Lenders have different ways to get money. They can offer customers the opportunity to open a savings account and then lend the money on them to others. Another possibility is that they borrow money from investors themselves or, for example, from the European Central Bank. This therefore also costs the lender himself, because they too must repay their loan with interest.
The risk storage
Of course, all lenders run the risk that a loan will not be repaid. To cover that risk, they charge a surcharge for each credit. So they have money behind for non-refunded loans. Sometimes lenders choose not to ask for equal interest for everyone, but to take the profile of the applicant into account in the risk analysis. Here they look at age, employment and type of home. Experience shows that in certain people the risk of payment problems is greater than in others.
The profit margin store
Credit providers are commercial companies that want to make a profit. That is why they charge an extra storage so that they can secure their profit margin.
The marketing and administration costs storage
All costs incurred by a lender are passed on to the customer. This also applies to all costs incurred in the context of marketing (advertising) and administration.
The amount of your loan
The higher the loan, the lower the interest. This is legally required, because otherwise lenders would earn more from higher loans and would probably also advise more often. Consumind Finance can ensure that the interest rate on your current loans goes down . That way you save a lot of money.