When applying for a loan from the bank, a large number of forms usually have to be completed. In addition, there is a comprehensive check of your own information. In addition, there is the examination of the Credit Bureau, and in the end it is often the case with established banks that the clerk who records the data for the loan application has no decision-making authority whatsoever with regard to lending. It is not uncommon for the entire documents to be sent between bank branches until the loan is finally approved. This means that applicants for a loan have a more or less long waiting period before the loan is granted. This is a hindrance for some financings, because when using offers in retail, for example, it is quick to act.
In the meantime, many online providers, particularly on the Internet, offer not only particularly favorable interest rates on loans, special repayment options and other advantages as strong competition to established banks. These providers are also very positive when it comes to processing loan applications. The loan with instant approval can now be found very often in advertising, especially with direct banks. The peculiarity of these loans with immediate approval is that the applicant quickly receives information as to whether there is a loan. The loan application is made online. This means that the applicant fills out a pre-made form online, provides the essential information for lending, and the bank then immediately decides whether the loan will be granted. It is important to know that the application and the commitment are initially non-binding, because this is not yet a contract between the applicant and the bank.
After the application and the preliminary approval of the loan, the applicant receives an offer from the bank for a loan. If the applicant accepts this offer, evidence of the applicant’s creditworthiness must now be provided. As a rule, the banks expect proof of a dependent employment relationship that is outside the trial period and that is unlimited. Proof of income must also be submitted for the past three months. Furthermore, a Credit Bureau query is carried out to check the applicant’s creditworthiness in detail. The credit contract really only comes into existence after successful checks.
The loan will then be paid out immediately after successful verification so that the contract is concluded. After the amount of the loan has been transferred to the checking account, the applicant has to wait two to four working days for the amount of credit to be available in their checking account. The advantage of an instant approval loan is that the applicant receives information immediately, often within an hour, whether the desired amount of the loan can be obtained. The applicant can freely dispose of the loan amount for the loan with immediate approval; there is also no obligation to inform the bank about the need for which the loan amount was used.
Due to the strong competition in the lending business, branch banks have also adapted to the conditions that online providers offer on the Internet. Therefore, it can make sense to contact your own bank or a local branch bank for a loan with immediate approval if there is an acute need for money. Again, on the condition that the applicant has provided all information correctly, quick information can often be given during the first application as to whether lending is possible under these conditions.
The prerequisites for the loan with immediate approval
An important prerequisite for the granting of the loan with immediate approval is a fixed employment relationship, which results in a seizeable income. Further requirements are the provision of Credit Bureau information without negative characteristics. Proof of income must be provided by means of proof of income, and the permanent activity, if necessary, be accompanied by a copy of the employment contract.
The Credit Bureau query is carried out by the bank online, which in turn saves time and accelerates the loan with immediate approval, also with regard to the processing and ultimately payment of the loan amount. It is important to know that the lending business can only really come about with a positive Credit Bureau information. The immediate approval generally refers to the fact that a credit transaction on the part of the bank can be concluded if the information from the initial application is all correct and if the bank has checked the applicant’s creditworthiness comprehensively and the Credit Bureau is also impeccable. The loan with variable approval is variable in the loan amounts. From a loan amount of 1,500 USD up to a sum of 50,000 USD, loans can be granted depending on the creditworthiness of the applicant.
Immediate loan from abroad
If Credit Bureau shows negative characteristics, a credit transaction with a bank based in Germany is not possible. In this case, providers from other European countries are available for the loan with immediate approval without Credit Bureau. As a rule, these loan providers are banks from Switzerland that work without lending Credit Bureau. Here, too, the flat-rate application for the loan is made online and a promise to grant the loan can also be expected within a very short time, often within an hour. When assessing solvency, these banks rely on the income and assets of the applicant to secure the loan. We do not provide Credit Bureau information, since Credit Bureau is only a common means of securing credit in Germany. In the case of a loan with an immediate commitment from abroad, which is issued without a Credit Bureau examination and which is not entered in the Credit Bureau even when the loan is issued, the applicant should expect higher costs for the loan.
The banks grant the loan without Credit Bureau, which means that there is no important collateral with regard to the applicant’s examination. Banks can pay for this increased risk in lending through higher interest rates than a loan with a German financial institution. In addition, the borrower may have to expect a limit on the amount of the loan that is below the credit line that the banks set when checking the Credit Bureau. An alternative if your credit rating is insufficient or if the Credit Bureau has negative characteristics is to include a guarantor in the loan agreement. In this case, one should immediately point out the inclusion of the guarantor in the contract when making the first application and, accordingly, also transmit the guarantor’s data with regard to income and financial obligations.
What should you watch out for when you get an instant loan?
Especially with a form of credit that is geared towards high speeds in the approval of the loan, the providers assume that the applicant will need urgent money. That is why there are also dubious providers on the Internet who lay out their advertising for a particularly quick and uncomplicated payment of loans. However, dubious providers can be identified quickly. They can be recognized by the fact that they calculate, for example, preliminary costs for loan brokerage.
In this case, the borrower should pay a commission before the loan agreement is concluded to the credit intermediary, who will only take action and name and contact potential contractual banks. In this case, the applicant can assume that contact with a lending bank will not be established, since these credit intermediaries are only interested in paying the commission and the applicant will not hear from the intermediary after this service. Even if significantly excessive interest or fees are charged for the establishment of the credit transaction, the applicant can assume that he has found a dubious broker. In all cases, it is advisable to refrain from lending despite the urgent need for money. Even if loans with instant commitments are generally somewhat more expensive than classic loans, the conditions should remain moderate.