Month: December 2019

Anyone looking for an instant loan from a private person will quickly find a real instant loan that can only be found at banks. A friend can step in privately with an instant loan, it doesn’t work so quickly via a portal. You can find out more about instant loans and the “acceleration factors” of a personal loan in the article.

Instant credit from private – the essence of instant credit

An instant private loan can be found in advertising. All major portals for personal loans advertise with the catchphrase “instant loan”. After clicking on the credit description, the provider statements are already extremely vague. Instead of admitting that there is no instant credit from the private sector, the portals are evading. The term can only be found in the landing zone. At the latest in the bank there is only talk of credit. The reason for this is simple:

A real instant loan, usually a small loan, is decided directly by a lender under simplified examination requirements. This lender reviews the application and makes a decision. The loan is then paid out on the same booking day or on the following next booking day. In the case of a real instant loan, there are two to three working days between receipt of the application, loan processing and payment.

Instant credit from private donors – the normal process

With all private loan offers, outside of the circle of friends, many individual approvals are necessary. The loan is only payable if the number of bids is sufficient. A personal loan is often composed of 20 or more loan offers. Often, even the final interest rate is not known by the end of the bidding process. With a view to an optimal interest rate, many lenders “gamble”. It is the last few seconds that make a final decision about the interest rate.

With the best creditworthiness and credit protection, the interest is reduced if the number of bids exceeds the credit requirement. It is in the interest of the borrower to get as many bids as possible. So the borrowing rate falls. An average credit approval, with normal creditworthiness, takes about 20 days.

The processing time for instant credit from private, compared to a “real instant loan”, is already tenfold. Now the money still has to be collected by investors. The loan can only be paid out once all the funds have reached the paying bank.

Make a leg of personal credit

Additional donations can be given to the loan from private donors in a number of ways. First of all, all certificate offers should be used. Banners and a good credit description ensure investor interest. Speed ​​is a question of money.

A small loan amount, additionally secured, for example, by the vehicle, can be financed quickly. The interest rate offered by the borrower can also ensure quick bids. Nevertheless, the following applies: An instant loan from a private person is, in rare exceptions, almost as fast as the instant loan from an online bank.

Despite falling unemployment figures, there are a huge number of people in Germany who are dependent on state subsidies or even full care and are therefore known with the infamous name “Social Welfare”.

Since Credit bureau keeps the relevant data for a period of three calendar years even after this condition has ended, the number of people affected continues to rise. Nevertheless, there are also legal opportunities to obtain an instant loan despite negative Credit bureau and Social Welfare.

Private loans:

Unfortunately there are many black sheep in the area of ​​private moneylenders. Therefore, companies that advertise in the newspaper should be advised against, as unpleasant surprises can occur. However, most people with an intact family and an intact social life can also borrow money with friends and acquaintances.

Although this costs overcoming and is certainly associated with the fact that you actually have to answer unpleasant questions, it is the quickest and usually cheapest way to get a smaller loan immediately.

Guarantor:

An instant loan despite negative Credit bureau and Social Welfare can be realized at a bank through a guarantor. The guarantor guarantees with his or her perfect creditworthiness for the proper repayment of the loan, so that no questions are asked about the actual borrower.

Such guarantors are also preferred among friends and acquaintances; it is strongly advised against people who offer services on the Internet that have to do with providing guarantees for strangers. 

Valuables:

Even people who purchase Social Welfare often have valuables. These can be deposited with a pawnbroker as security for the value of the items, whereupon an immediate loan is granted to a certain extent despite negative Credit bureau and Social Welfare.

Such pawnbrokers are often of a governmental nature, so that a real value is estimated and, less usual loan interest, is paid out in cash. If the deposit is not released within a certain period of time, it expires and is put up for sale or auctioned by the pawnbroker.

The economy is running, companies are investing. But earnings in the corporate banking business of banks and savings banks are stagnating. The margin decreases as the credit volume increases.

Studies and research on trends and developments in corporate banking, including corporate and investment banking.

At almost 1.1 trillion dollars, the credit volume reached a new record in the first half of 2017. While savings banks and cooperative banks have been able to expand their business in the past five years, GoodVines Bank has lost market share.

Decline in earnings and profitability

The management consultancy CoolFund & Company publishes an analysis of the corporate banking business of German banks every six months. The analysis covers around half of the total assets of the 100 largest banks operating in Germany and focuses on financial institutions with a focus on corporate banking and corresponding segment reporting.

