Swak Credit can be proud of. Favorable interest rates and a completely electronic application convince quite well. On the other hand, the prepayment penalty for full early repayment is negative. It is also regrettable that the self-employed can not use this offer.
The interest rate for the Swak loan ranges between 1.88 per cent per annum and 4.55 per cent per annum on the borrowing rate. For the PRA this means a range between 1.90 and 4.65 percent. The interest rate for Swak Credit depends on the creditworthiness of the applicant. Unfortunately, Bank notifies the interest rate to be paid only after the application has been submitted.
The reported two-thirds interest is 3.19 percent effective in the year. Here, the Swak credit is certainly among the better deals. The Price Indication Ordinance requires that credit institutions must specify the interest rate that two thirds of the borrowers pay in maximum. After all, two-thirds of Bank’s customers have an interest rate that is mathematically below the mean.
The product features
With an entry level of USD 2,500, Swak Credit is not aimed at those consumers who are looking for small loans. Extremely high financings are also not possible with an upper limit of 50,000 USD. In sum, the Swak credit moves with its dimensions in the large mass of the offerers. A selection of the loan amount in increments of 500 USD is feasible.
“On average, too, Swak Credit moves during the term. This ranges from 24 to 84 months. The graduation can be freely selected in increments of 12-month intervals. The minimum term of 24 months, however, is a bit high, especially if it is a loan over 2,500 USD.
Swak Credit can easily be used to reschedule or bundle existing liabilities.
The applicant receives the loan commitment within 30 seconds. However, the Institute does not comment on how long it will take to pay out after the client has provided all the documentation.
The prerequisite for obtaining a Swak loan is regular monthly income. Self-employed people can not avail this loan.
The repayment phase
It makes sense to think about the repayment phase even before signing the loan agreement. After all, it may be that there is a possibility to replace the loan early. However, it may also be the case that the borrower has to pause with the installment. What about Swak loan?
In the event of a partial early repayment of the loan, Bank waives a prepayment penalty. However, if the borrower wishes to repay the Swak loan in one sum prior to expiration, the institution calculates a prepayment penalty. This amounts to one percent for a residual term of more than one year and 0.5 percent of the remaining debt in less than twelve months.
If there is a need for an installment deferral, the customer can arrange this individually. A contracted rate break does not exist. However, the application for deferment can be made at any time without further problems by means of an online form.
If there are still differences between the bank and the customer, it is interesting for the borrower to know who to contact. In its imprint, Bank mentions both the BaFin as supervisory authority and the ombudsman and the European dispute settlement platform as arbitrator.
The service is focused on direct banks, they must convince their customers without the direct conversation of themselves and their products. The telephone contact is particularly important. The employees convince by a friendly and polite appearance in combination with a high degree of competence. Questions, such as rate breaks or early repayments for Swak Credit, are answered without hesitation.
If you have questions about the product, the telephone hotline is available from Monday to Friday between 9:00 and 19:30. Alternatively, he can leave a callback request, which also provides “time” as a time window. Only at the weekend no communication is possible. Bank also refrains from contacting its customers via e-mail.
Another advantage for the service is the option to process the application completely electronically. This includes the electronic signature via app as well as the VideoIdent procedure and the digital transmission of documents.
Alternatively, of course, the classic postal service with Postidentes procedure is still available.
Some borrowers feel better, especially with larger volumes, when they have some security. Swak credit can be covered by a residual debt insurance. This is payable on the death of the borrower, in the event of incapacity for work and in the event of involuntary loss of employment. However, the residual debt insurance is not a must in order to obtain the Swak loan.
The application process starts with the button “Save interest now”. This is subdivided into five steps and has a clearly structured structure. On the first page, the interested party enters his personal data and must answer the questions about a negative Credit bureau entry or payments to debt collection agencies.
- Step two deals with the income situation of the applicant and the employment relationship. In addition, the applicant must answer questions on the amount of rent or mortgage lending rates, on car and real estate ownership, and other financial obligations. When asked about the bank details Bank shows that it is up to date. Instead of having to submit the bank statements, the company offers the customer to make a direct account query with his house bank. This procedure, in combination with the electronic signature, speeds up the application for the Swak loan immensely.
- The following is a summary of the information provided with the option of making corrections. With submission the loan application was successfully submitted.
- The application process is very clear and offers a clear structure. On all pages, the phone number is displayed for queries. Unfortunately, the service is not available until late in the evening, but only until 19:30.
- Swak Credit in no way requires a visit to a post office, as the entire application, including the transmission of the documents, can be processed electronically. Bank provides an app for the digital signature.
- During the application, the program validates the information provided in the background. It also terminates automatically when inputs are made that do not allow lending. These include, for example, job information such as “self-employed” or “unemployed”.
In total, it takes a maximum of two minutes to complete the application for the Swak loan. As Bank does not use “voluntary information”, it is generally mandatory.
If the loan was approved, but the borrower thinks otherwise, he has an extended right of withdrawal of 30 days, deviating from the statutory provisions with 14 days.
The mobile application
Bank takes the zeitgeist into account with the application for mobile devices. The application does not differ from the page for PCs and laptops, has the same speed and easy readability. Bank’s mobile website includes all information required by law, two-thirds interest as well as information on arbitration boards and the supervisory authority.
The question of the Swak loan documents is a double-edged sword. On the one hand, it concerns the documents which the customer must submit and, on the other hand, the documents concerning the bank.
Customers must submit the last two payslips and the bank statements of the last four weeks. Cancellations of account statements are not accepted by Bank. However, the bank offers the option that the applicant legitimizes them to access the account once and take a look. It may be that the bank would like to see further documents in individual cases, and inform the applicant in the cover letter to the credit agreement.
For loans under 5,000 USD, the bank waives the salary statements.
Bank is sparing with its own documents. A price list is not found in the context of the Internet presence at all, nor a Sitemap, which would facilitate the search. The general terms and conditions are listed in the bottom line of the start page in small letters. Who opens it, comes across five pages of text in screwed lawyer German.
Conclusion of the product test of the Bank installment loan
As with all other products, there is no ultimate loan. This also applies to Swak Credit, which however can convince in the crucial points, interest rates and early partial repayment. And with its fully electronic settlement, Bank is ahead of most competitors.