Available Amount In Percent
The charge ratio indicates the relationship between the monthly loan installment and the borrower's available amount and is expressed as a percentage. It shows what proportion of the available amount is at the borrower's free disposal each month.
The debit ratio is determined as part of the credit check, as it is a decisive criterion for the approval of a loan application. This ensures that the borrower is not overburdened with the monthly installments and can always settle them on time.
The Consumer Credit Act (KKG) stipulates that the debit ratio for repayments over a period of 36 months may not exceed 100%. This legal requirement serves to protect the borrower and ensures that the financial burden remains within limits.
With Crowd4Cash it is even the case that the debit ratio may be a maximum of 80%. This additional measure ensures that the borrower's financial capacity is given special consideration to ensure responsible lending.