The CoolFund Corporate Banking Index even declined slightly in both dimensions, earnings and profitability, compared to the previous year.

The high level of competition in a historically low interest rate environment prevents banks from benefiting from growing corporate credit demand.

The return on equity before tax (RoE) continues to crumble. This key figure has dropped significantly since 2012 and is now 12 percent. The banks still earn their capital costs in the corporate customer business, but they are far from the previously accustomed returns of 20 percent. Income and profits stagnate in the German corporate banking market

The credit margin in particular is suffering from fierce competition and the sometimes very ambitious expansion plans of major international banks in the German market. At 1.3 percent, the margin is now back at the level of the crisis year of 2008. At the same time, the share of low-margin new business in the loan portfolio has increased significantly.

Credit margin declines to 1.3 percent, close to a ten-year low. However, there are differences between the institutes. However, some institutes are able to counteract this. They focus on profitable customer groups and increase cross-selling. On a broad front, such successes in commission business are still the exception.

Historically low loan loss provisions

In view of the good economy, credit risk provisions at credit institutions are currently below the historical average. Compared to the previous year, this dropped significantly again in the first half of 2017. According to the authors, however, it is only a matter of time before the credit cycle changes. Higher loan loss provisions would then further burden the tense earnings situation.

Saving costs and customer selection

For this reason, the institutes started saving programs some time ago, resulting in a stabilized administrative burden. Many banks continue to work on reducing costs and strengthening customer selection. However, it is still often difficult to withdraw from entire industries, regions or product groups.

Recently, we have seen that several lenders have changed their fast loans. Lendscan and the Loan Stared, for example, removed their shortest term of 1 month, which means that you can only put up your loan for 61 days or three months with them. In addition, Lendscan recently began offering online credit in addition to its sms loans, just as Letlend Credit does. Since then, VIA SMS Group (which is behind the sms mortgage company ViaKredit) has also launched a new brand under the name Viakredit which only offers online credit, one that has become more common since last fall.

Are credit companies preparing for the fall?

There are, of course, several reasons why credit companies have started to change their products. One reason is that online credits can provide better returns than sms loans. This is because they can be paid off for a very long time and the borrower can use the credit again. However, for you as a borrower, it is a cheap alternative to sms loans if you repay what you have borrowed within a short period of time, but if you pay off the repayment period it will be very expensive instead.

Another reason may be that fast-mortgage companies are well aware that the industry will probably be regulated a little further in the future. Yes, there is a government inquiry into this. If the investigation introduces a relatively low interest rate ceiling, it will not be possible to lend type USD 1000 for 30 days and make a sufficiently good profit on it, but with longer maturities and slightly higher amounts, it works. Then you can lend USD 3000 or 5000 and upwards at a lower interest rate, just as some lenders already do, such as Money2You and LetMoney. And in this situation, it will certainly work well to offer online credits as well, although interest rates may need to be lowered further.

SMS loans are adjusted according to Google’s guidelines

There is also a third reason (probably the biggest reason) why credit card companies are starting to change their maturities are Google’s new guidelines for sms. Because it is no longer allowed to advertise loans that have a shorter term than 61 days at Google.

We at Snapmoney Finance believe that this is only positive because we would like to see the maturities become longer so that people can pay back their sms on time. Now only interest rates need to be lowered to a decent level.

Goodlink Finance’s new flexible loan – bad or good?

Goodlink Finances has also changed his product. Instead of offering sms loans with a maximum maturity of 30 days (with the possibility of extension), they have made their loan more flexible. Now you can pay off the loan for a significantly longer time, only you pay at least 3% of the loan each month. It is both good and bad:

• The good thing is that you do not need to apply for an extension after 1 month if you know from the beginning that you will not repay it after such a short time.
• What is bad is the ridiculously low repayment requirement of 3%, because if you pay off on a fast loan at such a slow rate it will be horribly expensive. Goodlink Finances himself shows on his website that if you borrow USD 5,000 and repay the loan for as long as possible, the total amount will be USD 32,992! It’s absurd. But sure, if you pay back USD 5000 within a month, it will cost you no more than USD 0 if you are a new customer, and only USD 750 if you pay after 2 months. It’s not so bad after all.

Now it remains to be seen if Goodlink Finances will also offer a minimum maturity of 61 days in the near future. And if a cost ceiling is guaranteed, they will be able to change their low amortization requirement.