A property loan is a loan for a single property. It is a purely property-related financing, which is essentially concerned with the quality of the property and the income from letting and leasing that can be achieved from it on a sustainable basis. If a property provides the financing bank with sufficient collateral for its claims to interest and repayment, the borrower's creditworthiness and liability can exceptionally be waived in a credit check. However, since property loans are usually drawn via property companies and the banks will not necessarily rely solely on these properties as a rule, the creditworthiness of the borrower is also considered, at least in the majority of cases. In the case of smaller corporations with a lower capitalisation, collateral such as bank guarantees or letters of comfort from the parent company are used as additional security.
