Immediate loans give consumers peace of mind that they will receive the loan they are applying for. Usually, they will undergo an online check after completing the loan application. The applicant shall carefully consider what income it may take into account in determining its monthly income so that the bank does not subsequently withdraw the immediate promise. Instant loans are among the special benefits loans not every financial institution offers. On the other hand, various banks have specialized in simple lending with immediate decision.
The instant confirmation and the instant loan
Not all instant-lending loans are instant loans at the same time. With the latter, the lender guarantees a quick cash payment. For instant loans or loans with immediate payment, two to three bank working days between the sending of the application and the receipt of the loan amount are largely customary in the current account of the borrower. Instant loans are almost always associated with an immediate commitment, as such is indispensable for rapid application processing.On the other hand, an immediate loan commitment does not automatically mean that the bank will instruct the loan immediately. In most cases, consumers will be able to obtain loans with instant pledge and a standard payout period of one to two weeks. This applies to any purchase financing in which the purchase price can be paid after receipt of the invoice. The immediate credit commitment ensures that the purchaser has the required funds at the due date of the commercial invoice.An immediate payment of the desired loan amount is only necessary if the customer has to pay the planned purchase in cash. Since additional benefits are associated with increased interest rates and thus additional costs, loans with instant pledge and standard bank payout period are the cheaper option than instant loans.
The binding and provisional commitment
Most banks grant loans with immediate conditional reserve. They point out in their terms and conditions that the payment is made only if the data of the documents to be submitted match the details in the loan application. Conflicts due to deliberate misrepresentations are extremely rare. On the other hand, the fact that the bank calculates a lower income than the applicant is occasional. The reason for the difference in income determination is that, unlike consumers, financial institutions often do not count all available income as such.
To avoid misunderstandings, credit applicants with additional income carefully read all income calculation details before completing the loan application. The most common is the exclusive consideration of the labor income from the main activity. Few financial institutions also include ancillary earnings. There are also different calculation methods for applicants with monthly changing wages. The most common ones are the evaluation of the average earnings of the last three months and the consideration of the lowest earnings during this time.
In order for the financial institution to actually pay the amount after a non-binding immediate commitment, the customer must determine the monthly income specified in the application on the basis of the requirements. Loan offers with a binding immediate promise are predominantly to be found for low amounts. In most cases, lenders refrain from completely checking the income statement. This simplified procurement procedure does not exempt credit applicants from the obligation to correctly complete all the information in the application.
Most instant loan offerings are aimed at clients with good schufa, and a few banks and some credit intermediaries make it possible to take out loans without delay, even with a soft negative feature in the Schufa statement. The joint application by two persons is basically possible for loans with immediate promise, but is supported for this type of loan only by some banks.
Carry out a careful comparison of offers
The immediate loan commitment is an additional service provided by the bank compared to the traditional loan procurement procedure. If banks offer instant-lending and parallel bank lending, interest rates for the former are usually slightly higher than the lending rates for ordinary loans. This is understandable due to the additional performance of the fast lending decision desired by the applicant. In order to get the cheapest possible credit, consumers compare the interest and the terms of contract before submitting an application.In the search mask you can set that only loans with instant confirmation should be displayed. The most important selection criterion is the effective annual interest rate. Flexible repayment options, such as the occasional suspension of installments and the right to early loan repayments without offsetting prepayment interest, are a valuable asset over rigid conditions.It makes sense to accept a marginal interest premium for a loan with immediate approval and partially flexible repayment compared to the purely cheap but rigid offer.