There are situations in life where you need financial help quickly. Either because a family member or friend is in need, the car or an expensive household appliance has a defect or just because it offers a lucrative business opportunity. For such moments there are instant loans from banks. But what does this term actually mean? And how do you get an instant loan from banks?
Bank instant credit: explanation
As a borrower, you have to be careful when expressing instant credit. Because the banks use this term with different meanings. An instant loan can be a loan that gives you an instant commitment but no immediate payment. An instant loan is also a loan that gives you an immediate payment of the loan amount. Most of the time, however, an instant loan is a form of loan in which you receive an immediate commitment and prompt payment (within 24 hours) of the loan amount.
An instant loan is associated with an increased risk for banks. They have less time to check an applicant’s creditworthiness. For this reason, interest rates on instant loans have been significantly higher in the past. In this way, the banks protected themselves against financial losses due to loan defaults.
However, this trend has reversed as a result of the surge in liberalization in the financial market, which has occurred primarily through the Internet, through which all banks in the world have direct access to German customers. Due to the competitive pressure, interest rates for instant loans on the Internet have dropped significantly.
Immediate loan from banks: What conditions do you have to meet?
If you want to avail yourself of an instant loan from banks in the Federal Republic of Germany, it checks the Credit Bureau entry at the beginning so that you can judge whether you are creditworthy or not. The Credit Bureau entry should be positive to get the loan.
If it is not, you need a guarantor who can repay the instant loan in an emergency. In addition, you should be able to show a fixed salary to make it clear how you want to enable the repayment of the instant loan.