Credit with 240 months term – 10 years fixed interest.
A loan with a term of 240 months is not one of the types of loans that are permanently requested.
Because a term of 20 years is only sought if a very large loan amount must be paid.
When is a 240-month loan interesting?
240 months duration means that a repayment over 20 years is desired. A very long time in which a lot can happen. Both privately and financially, there can be changes that can affect the loan. Therefore, a 240-month loan will only be taken if it is really necessary.
Such a loan would be possible, for example, when financing a property. If $ 1000000 and more are borrowed from a bank, they will not be repaid within a few years. It must rather pass some time, so that the debt can be completely repaid. 20 years would be a perfectly conceivable time span.
Even companies are always interested in large loan amounts for investment. Not infrequently, a long repayment is targeted. How it works depends on the conditions that are met with the bank. It is important that they are flexible, so that the repayment is associated with a low default risk.
Which conditions should be given?
For a 240-month loan, it is very important that not only does the borrower’s credit rating match, but also the terms offered by the lender. First and foremost is the possibility of free debt restructuring. This must be possible after a few years.
In most cases, the lender also submits a new offer in this context. It is therefore not absolutely necessary to change the lender when rescheduling. Also important would be free special repayments. In the case of real estate loans, building loan agreements are often signed in parallel and will be used to repay a partial debt at maturity.
This reduces the loan amount suddenly by several thousand euros and the interest burden is lower. Worth doing such a step, however, only if this has been agreed in advance.
Also, payment pauses are now increasingly offered. These can be useful if it does not look financially good once. Who can suspend a monthly installment without consequences, can use the so saved money for other projects and does not come into financial difficulties. This is very important for large loans with a very long maturity.
Who awards a loan with 240 months duration?
Last but not least, there is the question of who ever forgives a loan with such a term. If you look on the internet and use credit calculator, then it’s usually 10 years old.
Loans over 10 years are special loans that can not be easily requested via the internet. There are not many banks that engage in such long repayment phases. However, this is usually done by building societies and banks that specialize in real estate.
In addition, banks, which are very well positioned in the business customer segment and see their main field of activity therein. Worthwhile it is to catch up in advance, some exploration, who would provide the needed money at all. Afterwards you can get in contact with the respective donors and discuss the details.