no longer have to pay for the loan.

One should not confuse the bullet loan with the regular official loan. This is simply a installment loan specifically for civil servants. Because of the high job security, the banks can offer this clientele particularly low interest rates. Such loans are offered by regular banks or special official banks.

Because even with regular installment loans, interest rates are often dependent on credit, civil servants can also get favorable conditions there. A credit comparison is therefore worthwhile for them.

Credit insurance to be completed. The protection is not always meaningful anyway.

Credit insurance to be completed. The protection is not always meaningful anyway.

Just a few years ago, interest rates were even higher. An old time deposit can therefore bring significantly more interest than a loan costs.

A bullet loan can also make sense if there is currently a good interest savings contract. For example, those who have concluded a ten-year fixed-term contract eight years ago often receive considerably more interest there than, for example, they have to pay for a real estate loan.

Quite apart from the fact that time deposit is often difficult to cancel and with high penalty interest. It is therefore better to take a bullet loan for two years, which is then paid off with the then matured deposit.

Even with Berafund contracts, a bullet loan can make sense. This is then completed, for example, for the time at which the building savings contract is due. From the Berafund sum then the house loan will be replaced. In all these cases, a bullet loan can be good and safe. It is more difficult if the money is invested in a fund for repayment or in higher-interest foreign currency accounts.

At first glance, the variant is charming, because in recent years, the profits on the stock exchanges were well above the lending rates. There are also significantly higher interest rates outside the euro area in some countries. However, a decline in stock prices or falling foreign exchange rates can quickly lead to the funds accumulated in the repayment savings plan no longer being sufficient for repayment.

Car financing, there is a similar construct, the credit with closing rate. As a rule, however, at least part of the debt must be redeemed because the value of the car decreases with age. The final rate must not be higher than the residual value. Here, too, there is, as with the bullet loan, at the end of a particularly high rate, which is usually denied here from the sales revenue of the vehicle.


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