Anyone who has taken out a loan more often knows about the amount of paperwork that has to be dealt with. Banks want to know the creditworthiness of their customers and require proof of wages, account statements, proof of valuable property security, employment contracts.
Some customers are stressed because of this and are having trouble getting the documents together. The longer the lender has to wait for his credit documents, the longer the customer waits for his loan. If you want to avoid this flood of documents, you should look for a loan without paperwork.
The loan without paperwork – the prospects
Many customers want a loan without paperwork. The annoying search for the necessary documents is simply annoying for many. If you have no order in your papers then you are looking for and looking. Germany is the country of the bureaucrats and has a form for every application, including a loan application. Banks have a duty of care towards their customers and are legally obliged to inform their customers.
If the interested party has a good credit rating, borrowing is easy and without unnecessary paperwork. The best thing is for the customer to stay with one of the online banks. With a credit comparison, a cheaper provider can be found, the loan application can then be made directly on the comparison page.
Everything is done in a few minutes, all you have to do is fill out a form and enter a few details. If the document is sent to the provider, the customer must sign the credit application sent to him and send the necessary documents to prove his creditworthiness. After being checked by the bank, the loan is approved or rejected.
Everyone has the papers they need ready. Proof of wages from the past three months are required, some also require bank statements, also from the last three months and a copy of the employment contract. As the documents have to be sent by post, the customer can carry out the Postident procedure right there. All ways that are feasible and without much effort. So the customer will get a loan without paperwork.
If there are still too many papers, you can have the loan provided as a overdraft facility. Banks provide their solvent customers with a overdraft facility of up to three monthly salaries. The overdraft facility is a loan without paperwork, all you have to do is ask the bank for an overdraft facility.
The amount of the loan depends on the income of the customer, which can be seen on his account. If he has a good credit rating, a call is often enough and the overdraft facility is ready. This is the real loan without paperwork, because nothing has to be signed and nothing has to be presented.
If there are changes in the economic situation, the overdraft facility can also be reduced again. This often happens without customer influence. As simple as the overdraft facility is, it can become dangerous. It is the most expensive loan there is. Its interest rate level is in the double-digit range, which can easily add up to 15% interest. If the customer exceeds the granted credit line, the bank can add another 5%. This means that the overdraft facility can have an interest rate of no less than 19%. One hardly speaks of usury here.
Banks are very relaxed about the use of overdraft facilities, as long as income flows, nothing will change. The bank creams vigorously and the customer can get more and more into a debt trap. This happens if he does not pay anything into the overdraft facility each month. With this interest rate, the costs add up very quickly.
If the incoming salary no longer covers the overdraft facility and if banks no longer make the transfers because the cover is missing, then the customer should look for a loan. It is then advisable to take out an installment loan. If this situation has been repeated a number of times, the overdraft facility must be removed or at least reduced. Because the time comes when the bank says no to an installment loan.
The framework or on-demand credit
The simple and uncomplicated application is then only reserved for the so-called framework credit. The customer agrees a fixed credit line with his bank, from which the customer can always withdraw money on demand. Usually this is done via the current account. The framework loan has the same requirements as an installment loan. If there was already a overdraft facility on the account, the bank will provide a credit line without a major credit check.
The customer should know that a credit line is the same as the known call credit. Banks like to call this loan an external overdraft facility. In contrast to the overdraft facility, which is based on income, the entire economic situation is targeted with the credit line. The customer is granted a line of credit as a loan without paperwork, similar to the overdraft facility. The customer can then freely decide how much and when. The repayment of the credit line is also left to the customer. However, a minimum rate of 2% of the credit line is recommended as the rate.
The interest rate on the loan for the framework loan is around 9%, slightly higher than for the installment loan. The interest rate is only calculated on the sum that the customer uses. Framework credit as a loan without paperwork is not yet offered by all banks. Customers often receive it when they are customers of the bank. Salary slips are required as credit documents, that’s all. So a loan without paperwork with a very flexible use.
The instant loan
The flood of papers can actually only be contained with proof of creditworthiness. With instant credit, there is no need to search for papers. Since the instant loan is declared as a small loan, it can be decided on the loan without paperwork in a simplified test procedure. The bank only requires current pay slips. Banks check these loans using the Credit Bureau and the score. This query is carried out automatically, so that no papers are required for this either.
The responsible clerk will check the income based on the salary slip whether the information also corresponds to the information in the self-disclosure. Thus, the instant loan is the loan that meets the loan without paperwork.
Spin Lender offers fast loan processing, where customers receive a loan that will be repaid in 30 days. As the first customer, the customer only has to carry out the Postident procedure. First-time customers will receive 500 USD, existing customers will already receive 3,000 USD. The portal even advertises a payment within 30 minutes. However, the loan is not cheap. An effective annual interest rate of 13.9% is charged.