Consumer loans are, in the first place, credits that are designed for consumption. This means that they are not tied to a specific purpose and the amount paid out can in principle be used freely for various commodities or services. Consumer loans are sometimes referred to as consumer credit.
Frequent uses of consumer loans are the purchase of new furniture, electronic devices, vehicles or the booking of leisure travel. In the case of consumer loans without earmarking, you generally do not need to deposit any collateral. The agreed interest rate for many consumer loans is then just below the interest rate of credit.
You do not need to specify the purpose of use when taking out a consumer credit. However, if you want to buy a new vehicle, for example, it may be worth specifying the intended use. Although car loans are also consumer loans, the interest rates are usually slightly cheaper. In addition, the bank can withhold the vehicle registration and thus receives additional security.
Consumer credit included with most banks on offer. In addition, you will find suitable offers at many retailers who want to increase the sales of their products with consumer loans. As part of special promotions, for example, in the electronics and furniture markets, you receive a loan that runs without interest several times a year. You then pay back over a predetermined period only the purchase price to the bank. However, such special financing is subject to certain conditions. So there is usually only one eligible term and a maximum loan amount that can be used in the context of the action.