According to a recent study by Lite Lender financial market research,
Germans are increasingly using installment loans for consumer finance: whether a new television, a car or new garden furniture – a third of Germans finance these purchases with a bank loan.
In order to be able to generate credit-financed consumer spending, consumers first have to convince the bank of their creditworthiness: most banks are only willing to lend money to a customer for a certain period of time if the salary is sufficient and the job is permanent. But even if a customer does not pass this so-called credit check and the application for an installment loan has been rejected by the bank, there is still another way to convince the bank of a loan: Via a partner loan.
In the case of a partner loan, two people apply for a normal installment loan from the bank. For the bank, whether the partners are spouses, friends or otherwise known persons is irrelevant when applying for a loan together. Consumers can choose the number of applicants in the application process of the credit comparison.
If two consumers take out an installment loan together,
Both persons must provide information about themselves, their employment and their financial situation in the application process. When applying for a loan from two consumers, it is of great importance to the bank that both applicants have sufficient income, a permanent job and a perfect Credit Bureau.
The additional salary of the second borrower also has a positive effect on the loan interest that consumers have to pay for an installment loan: the second salary of the additional applicant increases the creditworthiness of the entire application – even in the event of a possible loan default, the bank has a higher level of security and therefore grants the loan at lower interest rates. However, if one of the two borrowers is no longer able to transfer the due repayments to the bank during the term of the loan, the bank has the right to pledge the salaries of both borrowers and in this way pay the outstanding debt.