The immediate disbursement of loans does not mean that the customer receives the money taken in at the cash register of the financial institution. Payment in cash is almost only possible in the pawnshop, while banks generally transfer loan amounts and only in exceptional cases agree to cash payment at the till.
Most credit institutions use the term instant disbursement as a synonym for instant credit and understand it as credit disbursement within two bank working days. Various definitions classify loans up to the amount of 5,000 USD or generally all consumer loans granted for a specific purpose as small payday loans. What all small payday loans have in common is that the lender does not request any further loan collateral in addition to the regular income.
When looking for a small payday loan with immediate disbursement, consumers consider that the instant approval does not necessarily lead to a quick payment. The immediate approval only means that a credit institution determines immediately after receiving the online loan order whether it can approve the loan. A mere immediate acceptance is also partially provided that the documents to be submitted confirm the information provided in the application.
How the loan payment can be shortened to a bank processing day
The fact that a small payday loan with immediate payment can only be credited to the customer’s checking account after two bank working days is primarily due to the Postident procedure. The creditor receives the identity confirmation only after one working day due to the mail duration.
Before he has received the form, he may not pay out the loan amount. The decision for the partially offered Prior1 transfer means that the amount of money is received in the recipient’s account a few minutes after the transfer. It therefore shortens the processing time of a small payday loan with immediate payment, but is associated with high costs. A bank can pay out a small payday loan at no additional cost for a wire transfer if the applicant is one of their existing customers.
In this case, a new identity check is superfluous, so that the transfer can be arranged as soon as the loan application is received. This also applies to credit institutions with a Luxembourg banking license. Unlike domestic banks, these may recognize a copy of their ID as proof of identity, even if they receive the document by fax.
This relief also applies if the bank licensed in Luxembourg has branches in Germany. It is of little importance that copies of ID cards may be copied after a document has been submitted by a bank employee, but not for faxing, since copies of ID cards made without authorization are not punishable by law. On the small payday loan offer a new product.
They enable customers to repeatedly request a small payday loan with immediate payment after a one-time registration. The relevant providers limit the loan amount to three-digit to almost four-digit amounts and carry out an extensive credit check before the first loan payment, so that the first small payday loan requested through them is not yet linked to an immediate payment. All other small payday loan applications, however, are serviced immediately. The special variant of the small payday loan with immediate transfer is primarily intended as an alternative to the overdraft facility and is associated with short terms. It is therefore particularly suitable for borrowers who want shorter loan terms than a year.
The immediate payment is useful for income from different sources
Due to the promised fast transfer, the financial institution can only check the submitted credit documents for a small payday loan with immediate payment on a superficial or random basis. Consequently, various online credit banks do not provide proof of income when applying for a small payday loan with immediate payout.
The query of household income in the loan application form is mandatory and therefore also takes place if the applicant does not have to provide his information. At the same time, he remains obliged to provide honest information about his income situation. If he violates this obligation, the financial institution can withdraw from the loan agreement at any time and reclaim the entire outstanding loan amount.
This right exists even if the customer has paid back all credit installments on time. When calculating your own income, you are allowed to include all other income in addition to your main income. In this way, the small payday loan with immediate disbursement and without proof of income precludes the credit bank from calculating the income differently than the applicant and refusing to grant the loan even in the event of a provisional immediate approval. Different views on the crediting of income components are conceivable for all additional income and the crediting of benefits in kind provided by the partner.
To get a cheap small payday loan with immediate payment, an easy online loan comparison is required. This is made more difficult by the fact that many lenders assign interest rates dependent on creditworthiness, whereby they rate the creditworthiness based on the credit bureau score, since their own creditworthiness calculations make it necessary to request extensive application documents. Too many loan applications reduce the creditworthiness according to the score.