If you need to be particularly quick when lending, then you should apply for a so-called “instant payday loan”.

Instant payday loans are predestined to cover a time-critical need for money, which would not allow the processing time of a conventional payday loan. Numerous credit intermediaries advertise on the Internet with the award of instant or express payday loans.

Since this type of payday loan has to be very fast, instant payday loans with a view to the application process work differently from conventional payday loans.

The credit intermediaries and the affiliated lenders reduce the credit check to a minimum and in some cases do not even require the submission of proof of income. But how can that work? Are such credit promises still serious?


The instant payday loan at a glance

There can be many reasons why a short-term need for money arises. If, for example, the car, which is absolutely necessary for the journey to work, suffers an engine failure overnight, there is an urgent need for money to repair it.

In this situation, if there are neither financial reserves nor a disposition framework granted to the house bank – then a payday loan must be forthcoming. An instant payday loan with instant decision (hence the name) has been increasingly offered by online credit intermediaries for several years.

The industry has recognized that there was a kind of market niche in the area of ​​short-term cash requirements, after all, traditional branch banks usually require up to a week’s processing time to apply for and pay out a small payday loan.

In the case of an instant payday loan, payday loan seekers only have to fill out an online form with all personal and credit-related data on the internet and their request will be checked and processed.

The application process is very manageable, so that in some cases no examination is carried out and no submission of proof of income is required. Of course, customers only receive credit balances up to a certain limit, for example in the amount of 5,000 euros. In addition, the payday loan conditions are much higher than with a conventional online payday loan. In many cases, however, the instant payday loan offers without proof of income for payday loan seekers are very interesting, especially if you are financially, for example, due to unemployment, already in a difficult situation.


Why the proof of income is indispensable for the credit decision?

Since guaranteeing a proper repayment for the lender is the alpha and omega of lending, the question naturally arises as to how instant payday loans without proof of income should work at all?

For decades, it has been common practice in the German banking sector for a comprehensive credit assessment to be carried out before the payday loan is granted.

Here, above all, the borrower’s ability to provide debt capital plays a decisive role. An easy repayment must be measured in terms of monthly income and expenditure, and these are credited to a lender of course only in the form of proof of income attests.

By looking at the proof of income, the lender knows that the amount of the payday loan and the amount of the monthly installment are in line with the monthly income.

This is ultimately not only important for the bank’s collateral, but also protects the borrower. Although it is now known that small payday loans are sometimes awarded to the unemployed or students, but it is usually mandatory that there is a solvent co-applicant or a direct guarantor.

Without proof of income or substitute collateral (for example, the cession of assets from a life insurance), it is incomprehensible why a bank should agree to lending.

Online offers, which go in the direction of “instant payday loan without proof of income”, are of course auspicious, but always have a doubtful seriousness.

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