While the term small loan can be used for loans of different sizes depending on the bank, the immediate payment is basically defined as within two bank working days. Most lenders limit the possible amounts of a loan with immediate payment due to the reduced credit security to a maximum of ten thousand USD.
How to apply for instant disbursement loans?
The application for a small loan with immediate disbursement is mostly done online; The credit shops that are emerging in more and more cities also make fast transfers with small sums, but are more expensive than online instant loans. The legislator prescribes the sending of a personally signed loan application to the lender, which can also be done by fax.
Furthermore, a postident procedure is required for the identity determination of the borrower. This procedure is not necessary if the loan applicant was already a customer of the financial institution. For banks licensed in some neighboring countries, depending on the amount of the loan, it is sufficient to send a copy of the identity card to determine the identity, so that the small loan applied for there with immediate payment can even be transferred within a single bank working day.
In order for the small loan to be paid out quickly, restrictions are required when checking the submitted loan documents, so that some lenders refrain from sending receipts straight away. This increases the risk of default, so that the loan interest for loans with immediate disbursement is regularly higher than for small loans with regular processing times.
Applying for a small loan with immediate disbursement is therefore only recommended if the money applied for must actually be available at short notice. Credit bureau information without a negative entry is usually a prerequisite for quick loan processing and immediate payment.
Loan with immediate disbursement
The promotion of a small loan with immediate disbursement often causes borrowers to submit a loan application without having to compare different offers. The quick payment of the small loan is an attraction for the application, even if the customer actually only needs the money in a few weeks. This procedure is uneconomical, especially since the immediate payment leads to a slightly higher loan rate anyway.
In order for the borrower to receive a loan that is not only quickly paid out but also inexpensive, he compares the loan offers of several banks with each other. The effective annual interest rate, the disclosure of which is required by law, is decisive for the actual costs of a small loan. This includes all costs like a one-time processing fee and is therefore higher than the nominal interest rate often emphasized in advertising for loans.
The nominal interest rate is only important for the borrower if he wants to change the original repayment agreement later, which is rarely the case with small loans. Since a small loan with immediate disbursement is mostly applied for online, the use of a free website for loan comparison is recommended.