The global spread of the Internet has brought about major changes in many economic sectors. The finance and credit industry is also significantly affected by this, in addition to established house banks, lenders are becoming increasingly common on the Internet. With the so-called instant loan, they offer a financial product that at first glance combines all the advantages of an interested loan seeker.
A quick completion of all formalities is promised as well as attractive repayment terms that attract loan seekers with any credit rating. With a closer look at the instant loan, the advantages and disadvantages of this loan variant are presented below, which is not equally suitable for every borrower. This article also tells you what “instant loan” actually means.
What does the term instant loan mean anyway?
Instant credit doesn’t mean you get the money right away!
Basically, the instant loan hardly differs from a classic installment loan, which is also offered by many credit institutions on the Internet. What is meant is a loan offer that is processed very quickly by the bank and is therefore paid out to the borrower in a timely manner.
The term instant loan is primarily intended to arouse interest and convince the applicant that his loan application will be processed particularly promptly. In fact, depending on the credit institution, the requester will receive an email from the lender within a few minutes, containing a positive or negative decision to grant the loan. At some banks, an initial conditional approval or rejection is made directly in the loan application process.
The credit institutions create such emails and instant commitments semi-automatically. The only thing that is checked is whether the previously entered data of the applicant are suitable for the potential feasibility of the financing. However, no provider should expect a true instant credit that arrives in their own checking account within 24 hours.
So much time passes before you receive the loan with an immediate approval
If you understand an instant loan to be a loan for which you immediately receive a commitment or rejection, many direct banks and service providers should meet your expectations. The real idea, however, is that of an extremely quick payment of the money, which without exception takes a few working days for an instant loan online.
Even if you can demonstrate flawless creditworthiness and extensive collateral for the instant loan, the credit institution requires proof in writing. It is customary to send proof of salary and similar documents using the Post-Ident procedure; postal dispatch takes one to two days. The applicant can thus contribute to the fast payment of the desired loan by preparing the relevant documents in good time before the loan request. In particularly urgent cases, you can request a bank transfer from the bank so that the money is actually in your account within a few hours after approval.
How to speed up the processing and approval of your loan request:
- Check that the printed loan application is complete and that all important questions have been answered.
- The loan application must be signed by you and possibly a second borrower, sometimes in several places.
- Provide the bank with proof of income (usually the last 3 months) in the form of pay slips, pension notices or similar. to disposal.
- Copy your current employment contract. If you are permanent or have been employed for a long time, this will be rated positively.
- If you generate additional income (eg from renting), please also state this. Every proof leads to faster processing and allocation of the instant loan.
- Enclose a copy of your identity cards (front and back) with the application.
Interest and terms as advantages
A clear advantage of an instant loan is its repayment terms. Compared to the repayment interest and processing fees of the local local banks, the credit institutions have an average lower interest rate on the internet. This is usually due to lower administrative costs due to a lack of a branch system, some traditional banks have even specifically introduced a direct line with cheaper conditions for Internet customers.
The terms are also often more customer-friendly and range from standard values between twelve and 84 months up to 120 months. Special conditions such as the free repayment during the term or the waiver of residual debt insurance make many loan even more interesting. If you as a borrower have no problem not being able to meet your financial institution directly on site, the decision for this type of loan is extremely attractive.