Lenders speak of an instant loan if there are no more than two bank work situations between the application for the loan and the receipt of money in the customer account. This is usually the shortest possible processing period, since the documents relating to the Postident procedure are not received by the financial institution until the day after the loan application. However, there are ways to transfer an instant loan to the applicant’s checking account today.
Simplified identity verification procedures
The European Union (EU) prescribes proof of identity for financial transactions, but leaves the exact design to the individual member countries. While copies of ID cards are not recognized as such in Germany, they are sufficient as proof of identity in some countries. Most often, an instant loan that is paid out on the day of the application is processed via a bank registered in Luxembourg.
If the borrower already has an account with a financial institution or has previously taken out a loan, the identity check has already been carried out, so that a bank registered in Germany can still transfer the requested instant loan today. The law also allows the variant that the borrower applies for the instant loan on the Internet and then presents his identity card personally to a branch of the relevant bank.
This procedure requires that the instant lender maintains a branch near the customer’s home. In addition, banks rarely support this approach because they move part of the credit processing from the Internet to the branch, which is not desirable for cost reasons.
Prerequisites for quick loan payments
For processing reasons, an instant loan can only be paid today if the borrower submits his full application by a time specified by the bank. Furthermore, loan applications are usually not processed on weekends, public holidays and bank holidays such as New Year’s Eve and Christmas Eve; Depending on the location of the bank, Rose Monday can also be considered a regional bank holiday.
Since the limited processing time does not allow a full review of the submitted credit documents anyway, some banks do not send the proof of income that is usually required for a loan application. If customers want a quick loan payment, they are ready to pay a reasonable interest surcharge for their instant loan.
It is understandable that instant loans cost higher interest rates than loans with a customary processing time, since the fast processing is an additional service and the less careful credit check increases the risk of default. To ensure that the instant loan surcharge is not too high, applicants compare different offers.
The credit shop as an alternative
Credit shops advertise with a quick credit decision. This is a loan with personal advice, before which the clerk carefully checks the creditworthiness. The identity is verified on the spot by personally presenting the identity card, so that there is no delay due to the Postident procedure.
After the applicant has submitted all documents, the bank clerk in the credit shop can arrange for an approved instant loan to be released for transfer today. However, the prerequisite is that the desired loan amount does not require the approval of the loan by a manager.