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Annuity loan calculator

With our free annuity loan calculator you can calculate possible conditions for your annuity loan . This will give you an initial impression of the interest costs and the monthly installments. Carry out as many sample calculations as you like and determine the appropriate key data for your financing before comparing loans. Your personal repayment plan will be adapted to your information. You can then request specific offers without obligation via our online application.

Monthly Rate
Loan amount
Duration
30,000
500
120,000
84
12
120
3.6
0.68
10
304.84
50
3,000
84
12
120
3.6
0.68
10
30,000
500
120,000
304.84
50
3,000
3.6
0.68
10
33,983.33
3,983.33
404.56
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Repayment plan
YearInstallment payment paInterest costsRepaymentBalance
14,924.661,080.003,844.6626,155.34
24,924.66941.593,983.0722,172.27
34,924.66798.204,126.4618,045.81
44,924.66649.654,275.0113,770.8
54,924.66495.754,428.919,341.89
64,924.66336.314,588.354,753.53
74,924.66171.134,753.530

Annuity loans simply explained

The importance of the annuity

The term annuity is derived from the Latin word „annus“ for „year“. The annuity indicates the amount of the repayment rate and is made up of a repayment and an interest component. Both components are contractually agreed in advance for annuity loans. This ensures the greatest possible planning security for repayment.

Therefore the annuity remains the same

The amount of the annuity is fixed from the start. At the beginning of the term, the interest portion of the annuity is still high. As the amount on which interest must be paid decreases over time, the interest portion also decreases. The repayment portion increases accordingly, so that the amount of the annuity remains the same. This helps you to realistically assess whether you can actually afford the purchase.

Use of annuity loans

For larger loan amounts and therefore larger purchases, annuity loans are often taken out due to the planning security. A popular use is real estate or construction financing. Here, long-term planning security is particularly important due to the high loan amount. Renovation and conversion work are also often financed with annuity loans. But this form of financing is also suitable for buying a car.

Difference to installment loan

Installment loans and annuity loans differ primarily in their intended use and term. An installment loan can be taken out for any purchase, even with a short term, for example for car financing. Annuity loans, on the other hand, are often taken out for long-term financing such as construction projects or the purchase of a property.

Online application in 3 steps

From data entry to credit approval in just a few clicks – that’s what our online application offers you. Here’s how to do it:  

Conditions request

First, enter the key data of your desired annuity loan so that we can request the conditions for you. Unlike a loan request, this has no effect on your SCHUFA score. Simply enter the desired loan amount, the purpose and the term in the online application. You can also specify whether you would like to take out the loan alone or with someone else.

Compare annuity loans

After filling out the form, you will receive your personal loan offers. Take your time to look at the details and decide which offer suits you best. Once you have decided on an offer, you can easily apply for it from home – conveniently from your laptop, tablet or smartphone.

Conclude a loan agreement

In order to apply for your desired annuity loan, you send all the necessary documents to the lending bank. The quickest way to do this is to upload documents. In addition, your details and your identity must be verified. Legitimation can be done either via video identification or post identification. If all the details are correct, all conditions are met and the documents are complete, the payment can ideally be made within 48 hours of approval.

Interest and repayment on annuity loans

The special feature of interest and repayment in annuity loans lies in the structure of the monthly repayment installments. Part of the installment covers the loan interest, with the interest portion being higher at the beginning of the term and decreasing as repayment progresses. The other part is used to repay the loan, with the repayment portion increasing over time. Despite these changes, the monthly installments remain constant, which is known as annuity. In the following graphic you can see how the interest and repayment portion changes over the term of the loan.

