Real loans represent property loans that are only secured by existing assets or tangible assets. This distinguishes them mainly from conventional personal loans, in which the personal creditworthiness and creditworthiness of a customer is decisive for the award. They are usually secured by income, the real loans refer to the backup question on the already existing assets. A possible variant for a loan that uses existing assets as a pledge.
How high can a real loan be?
In general, the amount of the real credit refers to the mortgage lending value of the existing assets. This can be the value of land or of its construction. A real loan is therefore measured against its asset, but only a maximum of 60% of it is spent. This is also referred to as the mortgage lending limit, which does not exceed the value.
A real credit is now nothing that concerns only very wealthy or even rich people. Often borrowers also have a negative credit bureau or just do not have sufficient credit rating. Then the assets can provide security for a loan.
Awards of a real credit
In most cases, real estate or land owners use the form of real credit. They lend virtually house and ground to make necessary renovations or repairs. The property itself can be mortgaged in the form of a mortgage or a mortgage.
In addition, the real loan can also increase the current liquidity, even if no structural measures have to be made. The real credit does not necessarily depend on the loaned asset, but can be used individually. As far as interest rates are concerned, these are either variable or firmly negotiated.
The real credit splitting
If the mortgage lending limit of the usual 60% is too low for the desired loan amount, the real credit can be split. A distinction is made between a real and a fake real credit split. In a real one, two loans are made, a real credit and a credit secured by the land register. The complete loan was split up. In the case of a fake real credit split, part of the financing is settled through a normal loan, while the other part is settled by the 60% rule. Of course, normal conditions are used for the normal part of the loan.
Real credit provider
It is important to know that not every bank lends out a real loan, less often real credit splits are granted. Special mortgage lenders have the opportunity to lend these loans, such as savings banks or building societies, but also commercial banks. Of course, it is clear that different conditions may apply. The real credit provider must have a license to spend these loans. Furthermore, the subject matter must be examined and assessed by an expert. The market value must be checked over and over again over the entire term, at least every 3 years. In addition, the property must be adequately insured, as otherwise all collateral would be lost to the bank in the event of damage.
Yes, a real loan can be a good way to get a loan even without sufficient creditworthiness. However, this usually only comes into question if a property is available. Unfortunately, the risk of losing your property due to unforeseen events is very high. So if you want to take out a real loan, that should think well before.