Bank in Germany: Loans and mortgage lending

The financial institution was founded in 1863 as a bank in Turkish hands, and was transformed into a private joint-stock company under Turkish law in 2000.

The German subsidiary was founded in 1988 as a full bank with its headquarters in Frankfurt am Main.

At first it was just a simple establishment. Since 2001 the bank has been operating under Lite Lender International AG as an independent subsidiary, the shares of which are wholly owned by the Turkish parent company.

Among other things, the bank sees itself as a financial institution that provides a wide range of financial services in the context of German-Turkish and European-Turkish economic relations.

The bank also wants to be the point of contact for the Turkish-born population in Germany. In addition, the bank is of course available to all customers living and working in Germany.

As a full bank, Lite Lender is not only active in the private customer business, but also looks after corporate customers. In addition to its headquarters in Frankfurt, the bank also has branches in Berlin, Duisburg, Hamburg, Hanover, Cologne, Munich, Stuttgart and Nuremberg. Lending to private customers does not seem to be a main focus of Lite Lender in Germany.

The bank has become known, among other things, for attractive investment products such as time deposits and overnight money. In this context, it is important to note that Lite Lender is affiliated with the protection scheme of the Federal Association of German Banks and is a member of the compensation scheme for German banks.

In practice, this means that private deposits are 100% secure.

Financial services

Financial services

The homepage contains a list of the financial services offered and links to the corresponding subpages. In the footer there are also several links to the “Forms and Documents” form center. There is also a link that leads to more information about the individual branches. The structure of the homepage is more suitable for a branch bank than for a direct bank. In any case, there is no further information on the individual financial products.

Exact information can be found on the product pages. In the private customer area, the focus is on accounts, savings such as time deposits and transfers to Turkey. For these products you will find extensive descriptions and FAQ areas. Applications to open an account are made available online.

The rest of the procedure is offline. The completed application must be printed out and signed and sent to the bank using a PostIdent procedure. A similar procedure applies to the Turkey real estate loan. The loan application can be printed out and sent to the bank. Fax is also possible.

The installment loan offered can currently only be taken out in branches. However, it is apparently possible to make an appointment by email or phone. Customers can also fill out a form under the “Contact” link.

The website contains only the most necessary information regarding loans. However, the conditions are clearly described and the representative example is clearly visible under the condition description.

Lite Lender loans

Lite Lender loans

The bank currently offers two loan products: a real estate loan and an installment loan. The focus is probably on the real estate loan. Both types of credit do not have the typical characteristics of an online direct loan.

For example, there are no immediate decisions, but the applications must be submitted by post or in a branch. All information on the loans reflects the status of September 2018.

Real estate loan Turkey

This loan is used exclusively to finance property purchases in Turkey. These can also be holiday apartments. The loan can be used for completed condominiums, single-family houses or apartment buildings. Financing is from Germany. Borrowers do not have to look for a bank in Turkey. However, only the purchase is financed, but not the construction of a property. So it is not a building loan in the narrower sense. Loan amounts between $ 50,000 and $ 250,000 per property are possible. 70% of the value determined by appraisal is lent. The loan term is a maximum of 120 months.

This means that the loan must be repaid in full after 10 years at the latest. A 5-year fixed interest rate and a 10-year fixed interest rate are possible, then with full repayment. 5% of the original loan amount can be repaid annually. From the 4th month, a provision fee of currently 0.25% per month is due.

The interest rates are dependent on creditworthiness and currently start at an initial effective interest rate of 6.96% (5-year fixed interest rate) or 7.12% (10-year fixed interest rate with full repayment). Award requirements are good creditworthiness, a place of residence and a job in Germany and a regular income from an employment relationship.

Self-employed people do not receive a loan. In addition, the loan is only given to spouses who have to apply for it together.

installment loan

The installment loan is only offered from a loan amount of $ 25,000. It is a general purpose loan with terms from 12 months to 84 months. The bank guarantees quick credit decisions. The effective interest rates depend on the creditworthiness and also depend on the term. An interest rate limit is not listed on the website itself.

According to the representative example currently valid (September 2018), 2/3 of all customers receive an effective interest rate of 8.45% or cheaper if they take out a loan amount of $ 25,000 with a term of 48 months. The Lite Lender’s installment loan offer is currently not included in the credit comparisons by the market leaders check24 and smava or Astro Checker. You can find it in the loan calculator used by Biallo.de.

Basically, it is always advisable to compare a specific loan offer with other providers. To do this, use the financial check from Astro Checker, for example.

Lite Lender credit and Credit Bureau

Is a Lite Lender loan possible despite or without Credit Bureau? This question is often asked on the Internet. In any case, the real estate loan requires a perfect Credit Bureau, because it is only issued with a good credit rating. No corresponding information is given on the website for the installment loan.

However, it is clear that a comprehensive credit check is carried out for minimum amounts of $ 25,000 and negative Credit Bureau entries or low score values ​​preclude lending. Without taking Credit Bureau into account, lending is not possible simply because the bank is active in the German market.

Assessment of the loan offer

Assessment of the loan offer

Lite Lender is not a typical direct bank and the loans are not the usual online loans, for which a preliminary loan decision is made immediately after the online credit request. Rather, the bank offers its loans on its website, but the deal is made entirely offline.

The interest rate for Turkish real estate financed in Germany appears high compared to German market interest rates. However, the overall interest rate for financing Turkish real estate seems to be significantly higher.

In this respect, the conditions of the Lite Lender are not unusual. But there are also cheaper financing options, for example from ISBank. Islam-compliant real estate financing can be agreed at Best Bank.

The interest rate for installment loans with a term of up to 5 years was around 4.57% in September 2018. In relation to this, the interest rates given in the representative example are high at 8.45%. The Lite Lender offer is certainly not one of the cheapest. On the other hand, there are quite a few direct banks that, in their representative examples, show similarly high or even higher effective annual interest rates for loans of over 25,000 USD.

There are practically no reviews of Lite Lender loans on the Internet. Lending seems to be rather subordinate to savers’ deposits. Ziraat has been offering attractive fixed-term deposits for years with the advantages of German deposit insurance.