If an expensive car repair is due, if the washing machine is broken or if the account is badly overdrawn, a loan can be the ideal solution. If the borrower has a good credit rating, it is easily possible to take out an instant loan on favorable terms. In advertising, a loan with immediate approval is often recommended as the means of choice, which can be applied for without great effort and does not involve any risks. When taking out loans, you should always keep in mind that this is a financial obligation that you must meet. If you have a regular income and you have good creditworthiness, there is nothing standing in the way of an instantly approved loan. But how does this popular financing work in practice?

At the beginning there is the credit check

At the beginning there is the credit check

Before you apply for an instant loan, you should compare your monthly income and expenses and check what your maximum credit rate can be. It is best to compare your monthly disposable income with your regular expenses. In addition to your salary, income also includes rental income, maintenance or other regular deposits that you receive as a borrower. Then list the expenses. These include rent, ongoing loan and loan installments, insurance premiums, car costs and living expenses. From this comparison, you can see how much leeway you have for your loan installment per month. The financing bank will make the same calculation and also base its conditions on your creditworthiness. You also need to be sure that you have the money to repay your loan reliably over a long period of time.

After comparing the income and expenses, take a look at your Credit Bureau or the entries in the Credit Protection Association (KSV). If there are entries that indicate a poor credit rating, the banks can reject your loan. It is therefore helpful that you know the data stored there before you make your loan request. If your creditworthiness is in order, make a credit comparison in the next step. To do this, use a loan calculator on the Internet.

How to do a loan comparison

How to do a loan comparison

At present (12/2016), interest on loans remains at a low level. Every bank tries to win customers and relies on flexible conditions and low interest rates for the installment loan. If your Credit Bureau (KSV) is in order, the entire spectrum of the best banks is available for your financing. If you check the conditions for your loan, you can use a loan calculator. Here, as the borrower, you enter the desired loan amount and the term. The longer you take the time to repay, the lower the rate on your loan. Pay attention to the purpose of your loan. If you want to use it flexibly, you should not specify any purpose for the financing bank. A classic installment loan is not tied to a purpose, you can use the borrowed money freely. The calculator uses the loan amount and the term to determine all banks from which you can apply for loans with your specified conditions.

Everything at a glance in the online calculator

Everything at a glance in the online calculator

The direct comparison offers you several advantages. If you use an online calculator, you can carry out the comparison flexibly if you have time. You do not have to wait for an appointment at a bank, because you make the financing comparison on your home computer. The online calculator uses your data for the loan to create an overview that lists each bank that finances your loan. The overview shows the amount of the installments in USD that you pay for your loan each month. The best providers identify you with reviews from satisfied customers. In many online computers, good providers are marked with stars so that you can easily recognize them.

Of course, you can also find the interest in the online comparison. Orientate yourself to the effective interest rate, which contains the most important costs for your loan and is a good guide in comparison. Even if interest rates are currently low (12/2016), a small difference makes a significant difference in the repayment. In the case of loans with a large amount, even small deviations in interest rates can be observed.

An important criterion for your decision is the time it takes the bank to process your application. Some installment loans are offered as a loan with immediate approval. The advantages of this option are obvious: You will be informed at short notice whether your instant loan will be approved and you can apply for your cheap online loan of the desired amount directly from the computer. The instant-approval loan is therefore ideal for customers who urgently need money. From the overview of the banks, you can easily see which providers are offering a cheap online loan with immediate approval that fits your desired loan amount and duration.

How to apply for an instant loan

How to apply for an instant loan

In order for you to have the money you need in the account quickly, you should look for loans with an instant commitment and know how this financing works. There is usually a program behind the immediate approval that checks your creditworthiness based on your input. So be careful when specifying your income in USD and with all other required data. The program now determines whether you can pay the installments for your loan in USD. If this is the case, you will receive an immediate confirmation.

At most banks, you have to provide proof of your details. If you provide all the required documents and your stored data in the Credit Bureau or KSV is in order, you can apply for the loan online immediately and trust the low interest rates. After checking your documents, the bank will confirm the conditions and pay the money in USD. Until the final check by the lender, there is still the possibility that your request will be rejected. This means that loans with instant approval are financing with many advantages, such as fast payment and optimal comparability. Nevertheless, even with these loans, the bank will only approve the loan application if it can be sure that you will reliably repay the borrowed money in USD within the agreed term.

