Personal Loans in Austria, All You Need To Know:

Compare the best personal loans in Austria for free and in just 5 minutes. FUNDGECKO is out to help you have a seamless financial decision-making process by providing all the information you need about the best personal loans in the market. We equip you with all you need to know and do before signing up for a loan.

The current market for personal loans

We update you with the latest news about financing this month. Take a quick read through the most relevant news on consumer credit.

• With the stability of Austria’s banking systems, the average bank interest rates in the country as of January 2022 is 1.59% p.a. However, the rates surged to 5.9% in February in the 19-nations Eurozone, which was 3.9% above ECB’s target. 

• Mid-March 2022, the European Central Bank (ECB) announced that the cost of borrowing would only increase gradually to prevent financial turmoil amid the Russian war. This makes it the best time to borrow when the rates are still low.

How to compare online loan offers?

Austria has hundreds of loan providers. Working with only one lender might not be the best option for you. That’s why you need to compare the options before settling on one. Additionally, it’s prudent to use the right parameters when comparing these options, for instance, the interest rates, loan amounts, repayment periods, commissions and other fees, and many more.

How to use FUNDGECKO to get personal loans

At FUNDGECKO, we seek to inform our users about everything regarding loans including their characteristics, operation, and conditions. Having this information will make the process of selecting a financial product very easy. 

These are the steps you’ll follow at our site:

Compare the different financial options you’re attracted to. This process is free of charge.

Take time to read through their contractual terms to learn about their conditions in detail

FUNDGECKO seeks to rubbish any doubts you may develop along the way and help you choose a consumer credit you prefer with confidence. Clicking on “Contract” will take you to the entity website where our experts will help you through the application process.

Our website has a comment section where you can leave your reviews so other users can develop the confidence to work with us.

Why do you look for personal loans?

Personal loans come in handy when you’re faced with the need for a financial injection. You may want to complete or further your studies, make major purchases, renovate your home, or consolidate your debts. 

Use the list below to find a good offer for a specific purpose:

• Finance your wedding
• Finance your studies
• Finance vacation or trip
• Furnish or renovate your home
• Finance your projects
• Debt coverage
• Purchase home appliances and electronics
• Finance your health and beauty

Note: there are different conditions for different purposes for which we want to take out a loan. For instance, education loans are generally more friendly than any other loans. Knowing the purpose will help you choose the best available option.

How to apply for a personal loan?

While you’ll need to follow many steps when applying for a personal loan, the first step is key – knowing whether the loan is the best option. Different entities will have different methods of application. Let’s take a look at the steps you’re likely to take when taking out a personal loan:

1. As aforementioned, working with different options will help you discover options that are more compatible with your needs. Do personal research and consult with different providers to get authentic information about their services, terms, and conditions.
2. You’ll thereafter be required to fill out an application form with your personal details and select the purpose, amount, and repayment period that you prefer. While some entities will require you to fill and submit the form online, others will have you drop it at their offices.
3. If applying online, you’ll receive a pre-approval a few minutes after submitting the form. Pre-approval takes a few days to come, for the face-to-face application.
4. Get the documentation required and send them online or through any other way your entity prefers.
5. If the loan is approved, pre-contractual forms will be sent to us either by mail or online. Take time to go through the nitty-gritty details of the contract taking note of the conditions of our future loan; amount, term, interest, commissions, and others.
6. Sign up for the loan if you’re comfortable with everything. You may sign through a digital signature or in the entity’s office.
7. Receive the money in a matter of hours or days and get started with your projects.

Requirements for personal loans in Austria

Getting the best option and making an application is just the first hurdle you have to jump before you get the funds. The lender will approve your application if only you meet the irreducible minimums. While these requirements may vary with the loan provider, below are some of the common requirements:

1. Be of legal age. 18 years and above
2. Be an Austrian resident. A foreign applicant will be required to have a permanent residence card.
3. Have a stable source of income that proves you’re able to pay the amount of money you’re applying for. Low income only means that you’ll qualify for small loans.
4. Your lender might check into your level of debt before approving your application. Having debts with many lenders might disqualify you because that would mean that you’ll not be able to repay the loan.

Make sure that your name is not listed with any credit bureaus in Austria (KSV or SCHUFA) as most lenders will not finance you in that way.

Note: Personal loans can only be helpful when taken responsibly and if you’re able to repay comfortably. It’s recommended that you take a loan whose monthly payments will be 35-40% of your monthly income. Anything higher than this is likely to submerge you to overindebtedness.

