Personal Loan Austria: Comparison, Interest Rates & Requirements

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What Is a Personal Loan?

A personal loan is money borrowed by individuals for personal purposes – as opposed to business loans for companies. The term is often used synonymously with "consumer loan" or "installment loan". The money is generally freely available.

Personal Loan vs. Other Loan Types

Loan Type	Use	Typical Interest	Special Feature
Personal Loan	Freely usable	4.5% – 9.9%	Flexible usage
Car Loan	Vehicle purchase	3.9% – 7.9%	Vehicle as collateral
Home Loan	Renovation/Furnishing	3.5% – 6.5%	Purpose-specific
Mortgage	Property purchase	3.0% – 4.5%	Land register security

What Is a Personal Loan Used For?

Common Uses

• Consumption: Furniture, electronics, travel
• Debt consolidation: Pay off existing (more expensive) loans
• Repairs: Car, household appliances
• Health: Dental treatments, surgeries
• Education: Training courses, driver's license
• Family celebrations: Wedding, milestone birthdays

Tip: State the Purpose

Even though a personal loan is freely usable, stating a purpose can be advantageous:

• Better interest rates for specific purposes
• Faster processing
• Higher approval chances

Requirements for a Personal Loan

Basic Requirements

• Age: 18-70 years (varies by provider)
• Residence: Primary residence in Austria
• Income: Regular, verifiable income
• Creditworthiness: Positive KSV (credit bureau) report

Income Requirements

Employment	Minimum Duration	Proof
Employed (permanent)	After probation (usually 6 months)	Payslips, employment contract
Employed (fixed-term)	12+ months in same job	Payslips, extension prospect
Self-employed	At least 2-3 years of self-employment	Tax assessments, financial statements
Retiree	Current pension	Pension statement

What Counts as Income?

• Salary/wages (net)
• Pension
• Rental income (regular)
• Alimony payments (permanently court-ordered)
• Child care allowance (partially)
• Unemployment benefits (only conditionally)

Personal Loan Conditions Overview

Typical Loan Ranges and Conditions

Loan Amount	Typical Term	Interest Range (eff.)	Example Payment
€1,000 – €5,000	12 – 36 months	5.9% – 10.9%	approx. €90 – €300
€5,000 – €15,000	24 – 60 months	4.9% – 8.9%	approx. €200 – €350
€15,000 – €30,000	36 – 84 months	4.5% – 7.9%	approx. €300 – €500
€30,000 – €50,000	48 – 120 months	4.5% – 7.5%	approx. €400 – €700

Calculate your individual payment with our Loan Calculator.

Applying for a Personal Loan: Step by Step

1. Determine Loan Need

• How much money do you really need?
• What monthly payment can you afford?
• How long should the term be?

Rule of thumb: The payment should be max. 30-40% of disposable income (after fixed costs).

2. Compare Offers

Use comparison portals to get multiple offers at once. More on this: Loan Comparison Austria

3. Submit Application

• Fill out online application
• Upload documents
• Verify identity (video-ident or mobile signature)

4. Wait for Review

The provider checks:

• Creditworthiness (KSV)
• Income and expenses
• Household calculation

5. Sign Contract

• Read contract carefully
• Note withdrawal right (14 days)
• Sign digitally or by mail

6. Receive Payout

Money is transferred to your account – with instant loans within 24-48 hours.

Tips for Affordable Personal Loan Interest Rates

1. Improve Creditworthiness

• Pay bills on time
• Pay off old debts
• Check KSV report and correct errors

2. Choose the Right Term

Shorter terms mean:

• Often lower interest rates
• Lower total costs
• But higher monthly payments

3. State Purpose

Even if the loan is "freely usable" – a specific purpose can bring better conditions.

4. Get Multiple Offers

Interest rates can differ by 2-4%. That saves up to €1,000 on €10,000 over 4 years.

5. Ask About Special Offers

Some banks offer temporarily reduced interest rates or waived processing fees.

Personal Loan: Advantages and Disadvantages

Advantages

• Flexible: Money freely usable
• Predictable: Fixed payment, fixed term
• Fast: Often payout within a few days
• Transparent: All costs included in effective interest rate

Disadvantages

• Higher interest: Than purpose-specific loans
• Debt: Commitment over several years
• Costs: Additional interest burden on top of purchase price
• Temptation: Encourages unnecessary spending

Refinancing Personal Loan: When Does It Make Sense?

Refinancing can make sense when:

1. Your current loan has high interest – e.g., over 8% with good KSV
2. You have several small loans – consolidation into one loan
3. Your creditworthiness has improved – better conditions possible
4. You've maxed out your overdraft – overdraft interest is usually 10-15%

But note: Possible early repayment fee on old loan (max. 1% of remaining balance).

Frequently Asked Questions About Personal Loans

How Much Loan Can I Get?

That depends on your income and expenses. As a rule of thumb: The monthly payment should be max. 30-40% of disposable income.

Can I Get a Personal Loan Without Fixed Income?

Very difficult. Possible alternatives:

• Guarantee from someone with income
• Smaller loan amounts (mini loan)
• Offering collateral

How Long Does Processing Take?

• Online loan: 1-3 business days
• Instant loan: 24-48 hours
• Bank loan (traditional): 5-14 business days

More on this: Instant Loan Austria

Can I Repay the Loan Early?

Yes, that's your right. The early repayment fee is legally capped:

• Max. 1% of remaining balance (with remaining term over 12 months)
• Max. 0.5% of remaining balance (with remaining term under 12 months)

Do I Need Payment Protection Insurance?

No, it's optional. It's often expensive and only worthwhile with:

• High loan amounts
• Long terms
• Single income source for the family

Conclusion: Using Personal Loans Wisely

A personal loan offers flexibility but also responsibility:

1. Borrow only as much as needed – no more
2. Compare multiple offers – interest differences of 2-4% are normal
3. Pay attention to the effective interest rate – only this is comparable
4. Plan your payment realistically – max. 30-40% of disposable income
5. Use extra payments – to become debt-free faster

Related Articles:

• Loan Calculator Austria
• Loan Interest Rates Austria
• Installment Loan Guide
• Loan Guide – Main Page

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Disclaimer: The mentioned interest rates and conditions are indicative values and may change. The actual interest rate depends on your personal creditworthiness. For binding offers, contact the provider.