An instant loan is, in principle, a normal installment loan, but the credit check is simplified so that the loan can be approved and paid out very quickly- There can only be 1. In addition, the loan amount is usually limited to 5,000 euros. After the payment, an instant loan no longer differs from a regular installment loan. Before that, however, there are clear differences.
How fast do I receive the money?
The loan payment is possible 24 hours after the credit check. But even if one speaks of an instant loan, from the first application to the payment is more likely two to four days realistic, due to identity verification and maturity in the mail order.
Here is a more detailed breakdown that includes rough times:
- Non-binding commitment: Immediately
As a borrower, if you file all the required documents in full, you will actually receive a commitment directly, provided that your loan is approved. In most cases, however, this commitment is not binding, especially if you have applied for the instant loan online. The commitment is subject to the credit check, which also includes a query of the Schufa data by default. An instant loan for the unemployed and other persons without a regular income is therefore excluded.
- Credit check: approx. 1 workday
The credit check is usually completed on the same day or the next working day at the latest so that you receive a binding commitment from the bank.
- Payment: Approx. 1 to 2 business days
With a branch bank, an immediate payout is then possible, with online banks you usually have to take into account the usual terms of credit transfers – but some banks also offer lightning transfers, which are in any case received the same day. In the case of a branch bank, in the ideal case, you can actually receive the money on the same day; however, it usually takes one to two days to disburse.
Is there an instant loan without Schufa?
In principle, instant loans are also possible without Schufa query, but only a few German banks refrain from such a credit check. Such loans are therefore often offered by foreign banks, for which the Schufa data plays only a minor role. However, a sufficient credit rating is also a prerequisite for a payout.
In addition, the banks usually require a much higher interest rate and the payment takes more time than German banks. An instant loan without a Schufa query should therefore only be an emergency solution if the money is really needed urgently, but there is no other possibility of financing.
Why can an online instant loan be faster than via a branch bank?
The biggest advantage of an online instant loan is the immediate provisional commitment. For a branch bank, on the other hand, you would only have to arrange a consultation appointment, which only rarely takes place on the same day. As time sweeps into the country, you have already submitted all documents online and possibly received your confirmation.
And even if the payout in the online process can take between one and two working days, the branch bank rarely recovers the time difference that arose during the consultation.
What advantages and disadvantages does an instant loan have?
One of the biggest advantages of an instant loan, of course, is the short-term commitment and the quick availability of the borrowed money. It enables earlier planning of projects. On the one hand, strong competition among providers increases the likelihood that they will generally receive an instant loan. On the other hand, it increases the chances of a low loan rate.
However, instant loans also involve risks. Most of them are based on the applicant’s situation: those who need credit immediately sometimes forget, given the urgency of scrutinizing all conditions and making comparisons. This can cause the loan rate to be unnecessarily high or other conditions inappropriate. In addition, comparatively many dubious providers take advantage of this circumstance. Finally, the instant loan is not suitable for larger sums and long-term planning such as those required for mortgage lending.
Is not it easier to overdraw the account instead of applying for an instant loan?
Basically yes, but you should not ignore the high disposition and overdraft rates. Sometimes you pay 12 percent and more for the overdraft – as an instant loan is often considerably cheaper.
Does the instant loan affect my Schufa badly?
With the conclusion of a loan, this is communicated to the Schufa and other credit bureaus. A structural deterioration of the entry thus does not occur automatically. Although banks now learn that you are repaying a loan with part of your income, if you successfully repay the instant loan, this will also be noted positively in the Schufa entry.
By the way, there is no difference between a regular loan with an instant loan, because the speed of the payment is irrelevant for the Schufa entry.
Is it possible to dispose of the instant loan freely?
In principle, yes, because similar to a regular installment loan and the instant loan is free for the purpose. However, if you have already decided on a loan application for a fixed purpose, and for example could benefit from more favorable interest conditions, this must be adhered to.