Calculate annuity loans using a formula

The annuity is the monthly rate calculated based on the annual repayment rate, so it is the annual repayment rate divided by 12. You can use the following formula to calculate the annuity for your loan:

Example calculation

The following example calculation for an annuity loan is intended to show you how the repayment of such financing can be structured. Let’s assume you decide on an annuity loan of 10,000 euros. The interest rate is 5 percent and you want to repay the loan in five years. If you calculate the annuity using the formula, you get a value of 2,309.75 euros. This amount is divided into twelve equal monthly installments of 192.48 euros each. Each year, a constant 2,309.75 euros is therefore paid, i.e. 192.48 euros every month. At the end of the fifth year, the loan is fully repaid. In total, you pay back 11,548.75 euros including interest costs. The interest portion of the loan is therefore 1,548.75 euros over the entire term.
Year Net loan amount Duration Effective interest rate Monthly Rate Interest costs Repayment Balance
1 10,000 € 60 months 5% 192,48 € 500€ 1,809.75 € 8,190.25 €
2 10,000 € 60 months 5% 192,48 € 409,51 € 1,900.24 € 6,290.02 €
3 10,000 € 60 months 5% 192,48 € 314,50 € 1995,25 € 4,294.77 €
4 10,000 € 60 months 5% 192,48 € 214,74 € 2,095.01 € 2,199.76 €
5 10,000 € 60 months 5% 192,48 € 109,99 € 2,199.76 € 0 €

How an annuity loan works

With an annuity loan, you pay back the loan in equal monthly installments. The interest portion decreases over time, while the repayment portion increases. This is how the loan works:

Determine repayment and fixed interest rate

At the beginning, you determine the amount of the initial repayment and the fixed interest rate.

Calculating interest rate and monthly rate

The lending bank calculates the interest rate for the annuity loan based on various conditions such as your credit rating and the market interest rate. A fixed monthly rate is also agreed, which you pay back over the entire term of the loan.

End of the fixed interest rate

After the fixed interest rate period has expired, there is often a residual debt that you can pay off as part of follow-up financing. Refinancing your annuity loan is also possible.

Refinancing your annuity loan

Refinancing an ongoing annuity loan involves switching to a new lender or adjusting the terms with the existing lender. Before you decide to refinance, you should compare the interest rates and make sure that the new terms are more favorable. Also take into account any costs that may arise, such as early repayment penalties, and check whether the term or repayment can be adjusted. Refinancing or follow-up financing is also possible after the fixed interest rate period of your existing loan has expired.

Requirements and documents for annuity loans

requirements

When granting a loan within Germany, certain requirements must be met. To apply for an annuity loan:

Documents

In order to determine whether you meet the requirements, banks request the relevant documents. Exactly which documents are required can vary depending on the lender. As a rule, these documents must be submitted:

Reasons for mcmoney

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The smava loan comparison has no influence on your Schufa score. With smava you can compare loans without any obligation.

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If you have any questions, please feel free to contact our credit specialists. You can reach them Monday to Friday from 8 a.m. to 8 p.m.

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More than 20 partners and banks cooperate with smava. Thanks to the large selection, you can find particularly cheap loans.

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smava specializes in low-interest loans and has been providing low-interest loans to consumers and businesses since 2007.

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In the past, smava has been recognized as the best credit portal and fairest credit provider, among other things.

Get a cheap loan quickly

Fast

With smava’s loan comparison, you can get an overview of cheap loan offers in no time.

The smava loan comparison has no influence on your Schufa score. With smava you can compare loans without any obligation.

The smava loan comparison has no influence on your Schufa score. With smava you can compare loans without any obligation.

The smava loan comparison has no influence on your Schufa score. With smava you can compare loans without any obligation.

The smava loan comparison has no influence on your Schufa score. With smava you can compare loans without any obligation.

The smava loan comparison has no influence on your Schufa score. With smava you can compare loans without any obligation.

The smava loan comparison has no influence on your Schufa score. With smava you can compare loans without any obligation.

The smava loan comparison has no influence on your Schufa score. With smava you can compare loans without any obligation.

The smava loan comparison has no influence on your Schufa score. With smava you can compare loans without any obligation.

The smava loan comparison has no influence on your Schufa score. With smava you can compare loans without any obligation.

The smava loan comparison has no influence on your Schufa score. With smava you can compare loans without any obligation.

