If a loan is needed, the consumer should be well prepared and always be able to present a financing concept to the bank. For various reasons, an unexpected invoice or repair or a financial bottleneck, a lightning credit with immediate payment must often be taken out.
Short-term decisions often require
If the customer needs funds that can no longer wait, a lightning credit with an immediate payment can be taken out. The application is then often made via the Internet or by telephone. A bank call at the house bank first requires an appointment, which could take days. So the only way is often the Internet, where lenders give a instant loan with instant disbursement.
The loan is nothing more than an installment loan. Payment is made in monthly installments over a specified period. Since these loans are often granted on the Internet, there are no personnel or administrative costs, which makes the loan very cheap. However, the applicant must forego a personal interview partner, as with the house bank.
As soon as the customer has completely filled out all the information, he can receive a confirmation within a short time. In some cases, this only takes a few minutes when the customer has submitted or sent all the information and the necessary documents.
The only way to get such a loan from a house bank is to use a credit facility. Anyone who has already used this knows how high the interest can be and it is very difficult to get out of this overdraft again, especially with larger amounts. A way out of this overdraft facility is often just a debt rescheduling loan.
Selected customers can take advantage of the loan
When lending, banks make sure that the customer has an income that allows them to get a loan. For example, the income must correspond to an amount that can be attached in the event of a loan default. The bank will certainly not give notice at the first missed installment, but should it happen more often, then there will be a garnishment of wages.
Should customers not be able to show the required income, collateral must always be available that can cover a lightning credit with immediate payment. Collateral is often used, especially for part-time workers or low earners. These collateral are either life insurance or a bank guarantee. The customer should always choose a guarantee if he has the choice.
Life insurance has to be taken out over several years, which is not worthwhile for a loan that can be paid off in half a year. The insurance would just keep going and that means additional costs.
A guarantee, on the other hand, is used much more often and enables the borrower to take out a loan. The customer has to take care of the guarantor himself and should make sure that it is someone he can trust. This guarantee is sealed as soon as the guarantor signs the loan agreement. With his signature, he is automatically liable for all of his assets.
Banks only use the guarantor if they are unable to debit the installments from the borrower’s account. This is mainly because the account is insufficiently covered and the installments cannot be debited. Then the installment is debited from the guarantor’s account, who has to get the money back from the borrower.