Riding is the most fun on your own, well-trained horse. But such horses have their price and usually cost a few thousand USD. There are no upper price limits, especially if a noble pedigree horse should also serve as an investment.
In many cases, buying a horse is not only possible with the savings, but you need a loan. For customers who want to take out a loan for a horse, depending on the loan amount and term, the overdraft for the current checking account or a consumer loan can be considered.
The overdraft facility
Most consumers have a checking account for recurring incoming and outgoing payments, to which banks grant a credit facility. As a rule, the maximum amount of credit that can be drawn by overdrafting the current account is two to three times the regular salary payment. It is not necessary to fill out a loan application. Customers simply make cash withdrawals or transfers that exceed the available balance in their account to use the overdraft facility.
Even those who want to take out a loan for a horse can use this practical overdraft loan. This is particularly recommended if only a relatively small loan amount is required and repayment is possible within a few weeks. This is because the relatively high interest rates that are usually payable for an overdraft facility are of no further importance for short-term financing.
The consumer loan
If, on the other hand, you have to take out a larger loan for a horse that is unlikely to be repaid quickly, a consumer loan is much more suitable. With this type of loan, customers benefit from low interest rates, which, in contrast to the interest on the overdraft, are fixed throughout the term. With a typical consumer loan, the borrower is completely free to use it. He does not have to provide the bank with any evidence of what he used the borrowed money for.
That is why it is easily possible to use a consumer loan as a loan for a horse. Branch banks and savings banks as well as online banks offer cheap consumer loans. Customers who would like to take out a loan for a horse are best informed about online loan comparisons using particularly advantageous loan offers. When applying for such a loan, an extensive personal questionnaire must be completed.
Here, among other things, information on the amount of the salary and the monthly expenses as well as the marital status and the professional activity are to be given. Domestic banks and savings banks generally also obtain information from Credit Bureau in order to convince themselves of the customer’s creditworthiness.
After approval, the loan for a horse is transferred to an account specified by the borrower. The repayment is made in equal installments over the term of the loan. Customers who can only raise smaller amounts for loan repayment choose the longest possible term.