Date: 16 July 2025
On this page we describe our loan services. We explain the most important features and functions of our services.
If necessary, we make occasional use of certain technical terms which are specified by law and which we explain in the following text.
This page is for information purposes only. The agreement that you conclude with LGT Bank AG Zweigniederlassung Deutschland (referred to in brief as LGT Deutschland) or with the head office of LGT Bank AG in Liechtenstein (referred to in brief LGT Liechtenstein) contains the legal provisions.
A loan is an agreement that you make with a lender to borrow money. The agreement requires you to pay back the money you have borrowed at a later date.
You enter into a loan agreement because you temporarily need more money than you actually have. The lender is normally a bank.
For consumers like you, there are two types of loan agreement.
If you take out a loan to buy a plot of land, a house or an apartment, this is a mortgage. Other property loans involve a plot of land, a house or an apartment being used as security by a bank. These loans are governed primarily by the Mortgage and Property Loan Act.
If you are taking out a loan for another purpose and if there is no plot of land, house or apartment that can be used as security, this is a consumer loan. These loans are governed primarily by the Consumer Credit Act.
You must pay interest to the lender in return for borrowing the money. The lender normally calculates the interest on the loan as a percentage of the open credit. In addition to the loan amount, you also have to pay back the interest. For example, if you borrow EUR 1000 for a year at an interest rate of 4%, at the end of the year you have to pay back EUR 1040. In other words, you have to pay the lender more than you borrowed.
The interest on loans can be calculated in different ways. The most common types of interest rates are:
If the interest rate is fixed, the amount of interest and the instalments remain the same for the entire period of the loan.
A variable interest rate can change over time. You agree with the lender that the interest rate on your loan will depend on a published reference interest rate. The interest rate on your loan will vary depending on the changes in this reference interest rate. Your repayments will increase or fall accordingly.
Another method of charging interest on a loan is a combination of a fixed interest rate and a variable interest rate. During the fixed interest period, a fixed interest rate is applied to the loan. For the rest of the loan period, the interest rate is variable.
You may have to pay other costs in addition to the interest. These costs will be agreed with you in advance.
You repay the loan in accordance with the terms of the loan agreement.
You have the right to repay the loan earlier than specified in the loan agreement. However, in certain cases we may require compensation for this. The compensation amounts to a maximum of 1% of the amount that is paid back early.
In certain cases you have the right to withdraw from a loan agreement that you have already concluded. This invalidates the loan agreement. You must repay within 30 days the money that we, as your bank, have paid to you.
You can apply for a loan via your client advisor. To do this, you must provide us with certain documents and information. We are obliged to check your creditworthiness. We can only give you the loan if you can make the repayments. We check this carefully before authorising the loan.
Collateral safeguards the repayment of a loan. The collateral represents an alternative source of money for the bank in the event that the loan is not repaid. Collateral primarily takes the form of a pledge of assets.
If you do not repay individual loan instalments, the lender can require you to repay the entire loan. This means that you must repay the entire amount immediately and in full. If you do not pay, the lender can sell the collateral. You may have to pay other costs such as reminder fees and default interest.