Advantages and disadvantages of an annuity loan

Advantages Disadvantages
The detailed repayment plan gives you as a borrower a concrete overview of your payment obligations and therefore planning security. Depending on the contractual agreement, the annuity loan may not have been fully repaid at the end of the term. In this case, there would be a remaining debt.
There is low risk for both borrowers and lenders. If you take out additional financing to pay off the remaining balance, you may incur higher interest rates.
Annuity loans can be repaid more quickly than other loans. A long fixed interest rate can be a disadvantage in times of falling interest rates. The fixed interest rate indicates the period for which a certain interest rate has been agreed between the bank and the borrower.
If the interest rates for a new financing are higher after the end of the fixed interest period, they only apply to the remaining amount.

What our customers say

What you should pay attention to when concluding a contract

Compare annuity loans

Before taking out an annuity loan, it is important to compare different loans . This way you can find a favorable interest rate and minimize the overall costs. The term, monthly installments and flexibility vary from provider to provider. It is therefore important to adapt the conditions of the annuity loan to your own requirements. The loan comparison takes into account the total cost of the loan as well as special repayment options and creditworthiness requirements. This gives you planning security and tailor-made financing that meets your own needs.

Note the interest rate fixation

In addition to a careful comparison of annuity loans, it is advisable to consider the interest rate fixation period depending on the current interest rate level. When concluding a contract during periods of high interest rates, a relatively short interest rate fixation period is recommended. The idea behind this is that there is a high probability that interest rates will fall again in the foreseeable future. In periods of low interest rates, however, it makes sense to choose a longer interest rate fixation period. This offers protection against possible interest rate increases in the future and ensures long-term planning security.

Agree on an option for special repayment

If possible, you should agree on a special repayment option for your annuity loan. This can be specified in the loan agreement under special agreements. Special repayments are payments that are made in addition to the agreed repayment installments. A special repayment immediately reduces the remaining debt on the annuity loan. Since the interest in this form of financing is only calculated on the remaining debt, the interest portion of the following installments is reduced in one fell swoop and thus the term of the loan.

Consider retirement age

By specifying a purpose, you can benefit from low interest rates on your car loan. The bank can register the vehicle as security and sell it if you default on payment. The proceeds can then be used to pay off the outstanding loan costs. This is why the terms for a car loan are more favorable than for a loan without a specific purpose.

Stefanie Wilheim: Credit advisor and author at smavaWritten by Stefanie WillheimStefanie Wilheim: Credit advisor and author at smavaWritten byStefanie WillheimCredit advisor

Since 2021, certified insurance and financial investment specialist Stefanie Willheim has been supporting smava customers with their loan application. With her eye for detail, she is a valued contact for optimizing customers' installment plans. With empathy and expertise in equal measure, she knows the right answer to every customer question. As a sought-after author, she is happy to share her knowledge on the subject of installment loans with visitors to the smava website.

Contact: content@smava.de

Stefanie Wilheim: Credit advisor and author at smavaWritten by Stefanie WillheimStefanie Wilheim: Credit advisor and author at smavaWritten byStefanie WillheimCredit advisor

Since 2021, certified insurance and financial investment specialist Stefanie Willheim has been supporting smava customers with their loan application. With her eye for detail, she is a valued contact for optimizing customers' installment plans. With empathy and expertise in equal measure, she knows the right answer to every customer question. As a sought-after author, she is happy to share her knowledge on the subject of installment loans with visitors to the smava website.

Contact: content@smava.de

The most important questions and answers about credit

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Our banks and partners usually only grant car loans for amounts starting at 1,000 euros. The maximum amount for car loans via our loan comparison is often 50,000 euros – some lenders also offer higher amounts.

Maximum 48 hours. You will receive your personal loan offers within a very short time. The review of your loan application documents only takes a few working days

Maximum 48 hours. You will receive your personal loan offers within a very short time. The review of your loan application documents only takes a few working days.

The loan request with smava is free of charge.

As a rule, you will be asked for bank statements, proof of salary, self-disclosure and a copy of your ID card. If further documents are required, this will be noted in the respective loan offer.

Other loan types from smava

smava offers many different types of loans. Whether for a car, debt consolidation or your business – there are cheap loans for every purpose. In addition, our loan offer is aimed at different groups of people. Whether employees, pensioners or trainees – use our loan comparison to find the right loan. Didn’t find what you were looking for on this page? Then you might be interested in:

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