An instant loan is a particularly fast form of loan, in which the loan is paid to a German checking account by express transfer and the loan application is checked “immediately”, but usually at least within 24 hours.
An instant loan for the borrower
In this way, the applicant quickly gains certainty as to whether his loan has been approved and whether he will soon be able to count on the loan applied for. In the case of an instant loan without a co-applicant, only the borrower is included in the loan contract, which means that only the borrower’s creditworthiness is included in the contract.
If requested, a co-applicant can be included in the loan. The borrower is then responsible for the resulting debt to the bank. A co-applicant, if one is deployed, must always agree to this on his own will and, as already mentioned, is fully liable for the loan.
Accordingly, both persons are directly liable for the other person, even if the latter is no longer able to make the payments, the remaining debt must be borne in full by the other person. This results in a positive situation for the bank, because loans that are covered by two people with two incomes are much less susceptible and are automatically better secured.
What if there is no co-applicant?
The co-applicant must of course have an independent credit rating, otherwise he is worthless as a co-applicant or guarantor from the bank’s point of view. If there is no person who would like to be included in the loan agreement as a co-applicant, the actual borrower has only the way to an instant loan without a co-applicant.
This can be easily taken up if the borrower has a sufficiently high credit rating and a regular income. It is also crucial which credit line is granted to the borrower. If the amount of the loan is simply too high, the loan may not be issued, even if the borrower has the necessary credit rating for the instant loan without a co-applicant.
The credit line specifies, as the name already aptly says, the financial scope within which a loan for the respective person can operate. People with an impeccable Credit Bureau and a high income enjoy a larger credit line than people with a low income.
This is simply because people with above-average income can of course also pay higher installments, which is why they ultimately receive a higher-value loan. However, loans without a co-applicant are actually only possible if the borrower’s creditworthiness is secured – regardless of whether it is an instant loan or not.