An instant approval loan is no longer a rarity, but is normal for credit inquiries made online. However, always on the condition that the loan applicants have the appropriate creditworthiness – i.e. are creditworthy.
The Internet has made it possible for consumers today to submit their credit requests directly online. The loans offered in this way are standardized banking products that are processed using an automatic process.
A credit with an online instant approval requires that the loan applicant has faultless credit bureau information, can demonstrate a sufficiently high attachable income and is not part of a risk group for whom an installment loan with instant approval is not possible.
How the loan is processed with an instant decision
Consumers who submit their credit inquiries online can do so 24 hours a day, 365 days a year, and can expect their credit inquiries to be processed even when there are no employees on site at the bank. The banks use appropriate software to process credit inquiries from private individuals, which makes it possible to automatically obtain credit bureau information, carry out the household calculation and evaluate the loan applicant using the scoring procedure. If everything fits, the credit bureau information is in order and the net income guarantees the applicant’s performance, the loan application is processed within a few minutes and an automatic loan decision is made, so that the loan is approved online with immediate approval and the confirmation is sent to the customer by email.
At times, consumers believe that an instant loan is also an instant loan. However, this is not the case, because the approval of loan requests and the payment are two different things. The approval process is fully automated, while personnel are still required to pay out a loan because the contract documents have to be checked and the payment instructed.
Same day payout loan
Occasionally, the Internet advertises that there is credit with a payment on the same day. This should then be a credit with lightning transfer, the credit intermediary apply. However, advertising is one thing and reality is usually another. From a purely organizational point of view, it is not possible to apply for a loan online in one day and then to expect that the loan will be paid out on the same day. In order to pay out a loan, the signed contract documents must be in the bank.
This means that there is always a postal route in between and the best way to transport the mail from A to B is from one day to the next. Anyone who applies for a loan with immediate approval today and has the commitment, must therefore assume that it is completely unrealistic to expect that the loan with payment will be available on the same day. Even if a loan with lightning transfer is promised, the money must be credited to the customer account. Advertising promises the customer more here than is technically feasible.
Credit in 24 hours is often just a promotional promise
If banks or credit intermediaries advertise that they can grant credit in 24 hours , this does not mean the complete process from the customer’s request to approval and payment. Due to the processing sequence, 24 hours is not enough. Completely processing a loan in one day from the request to the payment can only be possible if the customer goes to a branch, but even then it is a problem to get a decision so quickly, to submit the required documents and to the Payout then to wait.
The processing process is designed so that there is no credit in 5 minutes. Advertising that promises otherwise should attract customers. Past experience has shown that customers who are in a hurry respond to such promises and request their credit where they are promised the credit in 24 hours. However, this only means that the loan is processed in one day and this is already a reality for private individuals today when applying for credit online.