For a long time, Lender Bank has been one of the few banks to offer the same interest rate to all borrowers. With a variable interest rate of about 5% for all those who have been granted private loans, Lender Bank has been the obvious choice for many borrowers as this interest rate has been considered one of the most favorable on the market.
A Bank loan interest rate is about 5%
However, on January 20, the Lender Bank abandoned its concept, and now the interest rate is set individually. This means that you have no idea in advance how high (or low!) Interest rates may be.
It is the applicant’s financial situation that determines entirely the interest rate that will be applied to the loan amount. This concept is the usual, and now the Lender Bank sells itself to other lenders.
Individual interest rate
Anyone who applies for a private loan from Lender and is granted the loan will be offered an interest rate of between 3.70% and 10.95%. Borrowers with very good finances can thus receive an interest rate of 3.70%, which is one of the best (or the best) interest rates that can currently be obtained on a private loan. The effective interest rate on the loans is 3.76% -11.52%.
What primarily determines what interest rate a person will receive is the income, the existence and size of other loans, the actual loan amount and what the money is to be used for. In addition, there is the possibility of two people standing on the same loan. This gives the bank extra security, which also makes it easier to borrow money at competitive interest rates.
Loan amount and repayment period
The only thing that happened on January 20 was that the Lender Bank departed from its concept of fixed interest rates on private loans in order to use the principle of individual interest rates instead. Otherwise, everything is equally applicable to Lender Bank’s private loans.
It is possible to apply for amounts between $ 20,000 and $ 350,000.
The repayment period for private loans at Lender Bank depends on how much money you want to borrow. For the lowest possible loan amount, ie $ 20,000, and up to $ 50,000, the borrower can choose to repay the loan amount between three and five years.
If the amount is greater than this, there is the possibility of setting up the loan for three to twelve years. Anyone who intends to borrow $ 50,000 or just below should therefore also look at the possibility of borrowing $ 51,000, as this opens up the possibility of setting up the loan for a longer loan period.