Instant credit: definition, advantages and disadvantages as well as suitable providers!

Instant loan or the loan with immediate payment – what is meant by that in detail? Anyone who plans a major purchase today and ultimately wants to realize it usually ends up at his house bank. Purely habitual, this is the first point of contact to find out about the possibilities of loan financing. Although the financial life is not determined by loans (installment credit, instant loan, quick loan, lightning loan, etc.), yet loans of all kinds play a very important role. For example, if you want to buy a new car, you will usually finance this new car with a cheap car loan. The same applies to the acquisition of a condominium or even a house by means of real estate credit. There is no doubt that a loan will always come first when it comes to financing such plans.

Of course, statistically, this can also be proven, because over 17.5 million current installment loans in Germany alone are a pretty clear statement. Undoubtedly, the willingness of people to finance part of their consumption on credit is high. This results in a corresponding credit potential for the banks. For example, banks now offer loans specified for each type of consumption and financial special situation, such as instant loans.

Meanwhile, there is no longer just the conventional installment loan, but also those instant loan. But what exactly is an instant loan, how is this type of loan defined and how is this type of loan different from the classic installment loan? Actually, the definition of “instant loan ” results from its word components “immediate” and “credit”. This means the immediate receipt of the desired loan amount after application and the possibility of free use of the instant loan. In this respect one finds the instant loan also under the terms of the TactCredit as well as under the designation Credita. Not infrequently, the instant loan also appears as an online loan with immediate approval.

Probably the most common form and most widespread understanding of an instant loan is probably the credit line, which gives consumers the opportunity to use a one-time granted financial framework (credit) on their own checking account at any time of the day or night, without being subject to any requirements such as a committed use of the loan amount committed to feel. But in addition to the, often associated with the terminology of the credit line instant loan this type of loan is in principle to understand differently, because an instant loan is rather a readily available installment loan with all its classic credit features meant.

Main features of instant loan

Main features of instant loan

An instant loan is therefore a classical loan on a monthly installment, which is given by non-fixed financial institutions to solvent creditors in the context of a rapidly accelerated loan application and processing process and is therefore used to meet private needs without regard to a purpose specified by the bank can. The instant loan, which is usually also dubbed as online instant loan, is basically a classic installment loan, which in our modern times of the Internet is usually awarded by so-called online banks or direct banks. Modern instant loans are characterized in particular by fast loan processing and loan disbursement, as the entire application and processing process is usually automated.

The terms of an instant loan

The terms of an instant loan

Instant loans can have a credit range of € 500 up to € 50,000 depending on the bank’s offer. Most banks active in Germany, however, set a minimum loan amount of 1000 €. However, the mini-loan providers are the exception to the short-term loan offer with significantly lower loan amounts. The general maturities for this type of loan correspond to those of classic installment loans and range from at least 12 months to a maximum of 120 monthly installments. Pericredit offers of the banks also often contain special repayment possibilities and even installment dropouts or so-called payment pauses. In addition, an online instant loan from direct banks at the effective annual interest rates is often cheaper than the installment loan of the house bank. Direct banks can use their online loan offers due to narrower structures, the resulting cost savings in the form of lower interest rates to the credit customers pass. A clear commercial gain for credit customers!

Instant Credit: The Benefits

Instant Credit: The Benefits

This form of credit has as its main feature an advantage that more and more customers are learning to appreciate: the online application and rapid lending. An application can be made at any time, provided you have an online connection. Advantageous only by the fact that you can save yourself the way to your own house bank and thus is independent of opening hours. Especially interesting for those people who are heavily involved both professionally and privately. As already mentioned, in the case of an instant online loan from a direct bank, the interest rates are usually cheaper compared to the house bank.

Instant loan: the disadvantages

Instant loan: the disadvantages

However, such an instant loan has not only advantages, but sometimes disadvantages. Thus, borrowers have to apply for this loan alone, that is, without the supportive activity of the banker of his trust! Why is this? The answer to such a question arises from the nature of the loan itself: the instant loan is a loan product that is granted almost exclusively through a bank’s online offer. A point that can be troublesome and problematic especially for people with little experience in online finance. However, the development of online financial products is progressing rapidly, so applying for an instant loan has become relatively easy at the moment.

Another disadvantage is that this type of loan can not ALWAYS be approved promptly, contrary to the expectation of the credit customers of direct banks. Although applicants often receive a credit decision after just a few minutes, it is not necessarily final. It can only be considered as a preliminary approval for such a loan. Only after the submission of the salary and other required documents, the credit can be finalized. Due to the postal service times, however, a processing time of a few days must be calculated here.

It is therefore here in Pericredit offers a bank explicitly ask for the processing process, if the instant loan is actually needed within 24-48 hours workdays!

Tip for instant loan

Tip for instant loan

It is undisputed that the conditions for a classic installment loan vary widely from provider to provider. In addition, they are often influenced or made dependent on their own creditworthiness. These points undoubtedly also apply to the offers for an instant loan that can be found in the market or internet. So it is also recommended when looking for an instant loan, similar to normal installment loans to use corresponding credit comparison portals. These comparison portals help to get a first overview of the current conditions for an instant loan.

Although it may sound logical to some extent, going to the house bank should not necessarily be the first step in finding a loan. The reason for this is the following: It is simply a fallacy that as a long-standing banker basically get better conditions for a loan. The bank simply has no reason to offer them supposedly better credit terms than existing customers.