Where can you compare online loans?

Where can you compare online loans?

Online loans are offered by conventional banks as well as direct banks on the Internet. Online banks generally offer better credit terms because they do not have to maintain as extensive a branch network as traditional credit institutions and carry out a standardized credit check. Portals, which mostly act as credit intermediaries, make it easier to compare online offers. They are usually equipped with a loan calculator, which the applicant can use to calculate how much credit he can afford. The desired amount, the desired term and, if applicable, the purpose of use must then be entered so that the comparison portal displays the best interest offers.

The loan comparison itself initially remains completely anonymous and is free of charge. Comparison portals are useful because they offer a sufficient overview of the credit market, always offer current offers and immediately submit the loan request to the lender or forward the user to their website. Nevertheless, it is advisable to use several portals to compare as many offers as possible. Sometimes portals offer installment loans with exclusive interest that are not available from the bank or other platforms.

Every cent saved on the loan repayment goes to your wallet. The longer the term of the loan, the lower the monthly charge for the borrower. However, this leads to an overall higher repayment sum. You can also use an internet comparison offer to negotiate wisely with your house bank about a discount. Because in Austria, the interest rates of classic credit institutions and online banks sometimes differ enormously. At many banks, borrowers can choose between fixed or variable interest rates for the entire term.

What should you watch out for when comparing loans?

What should you watch out for when comparing loans?

  • Loan offers without a credit check or against payment of upfront fees are usually dubious.
  • The monthly installment and the total amount of the repayment are to be compared.
  • Only effective interest rates should be compared. The effective interest rate includes all costs and ancillary costs of the loan, including credit residual debt insurance.
  • Interest rates dependent on creditworthiness and independent of creditworthiness are not comparable. If conditions are not tied to creditworthiness, the interest rate applies to all approved applications. Interest rates that depend on the applicant’s creditworthiness are only shown as a representative example in consumer protection in the credit comparison.
  • Only those who have a credit rating that is beyond any doubt will receive the lowest interest. It is therefore necessary that you always obtain an individual loan offer.

What is the procedure for online loans with immediate approval?

What is the procedure for online loans with immediate approval?

Once the suitable loan has been found, the interested party must enter their personal data and information on income and expenses as the basis for the loan request. The processing of the loan application is particularly quick at the banks, which immediately carry out authentication via webcam. For all other applications, the future borrower must use the PostIdent procedure to authenticate himself in an Austrian post office or in a branch of his bank.

In order to receive a loan in Austria, applicants must be of legal age and their main place of residence in Austria. Banks do not require any special collateral for consumer loans, normally the regular monthly income that is to be transferred to the credit institution is sufficient. The employment relationship should be permanent and exist for at least six months. It is conducive to the approval of the loan if the borrower has as little debt as possible and possibly own assets.
Personal data such as name, date of birth, address and amount of income are encrypted and transmitted over the Internet. The identity card or passport with proof of registration serve to legitimize the person. Although it is usually not necessary to disclose the purpose of an online loan, it can be worth it because, for example, there are special interest offers for car loans.

On the basis of the data entered, the bank checks whether the applicant’s creditworthiness is sufficient by asking the KSV or credit agencies such as infoscore. If no negative features such as insolvency proceedings or personal bankruptcy are registered and after deducting all ongoing costs and the credit rate, there is sufficient financial scope to live, the bank gives an immediate commitment for the loan. This takes place within a few minutes. However, it is subject to a final review of all submitted evidence and documents. The bank then sends the loan contract documents to the applicant electronically or by post so that the applicant can accept the non-binding offer.

When will the money be paid out?

When will the money be paid out?

The advantage of an immediate acceptance is that the applicant, if he has received it, can already look forward to the planned purchase or vacation. If the documents, including proof of income and bank statements, have been fully signed by the bank, they will begin to pay the loan amount immediately. The fastest financial institutions transfer the loan amount the same day. A little time should be allowed for the provision of the money. On average, only three to five days pass from the first request for an instant loan to the use of the loan amount.

Summary

An online loan with an instant approval is easy to apply for and will be issued within a few working days. The demand on the Internet makes it possible to realize a wide variety of credit requests from the comfort of your own home. Online comparisons ensure favorable conditions and the instant credit gives the applicant the good feeling that he can quickly implement his project.