In the banking law sense, collateral is an asset that is pledged as a pledge or assigned as collateral. Thus, when using the specialist terminology of financial institutions, lending to private customers with the exception of real estate loans and car loans is always without collateral.
In contact with their borrowers, banks also refer to positive credit quality features such as a fixed income as collateral. Instant loans are paid out within two banking days. The borrower applies for the loan online, for legal reasons he must also print out the application form and fax it to the selected financial institution. Proof of identity is also required if the applicant is not already known to the bank from a previous or other business relationship. In principle, this is done using the Postident procedure; banks with a banking license may also accept a copy of an ID card.
The waiver of collateral for instant credit
There are practical reasons for financial institutions to issue an instant loan without collateral in the broader sense, such as proof of a regular income. They promise their customers that the application will be processed quickly and that the loan will be paid out immediately, so that due to time constraints, they cannot carefully check the documents that are usually to be submitted.
At the same time, the instant loan without collateral reduces the processing costs of lending, since, in contrast to the evaluation of the credit forms submitted online, it is only possible to check requested documents manually. A limit on the maximum possible loan amount serves to protect the bank against losses, so that small and medium-sized amounts can predominantly be taken up as an instant loan without collateral.
What does the waiver of collateral mean for the instant loan customer?
For an immediate loan without collateral, the customer remains obliged to honestly state the household income. Financial institutions may waive supporting documents, but they are required to query income. For loan seekers with monthly fluctuating income, the instant loan without collateral is ideal because they indicate the average of the past few months as income.
In addition, recipients of income from different sources can indicate their total cash inflow and are therefore more likely to receive a loan than from a lender that only considers the main income. The offers for instant loans without collateral are diverse, so a careful price comparison to find a cheap loan is essential.