Loans with an immediate payment apparently promise the quick availability of the money. Which providers of fast financial aid are recommended for this? – How fast does the instant payment actually work? Are fee and interest traps to be feared, or is the fast payment even part of the normal service?
Instant disbursement loans – always in demand when time is of the essence
There are many situations in life that require a quick financing solution. Loans with an immediate payment promise the fast availability of the required money. Nevertheless, the quick money is not equally cheap in terms of financing costs. By far the most expensive, but also the fastest alternative is to exhaust the credit limit of the current account or credit card. The money is available without further inquiry and at the same instant. The shock of disillusionment comes at the latest when paying interest. Choosing this quick financing alternative is extremely expensive.
The overdraft interest on the current account can currently reach up to 18 percent. On average, they are around 12 percent. The blatant discrepancy between savings interest, installment loan interest and overdraft is now even calling on politicians. High-ranking politicians demand a statutory upper limit for overdraft rates in January 2013. What is right for the banks is cheap for the credit card companies. They too make excessive profits from the fast credit business.
Cheap and fast financing comes from the Internet
Internet banks are established financial institutions that specialize primarily in the installment loan business with private customers. Through cost-saving measures, it is possible for them to grant loans with immediate disbursement on favorable terms and without cost traps. The immediate payment is therefore not negatively reflected in the interest. Additional costs, in the context of about 10 USD, can be incurred through a lightning transfer. Here, too, the online bank does not put the money in its own pocket. A bank transfer is more expensive for the bank than a standard transfer. Only the additional costs of the quick transfer to the borrower are passed on.
The online providers will respond to the credit customer’s request as quickly as possible. The immediate payment means that the loan amount will be made available on the day of the final application processing. As part of the next booking process, it will be transferred to the borrower.
What is the timeframe?
Online banks become active immediately upon receipt of the credit request. Depending on the current workload, the credit application is usually checked on the same day. If all receipts have been properly submitted, the Credit Bureau is clean, then the case is clear. Payment of the loan amount can be arranged without any further questions. The receiving banks often take up to three days before the payment amount is finally credited to the recipient’s account. If an express or lightning loan has been applied for, the payment will be made via lightning transfer.
This special form of transfer obliges the recipient bank to make the money available in the account within 24 hours at the latest. Instant payment loans are part of the daily core business of Internet providers. Paying them back as quickly as possible and without cost traps is part of the normal service.