A dignified funeral is very expensive and often costs 5,000 to 10,000 USD. This applies to both earth and cremation. If the deceased has not made sufficient provision and has, for example, taken out life or death insurance and the relatives do not have the necessary cash, they often cannot avoid a loan for the funeral.
Such a loan can be taken out not only at the bank, but also at the funeral home. Both variants have their advantages and disadvantages and should therefore be weighed up thoroughly before a final decision is made for a loan for the funeral.
Loans from the funeral home
In order to be able to grant a loan for the funeral, most funeral homes work with various branch or direct banks. This enables them to offer their customers a loan for burial in the amount of the actual funeral costs if required. The only requirement for this is that the customers are creditworthy and have both positive Credit bureau information and a regular income. If the loan is approved, it must then be repaid in equal monthly installments over a precisely defined period. The funeral home bills directly with its partner bank.
Installment loans from the bank
A funeral home loan is not always the best solution. Under certain circumstances, it could be very advantageous to take out a loan from your own bank or another German branch or direct bank. Such loans are usually freely available and can then also be used for burial. With a normal installment loan, there is often the option of agreeing special repayments or early redemptions for the loan at any time. For example, if an inheritance should arrive, the loan could be repaid very quickly.