When is an online short-term loan worthwhile?

Financial bottlenecks or urgently needed purchases can be overcome nowadays even without that necessary savings. Taking out a loan can help in such cases. Often, an online short-term loan is already enough to overcome a financial lean period for a short time. When such an online short-term loan is worthwhile and what you should consider, you will learn from us.

What is an online short-term loan?

An online short-term loan is – as the name suggests – a loan that can be taken out online and has only a short term. As a rule, the loan term is 30 or 60 days. The application process can be handled completely online and also the necessary legitimation is usually done via video-ident procedure. This has the advantage that the processing and the approval of the loan can take place within a very short time. Some providers even advertise that you can have the money you need in your account within 24 hours. Due to the short term, the online short-term loan is an ideal interim solution if you need money quickly and can not wait for the next salary receipt.

Which providers allow an online short-term loan?

Classic major banks usually grant loans only from a loan amount of 3.000 €. Small loans are not interesting for the big banks, because the expensive cost structures of these banks make such an offer unprofitable. Here you have in financial bottlenecks only the option of the significantly more expensive overdraft facility to use.

Online short-term loans are therefore only offered by specialized credit providers for mini loans or online banks. The offer ranges from € 50.00 to € 3.00.000,00 €. Here is an overview (no claim to completeness)!) special providers for short-term loans:

Credit expert tip: instead of the special providers, we would advise you to one of the online banks in our loan calculator. You can also z. B. Take out a loan with SWK bank, bank of scotland or sberbank and repay it after any term free of charge. Before taking out a short-term loan, please be sure to compare the interest rates to be paid. In some cases, the interest rates of special providers are significantly higher than the interest rates of an overdraft facility!

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For whom is an online short-term loan suitable?

An online short-term loan is intended for situations in which you need quick financial assistance. For example, if the car or the refrigerator has unexpectedly broken down. For larger purchases, such as a new kitchen or new furniture, you should rather resort to a classic installment loan.

Due to the short term of a short-term loan, you should only use this form of credit if you are sure that you will repay the borrowed amount plus interest at the end of the term. For example, if you are only waiting for the time until the receipt of the next salary. Unlike traditional installment loans, short-term loans do not require monthly repayment installments for repayment. The borrowed loan amount will be repaid in one sum at the end of the term. Some providers also offer the possibility of a 2 installment option, but this is often subject to additional fees. An online short-term loan can also be an interesting option for students or trainees, as they would otherwise not be able to obtain a conventional loan due to their often low income. Nevertheless, they also need in some cases quickly additional money, for example, for the equipment of the first own apartment or the payment of an unexpected bill.

What requirements must be met for an online short-term loan?

The requirements for granting an online short-term loan are similar to those for a conventional installment loan. However, usually lower regular income is required in contrast to applying for a classic installment loan. In any case, the following points must be met if you want to take out an online short-term loan:

  • You are of legal age
  • You have a german bank account
  • You are registered at a residence in germany
  • You have a valid identification document
  • You have a webcam-capable device, such as a laptop, tablet or smartphone, to carry out the online legitimization process.

What is there to consider with an online short-term loan?

Similar to applying for an ordinary installment loan, you should also compare the offers of different providers by means of a loan comparison for an online short-term loan. How to find the cheapest and most suitable loan for yourself. Particularly in the assessed interest and any additional fees, the providers of online short-term loans sometimes differ significantly. In addition, you should make sure that you do not take out any unnecessary additional products, such as insurance or the like, when taking out the loan.

Here's how to take out an online short-term loan

If you want to take out an online short term loan, it's very straightforward to do so. To do this, proceed as follows:

  1. Compare lenders' online short-term loan offers with each other and choose the one that's right for you.
  2. Specify the amount of credit you need and follow the application process. Make sure you only take out as much as you need in the process.
  3. Enter all required data in the application section.
  4. Carry out the legally required legitimation via video ident procedure and confirm your identity.

Thanks to the automated loan processing for online short-term loans, you receive an immediate approval or rejection for your loan directly. Normally, you will receive the loan amount disbursed to your account within a few days.

Conclusion on the online short-term loan

The online short-term loan is particularly suitable for bridging short-term financial bottlenecks. Since you must repay the borrowed amount in full within a very short time, you should also take out such a loan only if the repayment on the specified date is also secured, for example, by the next salary receipt or the payment of another savings balance. In these cases, the online short-term loan is an optimal choice.