Consumers who need a loan these days want a quick commitment and, in the best case, an immediate payment. Before a payout is made, however, most banks carefully check the borrower’s creditworthiness.
An immediate approval is therefore often only possible with online and direct banks. Branch banks usually do not have a partially automated online check procedure and generally take longer to do so.
Conventional banks still rely on extensive advice on a loan
As a bank customer requesting a loan from a conventional bank, you cannot usually expect an immediate approval. This is due to the fact that an appointment must be made with the responsible loan officer at these banks and savings banks. It can take several days for a consultation to take place.
The required credit check and Credit Bureau information are usually obtained when the bank customer shows up for a consultation. Only now can the customer expect a preliminary commitment. Before making a commitment, the applicant’s credit documents may have to be checked.
Even with direct banks, an immediate approval is only a preliminary decision
A reduced, partially automated online test procedure is used for online and direct banks. In this “semi-automatic credit check”, the borrower makes various information about himself in an online application. This usually includes the applicant’s name, date of birth and place of residence. Furthermore, information on monthly income as well as debt and current expenses must be provided. Based on this information and data, Credit Bureau information and a credit check are carried out. If there is an immediate approval for a loan, it is still only a positive decision that is preliminary. A final credit decision is only made at online and direct banks when the required loan documents are available in the required form.
The online credit can be applied for at any time of the day, 7 days a week
Although the instant approval for a loan is only provisional for online and direct banks, these institutions tend to work more effectively and faster than conventional branch banks. This is due to the fact that a loan can be applied for seven days a week at any time of the day or night. For an actual payment within hours, we recommend an online application before 2 pm on a working day – depending on the provider, this is often offered without or only at low additional costs, as in the comparison of CrediFortune Lending (table “Mini Loans with Immediate Approval “) can be seen in detail.
The required credit documents are either scanned and sent to the direct bank as a file or sent using the post-identification procedure. In the microcredit area, it is sometimes enough even for reputable companies to send the last payslip or proof of salary as a smartphone photo.
Since the majority of conventional banks and savings banks are now also active on the Internet, these institutes could also offer this type of application, but in practice there is still room for improvement, which of course is also due to the legal framework for consumer protection .
Potential: Banks and savings banks could act faster when dealing with customers
Even conventional banks could easily be offered a loan with almost immediate approval within the framework of the legal guidelines. At many banks and savings banks, an appointment for credit counseling can now be made online. Often, these banks also offer special online loan offers in parallel with the installment loans in the branch. As with the online and direct banks, the loan officers of these banks can also offer the consultation by phone (which is also being done more and more). The immediate approval for a bank loan is only realistic if it is a regular customer of the bank with a good credit rating, since all credit-relevant data is already available on the computer.