Instant loan – The Fast Track to Money
Are there instant loans and if so which criteria must be met?
Nowadays, the term instant loan is primarily used by online banks to advertise on the Internet. Other terms for the unprotected definition are express loan and short-term loan. With each of these words, the loan seeker should be given the impression that he will receive the requested loan by return mail. Everything goes fast, and his loan application is processed immediately. That sounds good and works fine, if all boundary conditions are right. These differ only in nuances with the lenders, they are in principle the same with all on-line banks. Every loan, every loan is a money lending with the aim to earn on the loan interest .
This applies to microloans in the low four-digit euro range as well as to consumer loan up to the usual amount of EUR 70,000 and more. The bank then forgives a loan if it does not incur any or only a justifiable loan default risk. For this the creditworthiness, the creditworthiness of the applicant is checked. This also happens with a small loan of 2,000 or 3,000 euros. The assurance that the loan will be repaid in accordance with the contract is the regular working or retirement income of the person seeking the loan. A high loan for real estate financing is additionally secured by the land registry entry in the land register.
Need for money in everyday life – instant loan as an ideal solution
It belongs to the character of an instant loan on the Internet that the applicant immediately, so really within minutes to get a first information from the online bank. He knows immediately whether his application is promising, whether it is rejected, or at which point the loan seeker still has to improve his creditworthiness. This is made possible by a largely automated test procedure for the individual loan application. In most cases it is an instant loan with .
The loan seeker clicked on the ” clause” in the online application. He has given his OK to the lender, as it is said, the of the applicant may see. At the same time, this means that its loan rating is evaluated on the basis of the score. This base score is the percentage of all positive and negative information recorded in the database. All this happens, metaphorically, at the push of a button of the clerk at the online bank. He himself has virtually no influence on the loan rating. The computer program entered into the EDP indicates whether and to what extent the applicant is loanworthy.
Based on this, a ready-made letter will be sent by e-mail to the person seeking loan. In this way, the preliminary ruling on the instant loan comes about. With a no, the process is done, while with a yes now only the actual work begins. This is the same for all banks and savings banks, because all are subject to almost identical rules and regulations. The correspondence by e-mail and files shortens the processing time compared to sending by letter, whereby even with an instant loan on some postal items can not be waived.
Low instant loan simplifies the decision making process
The decision on a low instant loan is much easier for the lender than that for a real estate loan in the six-digit euro range. Consumer loans and small loans are usually purpose-free, ie without specification of the online bank. The borrower can freely decide whether to use the small loan or instant loan for a household purchase, for a dental treatment or for the next vacation. The only thing that matters is that its loan rating is correct and that the loan is repaid on time. With the payment of such an instant loan can be expected within a few working days after the first loan commitment. The loan seeker can actively work on it. He will be informed immediately which documents are expected of him. Without exception, they refer to their economic situation with income, expenses and assets.
Save costs with early loan comparison
On the Internet, there is the opportunity for an extensive loan comparison on online portals. Only a few details are required. After a last mouse click, the loan offers of those banks that participate in this loan comparison are displayed in a ranking. In order to get the largest possible overview, the loan comparison on several online portals is not only helpful, but also makes sense. By no means all online banks are present on every online portal. The rejection at one online bank should not discourage the person seeking loan but start one, two or more attempts.
Each online bank has its own individual discretion with its guidelines on instant lending. This has a serious impact on a loan-based instant loan. loan-dependent means that the instant loan is awarded not only for a very good, but also for a good or low score. The online bank sees this lower creditworthiness as a higher loan default risk. However, it does, and can be compensated by the fact that the offered effective interest rate is significantly higher than the instant loan with first-class loan rating. This is the opportunity of the applicant. It does not depend on the super-cheap loan interest, but rather on the fact that the instant loan is approved and paid out to him as quickly as possible. The online bank knows that too. In the end, both sides get what they want; the applicant the instant loan, and the online bank the significantly higher lending rates. The loan comparison helps to reduce lending rates as much as possible with a favorable offer, and still get the desired loan amount paid.
Instant loan without quite worth considering
Without means that the online bank waives the loan check on the , and that the approved instant loan is not registered in the database. For the he is like nonexistent. In this respect, it will not be taken into account in the future calculation of the base score. For the loan seeker that is quite an advantage. The instant loan without is often the last solution not only for a weak or bad score. He is almost the only way to record an instant loan very confidentially and discreetly. Without no one knows anything about the instant loan except the online bank. With , on the other hand, everyone knows about it, who has access to the database. The instant loan without is offered by foreign as well as by a few German online banks. The loan seeker recognizes that the online application lacks the ” clause”.
Instant loan from application to payment:
- Online application is completed on the Internet by completing the entry mask Decision on instant loan with or without [ clause yes / no]
- Immediate response from Onlinebank comes via email
- With prior approval, it continues
- The letter is accompanied by a loan agreement and an identification form
- The documents to be provided in the original are listed individually
- Postal identification on the form is carried out in a branch of
- Optionally, the newer videoident method is offered by video chat
- Send all documents completely and as soon as possible by mail to the online bank
- Submitting these documents by fax can shorten the processing time
- Online transfer of the instant loan is made to the specified checking account
- Individual online banks alternatively offer the cash payment of the instant loan with
General requirements to receive an instant loan:
- Business ability of the loan seeker
- Permanent residence in Germany
- Fixed employment with regular income above the attachment exemption limit
- Own checking account with a German bank