Better terms than with a Volksbank loan: How to secure top interest rates through smart alternatives
09.07.2025
12
Minutes
Katrin Straub
Managing Director at nextsure
Do you think your Volksbank loan is too expensive? You're not alone, as online providers often offer interest rate advantages of up to three percentage points. Find out here how to proceed systematically to find the best alternatives to the Volksbank loan with better terms and noticeably reduce your financial burden.
The topic in brief and concise terms
Interest rate differences of up to four percentage points between high street banks and online providers are not uncommon and can mean savings of thousands of euros.
Debt restructuring can reduce monthly repayments by over 20 percent and, by consolidating loans, improve your financial overview.
The early repayment charge for consumer loans is capped by law at a maximum of one per cent of the remaining debt, which often makes switching very attractive.
Cost analysis: Why your existing loan could be too expensive
An average instalment loan in Germany has an effective annual interest rate of around 7.11 per cent. Many borrowers even pay higher interest rates with their main bank, without realising it. Let’s assume you have taken out a loan of 20,000 euros at an interest rate of eight per cent. Simply reducing the interest rate by two percentage points can cut your interest costs by more than 1,000 euros over a term of five years. The terms depend heavily on your individual creditworthiness, but the market often offers more favourable options. A close look at your current contract is the first step towards significant savings. With an existing instalment loan for refinancing, you can often save a great deal of money. This analysis shows why comparing offers is essential in order to realise financial benefits.
Market overview: digital providers as a strong alternative
Digital credit platforms and direct banks have revolutionised the market and often offer significantly better terms. While traditional banks have high operating costs, online providers benefit from lean structures and pass these advantages on. Interest rates below four per cent are not uncommon for borrowers with good creditworthiness. A decisive advantage is speed: a loan application can often be completed fully digitally in less than 15 minutes. Here are some of the main advantages of digital providers:
Lower interest rates: On average, online providers undercut branch banks by up to 40 per cent.
Fast processing: The credit decision and payout often take place within 24 hours.
High flexibility: Many digital loans allow free early repayments or early settlement.
Transparent comparison: Platforms make it possible to compare dozens of offers with a single enquiry.
These factors make a credit comparison with TÜV seal a powerful tool for anyone looking to reduce their financial burden. The next step is the practical implementation of the refinancing.
Guide to refinancing: Four steps to a cheaper loan
Debt refinancing is the process by which an old, expensive loan is replaced by a new, cheaper one. This process is simpler than many people assume and can be carried out in four clear steps. The key to success lies in careful preparation and a thorough comparison of the offers. Refinancing is almost always worthwhile when the interest savings exceed the costs incurred. Here is the systematic way to proceed:
Determine the outstanding balance: Ask your current bank for the exact outstanding balance and the payoff date.
Compare offers: Use an online comparison calculator to submit non-binding enquiries about terms to several banks.
Conclude the new loan agreement: Choose the best offer and finalise the new contract digitally or by post.
Pay off the old loan: The new bank transfers the loan amount directly to the old bank to pay off the loan.
By refinancing existing loans, you not only gain financial benefits, but also a better overview of your finances. But there are more expert tricks to get the maximum out of it.
Expert tips for maximising your savings
To obtain the best possible terms, you should be aware of a few legal and practical details. An important point is the prepayment penalty that a bank may charge for early repayment. Our expert tip: For consumer loans, this compensation is legally capped at a maximum of one per cent of the outstanding balance if the remaining term exceeds twelve months. If the remaining term is shorter, it is only 0.5 per cent. This rule can be found in § 502 of the German Civil Code (BGB). Another tip is to apply for the loan jointly with a second applicant, which often improves creditworthiness by more than 20 per cent and leads to better interest rates. Also check whether consolidating several loans could not only save you interest, but also improve your Schufa score. With this knowledge, you can increase the potential savings even further.
Case study: How a family saved 2,160 euros
A family took out a loan of 25,000 euros with their main bank three years ago at an effective annual interest rate of 7.9 per cent. After 36 months, the remaining debt still amounts to around 16,500 euros. By comparing offers online, they found a deal for a new loan with an interest rate of just 3.9 per cent. After deducting the early repayment fee of one per cent (€165), this resulted in a monthly instalment reduction of €45. Over the remaining term of 48 months, the saving adds up to an impressive €2,160. This example shows how a digital loan enquiry can make a significant financial difference. It proves that it is worth looking for alternatives to the Volksbank loan with better terms.
Conclusion: Act now and optimise your finances
The interest-rate landscape for loans is constantly changing, and digital providers are creating new opportunities for consumers. Rather than staying with expensive existing loans out of habit, you can reduce your financial burden by hundreds or even thousands of euros per year through a targeted comparison and refinancing. Thanks to digital solutions, the process is faster and more transparent than ever before. Take the opportunity to actively shape your finances and benefit from the best terms available on the market. Request a personalised loan analysis now: Have your financial situation reviewed free of charge and receive concrete suggestions for optimising interest rates.
More useful links
Statistical Office of the Federation (Destatis) provides datasets on loans and online transactions.
Deutsche Bundesbank contains statistics on interest rates and yields for consumer loans to private households (instalment loans).
Consumer advice centre gives tips on saving money on loans and advances.
Wikipedia provides a comprehensive article on the topic of credit.
KfW provides information on domestic funding for private individuals.
Deutsche Bundesbank explains how tight monetary policy affects bank interest rates.
Banking Association gives tips on repaying an overdraft.
Deutsche Bundesbank provides statistics on deposit and lending interest rates.
FAQ
What is an early repayment charge?
The early repayment penalty is a fee that a bank may charge if you repay a loan with a fixed interest rate before the end of the term. It compensates the bank for the lost interest income. For consumer loans concluded after 10 June 2010, it is limited to a maximum of one per cent of the outstanding balance.
How long does it take to refinance a loan?
Thanks to digital processes, refinancing can be very quick. After submitting all documents to the new bank, the review and disbursement often take only a few working days. The entire process from requesting a quote to paying off the old loan can be completed in under a week.
What documents do I need for refinancing?
As a rule, you will need your last two to three payslips, your bank statements from the last few months, a copy of your identity card and the existing loan agreement or a redemption statement from your old bank showing the exact outstanding balance.
Is a terms enquiry with another bank Schufa-neutral?
Yes, a purely “credit terms enquiry” is SCHUFA-neutral and does not affect your score. Only when you submit a binding loan application is a record entered. Comparison portals use only the neutral terms enquiry.
Can I also refinance an overdraft?
Yes, refinancing an overdraft is particularly advisable. Overdraft interest rates are often above ten per cent. Replacing it with a personal loan at an interest rate of, for example, four per cent can reduce interest costs by more than half.
Is refinancing still worthwhile with a short remaining term?
If the remaining term is under twelve months, refinancing is often no longer worthwhile, as the savings can be eaten up by the fees incurred. A precise calculation is always worthwhile, however, as the early repayment penalty falls to 0.5 per cent for short terms.
