Many vendors advertise their loans as a quick loan or a quick loan and an immediate loan commitment. There are two questions:
- How is a fast loan different from a conventional loan?
- How fast is “fast”?
Of course, this raises the question of whether quick loans may be more expensive than loans with a normal payout period.
What makes a quick loan with instant confirmation?
If you need money, you usually need it in a timely manner to create your needs. A quick loan sounds really tempting. But at this point we have to do a bit of clarification.
Anyone who selects a loan as a borrower via a credit comparison portal and applies for it online usually receives an immediate loan commitment if the credit rating is sufficient. It does not matter if the loan is called Quick Loan, Personal Loan, Premium Loan or whatever. The loan commitment and usually the loan application are immediately available as a download and as an e-mail.
At this point, however, the credit chaff separates from quick-loan wheat. Many banks are technologically not yet at the height of what is feasible today. In the worst case, the customer must print out the loan application form, sign it, make photocopies of payroll and account statements, and then, armed with the ID card, return all documents to the bank under the PostIdent procedure.
At this point, the quick loan becomes a “wait-for-call-out-of-time loan”. If the documents are complete at the bank, the loan is usually paid out within 24 hours.
So it’s up to the customer, how long it takes from application to payment. The faster he sends the papers back, the faster he gets his money.
Fortunately, the VideoIdent process has been adopted by many banks. Although this does not eliminate the way to the mailbox, the mail to the bank can be put into the mailbox at any time. The identification requires only a terminal with sound and camera function in order to carry out the legitimization of the home.
A real quick loan uses all the options that the Internet offers today to shorten application processes. If the customer not only has the option of video identification, but can also upload his documents via PDF and make an electronic signature, nothing stands in the way of fast processing by the institute.
In this case, we can speak of a real quick loan, urgent loan or instant loan. The electronic application process merges seamlessly into the financial credit check and transfer of the desired loan amount.
Incidentally, the interest rates are absolutely identical, regardless of whether a customer decides to fully submit the application, or prefer to send his documents by post. The speed of settlement does not increase the price of the loan.
The mini loan as a quick loan
FinTechs have been offering so-called mini-loans in cooperation with specialist banks for some time now. These are loans between 100 and a maximum of 3,000 euros. The application process is extremely slim, sometimes waive the providers even on a request. Minkredits can be paid out within 24 hours, if all necessary proofs are available to the offerer until 14 o’clock. The entire application, including signature, is made digitally.
The thing, however, has a catch. These companies can be paid for the 24-hour processing with a so-called “express fee”.
If you are looking for a real quick loan but do not want to pay any extra costs, you should look for credit providers who are looking for a fully electronic application including a digital signature. He is on the safe side with that.