Loan terms

Under loan conditions ( loan conditions , credit conditions ) is generally understood and banking the elements of the contract to which lenders are willing to loan or loans to borrowers to grant.

General

Loan conditions are not conditions in the legal sense, but part of a loan or credit agreement . They should specifically regulate the conditions under which a loan must be granted. Credit conditions are part of the credit supply , which the borrower - often within a certain offer period - believed to be. This creates the loan agreement and the borrower is obliged to adhere to the agreed loan terms. The loan terms apply regardless of whether the borrower receives a commercial loan ( corporate finance ) or as a natural person within the framework of standardized private customer business .

species

In the case of credit institutions, a distinction is made between general loan conditions such as the general terms and conditions (GTC), which contain general regulations for the lending business , and the credit conditions in the narrower sense .

• The credit conditions in the narrower sense include all specific conditions contained in the credit agreement such as
  • Loan amount and loan type (see money lending , loan lending ),
  • Nominal interest rate ,
  • if applicable, effective annual interest rate ,
  • Payout rate ( discount ),
  • Credit associated costs such as any processing fee , commitment fee , credit commission or overdraft commission ,
  • Duration of the fixed interest rate ,
  • Repayment form and due date,
  • Repayment plan ,
  • Provision of loan collateral ,
  • Payment requirements ,
  • Submission of lending documents .
• The general terms and conditions contain the law as general contractual conditions
  • the lender to the provision or strengthening of loan collateral in the event of a significant deterioration in the borrower's financial situation,
  • of the borrower to release collateral in the event of overcollateralization or
  • the lender on loan termination if there are grounds for termination.

A large range of bank fees in connection with loans to natural persons has been classified by the BGH as inadmissible for reasons of consumer protection . These include processing fees for processing consumer credit agreements and other consumer loans , which have been banned from being charged since May 2014. In this regard, the BGH ruled in May and October 2014 that the processing fee for personal loans demanded by banks is inadmissible because the agreement of processing fees for consumer credit agreements in the General Terms and Conditions pursuant to Section 307 (1) sentence 1, paragraph 2 no. 1 BGB is ineffective. These include in particular installment and car loans as well as loans for real estate financing .

Other requirements

The law also gives rise to the mandatory information for consumer loans according to Section 492 (2) BGB in conjunction with Art. 247 Sections 3 to 13 EGBGB , any right of withdrawal and the requirements for loan termination .

International

In the standard contracts of the Loan Market Association, the loan terms are called “terms (of credit)” or “terms and conditions”, while “conditions precedent” represent the payment requirements. The “terms” in loan agreements in the Anglo-Saxon-speaking area are much more comprehensive than in Germany, because according to case law, any situation that is considered improbable must be contractually clarified.

International development banks such as the International Monetary Fund or the World Bank make the granting of their financial aid dependent on some strict conditions vis-à-vis the beneficiary states within the framework of conditionality .

Individual evidence

1. ↑ BGH, judgment of May 13, 2014, Az .: XI ZR 405/12
2. ↑ BGH, judgment of October 28, 2014, Az .: XI ZR 348/13
3. ↑ Clara-Erika Dietl / Anthony Lee, Gabler Economic Dictionary: Commercial Dictionary , 2003, p. 95 f.