A certain period of time elapses between the application for a loan and the payment of money. Even the promotion of a loan in 5 minutes mainly refers to the time until the loan decision, while the payment for instant loans is mostly made within two bank working days. A payment made directly to the lender is only possible in a few cases.
The actual loan receipt within 5 minutes
The pawnbroker is the only one who can actually pay off a loan in 5 minutes. However, this only applies if he can estimate the value of the object to be pledged without further examination. In addition, the usual loan payment at the cash register in the pawnshop is due to the low loan amounts. Customers also often associate the expectation of a direct cash payment with a modern credit shop. In fact, when borrowing in one, the payment is usually made by bank transfer.
The credit decision can be made in the credit shop in just over 5 minutes if all documents are available and the desired amount is so low that the on-site employee can make the decision on his own. Retailers also decide within a few minutes whether to accept payment in installments. Furthermore, billing agencies acting on a medical or dental order often offer payment of the bill in six installments, for which it is sufficient to send the prepared form. The installment payment for a surprisingly high energy bill can also be taken out – according to the consumer – in 5 minutes, since the call center employee no longer needs to make the decision. Legally correct in the last two cases it is a payment agreement and not an actual loan.
The instant loan in 5 minutes
With an online application, the loan can be decided in 5 minutes. The commitment made can be binding or provisional. Banks are most likely to withdraw provisional loan commitments because of a difference in the crediting of income components. This can be avoided if consumers, before sending the instant loan application, make sure that the financial institution takes additional income into account in the household bill. The fact that the payment takes longer than 5 minutes is not only due to the transfer time, but also to the regulations on identity control.
The sending of the Postident procedure means that the processing time between receipt of the loan application and cash payment is usually two banking days. Any financial institution with existing customers can accelerate it, since in this case the identity check has already been carried out. Even banks with a Luxembourg license are not dependent on the Postident procedure, because they can recognize a photocopy of ID card as proof of identity, even if it is faxed to them. If the applicant, as an existing customer or a customer of a bank licensed in the Grand Duchy, is willing to pay the cost of a Prior1 transfer, the bank cannot transfer the loan in 5 minutes, but in less than an hour.
In most cases, it is sufficient to decide for or against a planned acquisition to receive a binding loan approval within 5 minutes, while there is more time available for actually receiving the money. Since instant loans are an additional benefit compared to loans with a normal processing time, borrowers accept interest premiums. So that these are not too high, an online price comparison for the desired loan in 5 minutes is essential. The relevant price characteristic is the annual percentage rate.