There are numerous forms of credit in Germany, most of which are issued by banks. Whether it is a normal loan, a special form of loan or a mortgage, you often have to prevail against the banks and prove liquidity.
Of course, this should also be the case when lending money. Loaning is a simplified form of loan. In principle, official banks do not lend money because they work with the usual loans. Lending money is actually very easy and quick and belongs to personal loans.
No special features and requirements
Lending money can be done quickly and easily from private to private. A far-reaching USD examination is not necessary, only the two parts, the seeker and the giver, must be found. It does not matter whether this happens among friends or acquaintances or via a portal.
Via certain portals, advertisements can be created for people who either want to lend money or want to borrow money. Both sides benefit from this. The one who borrows the money has short-term funds that are needed. The one who lends the money and currently has left over can successfully increase his capital due to the interest.
With superfluous funds, this is an excellent opportunity to easily increase capital. There are no prerequisites on either side for the conclusion of a loan. The two parties concerned agree, so to speak, of their own accord. With different portals, it can be a basic requirement that certain requirements be met.
However, these are prerequisites that should be met each time a loan is drawn. Settlement of the business takes much less time than a loan from the bank.
Collateral and interest on money lending
The lending can take place immediately and easily, but security and conditions are important. Every investor, i.e. lender, wants to capitalize on a loan granted. Therefore, a certain interest rate is agreed that the borrower has to pay. The lender decides what interest rate it is, which of course the borrower still has to accept. As a rule, the interest rates are somewhat higher than with normal loans, which is due to the relaxed conditions and the quick availability of the money. However, this depends on the lender and is completely different.
In addition, collateral is usually required. The vehicle is often used for this, but this can still be used, but until the last installment has been paid off, the vehicle letter is handed over to the lender. This may not do anything if the installments are always paid.
All of these conditions are set out in a contract that must be signed by both the lender and the borrower.
Borrow cash immediately?
With the exception of mortgages, car loans or other dedicated loans, all other forms of credit are cash loans. The bank usually transfers the credit to its own account, from which it can be withdrawn immediately.
With an appropriate income and a good credit rating, it works very well. With a personal or acquisition loan, the money is available in the account in about a week. If only little money is needed, the overdraft facility is quickest but expensive. It can be cheaper to loot the credit card.
This usually allows a period of 54 days to settle, often at zero interest. However, be careful, if this period is exceeded, it can become very expensive.
It becomes more difficult when there is no or no good income. The creditworthiness is poor, there is no overdraft facility or is fully used and the creditors knock on the door. Then it becomes very difficult. However, the situation is not totally hopeless. Always talk to the house bank first. Long-term customers often have goodwill.
Some hidden reserves bring money instantly.
Hopefully one of them are good friends or helpful relatives who can be pumped up. Sell unnecessary, no longer needed items from the household, basement and attic on the Internet or flea market. The Leihaus is a classic for quick fundraising. There is cash for a pledge such as jewelry, electronics, cameras, cars, motorbikes, and also boats and so much more.
Unfortunately, the pawn shops are also very expensive. Interest rates are regulated by law, but there are often hefty fees. Such a 250 USD loan in the pawnshop doesn’t pay off. Because including a fee of 5 USD per month, this translates into an annual interest rate of 25.4 percent.
The microcredit is relatively new and certainly helpful.
For some time now, so-called microcredit has been offered by specialized companies and banks. As a first-time customer, the amount that can be obtained is modest (100 to 200 USD), but after the timely repayment, a higher loan can be applied for (600 to 3000 USD depending on the company). These loans are granted at very short notice, 45 days to 2 months, but the granting is very quick. Sometimes the same day and everything is done via the Internet or cell phone. Better chances for a loan approval despite USD entry.
Interest rates are high at 12 to 15 percent APR, but with this short term they are more of a mess.
Short-term loans, also called small loans, are ideally suited for financing unplanned bills, urgently due loan installments, repairs of the washing machine, dishwasher, and refrigerator, unforeseen additional payments for the electricity or gas bill, excessive telephone or cell phone bills, for penal notices or fines.
In Germany, a borrower with a USD rating in score range A – C and sufficient, regular income is creditworthy. Banks assess the credit applicants’ creditworthiness based on the probability of default. The probability of default is calculated from data, statistics and internal bank guidelines.
The guidelines refer to the banks’ experience with regard to the probability of repayment on installment loans.
It is often very promising to get money straight away. It is advisable to use this option only with the necessary care. A borrower falls into the debt trap too easily. It is important that sufficient collateral is always available so that the money can always be repaid on time. If you take this to heart, you can apply for your loan immediately and still have scope for other pleasant things in life.
In a financial emergency, it is very important that money gets into the account quickly. A lightning credit with an immediate payout can be just the right solution in such a case. Interested parties should, however, inquire about the terms of the loan and read the small print in the loan agreement in order not to tear a hole in the empty household budget again.
A loan with immediate disbursement is usually a so-called small loan. These amount to up to $ 5,000.00 and are offered by various banks. The application can either be made directly to the banks or carried out online using the online form.
Advantages of an instant loan
The advantage is clearly that with a positive acceptance and payment, money is usually available within 24 hours. In this way, the minus on the account can be compensated or important payments made. The money can usually be used freely. However, borrowers should note that there are also loans for different uses.
For the purchase of a vehicle, for the renovation of the apartment or house or simply for a debt rescheduling, banks offer various loan options with different terms.
The application and the loan payment
The most effective and fastest way to apply for a loan is via the Internet. Credit institutions also offer customers the option of using the free loan calculator. The desired amount can be selected here and the monthly installments can also be determined here. A comparison among the banks is advisable in any case, because the interest and the processing fees can differ considerably.
An interest rate of over 10% is considered very questionable these days and prospective customers should definitely rethink a premature signature. A usual and average loan interest rate is around 5 percent. If you opt for a loan with a fixed interest rate, you may even get an interest rate of 3.5%.
Instant withdrawal fee?
Banks usually charge a non-significant fee for an instant loan. The reservation for a garnishment (if the installments are not paid) can also cause enormous costs. It is worth talking to the bank advisor if these costs and fees cannot be waived. If the instant or instant credit is applied for online, the applicant usually receives an acceptance or rejection within a few seconds.
In the background, a system checks the information and decides whether or not the loan application is approved for further processing and checking. If the applicant has a fixed income and the monthly fixed expenses to be paid are not too high, there is actually nothing standing in the way of a positive commitment for the loan.
Some banks only need a few hours for the exact check and the desired loan amount is usually transferred to the applicant’s account on the same day or the following day.