Documentation for applying for a personal loan

It’s important to have the right documentation to make the whole process hassle-free.

• Have a valid form of identification whether a native or a foreigner
• Copies of your bank statements that show incomes of a few previous months
• Income tax return
• Have proof of income whether as an employee, self-employed, receiving a pension, etc.
• Have a proposal form wherein you’ve detailed the purpose of the loan. This doesn’t apply to small loans.

Asking for a personal loan from a bank with which we have an active account and your receipts and income are domiciled will save you the hassle of much paperwork.

Who grants personal loans in Austria?

Banks had taken the lion’s share in providing consumer credits until the 2008 financial crisis when other financial platforms and companies got their way into the Austrian market. 

Below are the lenders that broke into the market and have grown at a brisk rate:

• Bank entities
• Credit Financial Institutions (CFE)
• Private Lenders
• P2P Lending Platforms

Let’s take a quick look at each of the options and their services.

Financing through banks

• Wide range of products
• Big loans and loan flexibility
• Long repayment periods
• Competitive interest rates

• Long application processes involved
• Loans attract more commissions
• Stringent eligibility parameters like seniority

Credit Financial Institutions

• Financing for any purpose
• Favorable interest rates
• Fewer commissions involved
• Quicker concessions

• Strict eligibility parameters like in banks
• Adverse effects on credit history

Financing from private companies

• Quicker concession
• Less strict eligibility requirements
• Loans accessible to newbies

• Unfavorable interest rates
• Adverse effects on credit history

Financing through P2P platforms

• Hassle-free online application
• Available to applicants with a negative credit score
• Excellent financing conditions

• High interest rates
• Slow concession
• Not available to applicants with a negative SCHUFA score

FAQ: Frequently Asked Questions

What is a personal loan?

A personal loan is a type of consumer credit that you apply for when in need of a financial injection for purposes such as making big purchases, debt coverage, buying a car or a home, etc. The lender will have you repay the amount you borrow with the interest you will agree on and over a specified period. 

Many lenders in Austria will check into your credit history before giving out personal loans. The Data Protection Act 2000 came in to protect individuals from being discriminated against based on available digital processes only which have brought about economic and inequality adversities to individuals.

Why don’t you give me personal loans?

Lenders in Austria will step back from giving loans to individuals with poor credit scores. Besides, there are other factors like not submitting the right documentation, or meeting the entity’s irreducible minimums.

What is the INE form for a loan?

The Standard European Information (INE) form is a document that the lender provides the borrower with that details the credit agreement, the terms of operation and service, and personal loan conditions: amount, interest, term, commissions, other fees, etc.

What is the binding offer of personal credit?

A binding offer is a document that the lender or entity gives you before you sign for personal credit. The lender gives you 14 calendar days to go through the clauses and conditions of the loan, comparing options. 

Can personal loans be paid in advance?

The Austrian law allows credit consumers to make loan repayment in full or part before the required time. The borrower will be required to notify the lender in good time before making the repayment. Some lenders will have you pay the early repayment fee.

What if I take out a loan online and then regret it?

By the Austrian Law, credit consumers can withdraw their loan application before the required 14 calendar days without attracting any penalties.

What happens if I don’t pay back a personal loan?

Failure to assume a personal loan repayment will land your name on credit bureau blacklists, which will deny you access to loans in the future. Many lenders check into your credit score before approving your loan application.

When to Apply for a Personal Loan

A personal loan comes in handy when you’re looking for funds to launch or complete a project and don’t mind waiting. You might get the loan from a new entity and be required to demonstrate your ability to repay the loan.

For expats, many entities have their websites with English (and other languages) support and provide the funds as long as you meet their requirements.

When to Apply for a Fast Loan

A fast loan is what you’ll opt for when in need of a quick financial fix. You’ll not get so much money yet the interest will be high. The repayment period is also short. The loan is only required when there are no alternative financial sources or during emergencies.

Don’t apply for a fast loan without repaying a previous fast loan to avoid over-indebtedness.

Wrapping Up

Always be sure of the financial option you choose and go through their contractual terms to avoid making unexpected payments in the future.

Take out a loan size that you’re able to repay and spend the funds responsibly.

About this page, our methodology

What this page is for: we’re here to provide any necessary information regarding consumer credits and the latest news concerning the same.

Source: information about regulation on consumer credits has been drawn from the Austrian Law, government portals, among other reliable sources.

Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.

About FUNDGECKO: we are an online comparator website that’s designed to help our users have an easy loan application process by comparing the best options in the market and equipping them with the information they need beforehand.

Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.