39eu.com Uncategorized From loan application to disbursement – how it works

From loan application to disbursement – how it works

You want to apply for a loan, but you are not sure what exactly is coming your way? How are you many citizens. If you want to apply, this decision is easy. Credit advertising, numerous guides and loan comparisons lead to the desired provider.

Everyone decides their own priorities. Many opt for installment loan from a low-interest direct bank from the credit comparison. Others trust their local bank. People with a weaker credit rating see their loan credit balance privately, via intermediaries or without credit bureau from abroad. – But what happens then?

Under the heading – from the loan application to the disbursement – we answer in detail typical questions. A checklist, examples and videos illustrate the process.

Prepare loan application properly – usual documents

Prepare loan application properly - usual documents

A well prepared application will not take you five minutes online. So that everything goes smoothly and fast, it would be advisable to prepare some documents. Our checklist helps to forget nothing essential.

Checklist for application preparation


Income notifications of the last three months still open / done
Proof of any additional income or collateral still open / done


Co-contract or bank statement of the last rental payment still open / done
List ongoing payment obligations. (Insurance, membership fees, savings contracts, pension plans, … ..) still open / done



valid identity card or passport and registration certificate still open / done
As a precaution, the bank statements of the last three months. (Are required by some providers now). still open / done

Thus prepared, the loan application can be made on any application path. – In the store as well as by mail or exclusively online. Special cases would be credit requests without credit bureau and mini loan. More on that later.

Credit comparison – request credit as often as you like?

Credit comparison - request credit as often as you like?

The credit comparison often lists several interesting-sounding loan offers. The question, “I get credit from this or that provider – or not,” many credit seekers ask themselves. To try it, credit comparison calculators literally load. To make a decision, several non-binding loan requests are made to banks.

It is expected that the preliminary non-binding loan commitment will follow from all credit providers. At the same time, the non-binding response provides very compressed additional information for detailed credit comparison. Comparable loan terms, which are often more valuable than low interest rates, are included in the prepared binding loan application.

Including this information in the final, own application decision can save you money and prevent disappointment. By mail or directly on the screen also appears the request to make the loan application binding. To perform this step should be left to the actual preferred offer.

Credit tip – only apply for a loan Knowledge should be available to prospective borrowers that the non-binding credit check alone, in principle, can have no negative consequences. It is completely non-binding for both sides. Only the positive budget statement as well as key data for the application are checked.

Consequences have to submit credit requests legally binding. The personal credit rating, although the credit acceptance could be denied, suffers extremely under multiple binding credit attempts in a short time.

Typical key data of a credit check:

  • Age of the applicant
  • Minimum income for lending
  • Clean credit bureau yes or no (own information)
  • Permanent employment outside the probationary period
  • Possibly existing credit obligations
  • Readiness for the credit bureau clause
  • Clean credit bureau yes or no (own information)
  • Special contract terms and application requirements
  • Details of the audit of the budget surplus

Make a loan application – how fast and secure?

Make a loan application - how fast and secure?

Immediately making a legally binding loan application can be very detrimental. Mandatory credit requests are equally binding on credit institutions if no special agreement has been reached. Banks leave their “footprints” on binding credit inquiries in the credit bureau statement. The “footprint” degrades the credit rating for future credit attempts. In principle, that would not matter if guaranteed guaranteed each requested loan.

No one can safely exclude a residual risk of credit rejection. Every recognizable credit rejection reduces the personal credit rating on a large scale. Credit-neutral acts because the credit bureau receives no recognizable entries for other banks, the credit check as a condition request. Nationwide, the credit check, based on the credit check by condition request, offers credit institutions listed in credit comparisons.

Credit Tips Prefer Credit Comparisons Making a loan application online using good credit comparison calculators does not just have interest advantages.

Another advantage of this application path is the commitment of the credit institutions to submit only one condition inquiry to the credit bureau.

Different application paths – branch, online or by post

Different application paths - branch, online or by post

Each credit institution determines for itself which ways are to be taken to make a loan application. Most borrowers have three options. The most common offer is divided into two parts. Many chain stores allow application in a branch or alternatively the online application. Borrowers who are allowed to vote should preferably opt for the application submitted online.

Online banks often offer the same credit cheaper and even better conditions. Additional benefits can be found in the application path for loan comparisons. Operators of credit comparisons often negotiate special conditions for “their” applicants with credit institutions. (Additional interest and condition benefits, exclusive over the credit comparison).

Fast Credit Procedure – Benefits of Branch Credit?

Credit over the local branch was considered for a long time, as the fastest way to borrowed money. Until a few years ago, advertising promises for fast online loans were real “electronic paper tigers”. As a deadly bottleneck, the ID check was a real challenge for fast online procedures and quick payouts.

All the benefits of faster ID checking, by visiting a branch, have virtually vanished. Meanwhile Web-ID (Videoident) counts as an optional standard of most online represented banks. Performing an ID check online is done in just a few minutes, without having to leave the house.

Today, it is only faster if the online offer is (very rarely) coupled with the traditional Post-ID.

ID check compliant with the Money Laundering Act

Most borrowers make their decision on whom to apply for a loan after the expected time to loan payment. The most important factor in how fast a credit institution can start credit checking is the ID procedure. It serves to avoid abuse by unauthorized application on behalf of third parties.

Three procedures for identity verification are permitted by Dufol (banking supervision):

  • ID check at the counter in the store (classic ID check)
  • ID check by Post (known as Post-Ident)
  • ID check by Web-ID (better known as Video-Ident)

In all three cases, the identity is checked primarily via the identity card of the applicant. Alternatively, the passport would be allowed along with the registration certificate. There always has to be a direct connection between the real person, the ID card and the loan application.

Changes by the law against money laundering

Unlike in the past, it is no longer sufficient to be noted in the store as “personally known”. Even if the clerk were the neighbor of the claimant, he would need to get the identity card. Usually, the document is copied and attached to the application.

Other alternatives that were previously possible – the ID check by a notary, a consulate or a foreign bank, are considered uncertain. As far as is known, only one provider is active in Germany who does not stringently comply with the requirements.

ID check in the store – process

The usual requirements apply to ID checks in the branch. The identity card must always be presented. In the German identity card the name and the registered address are noted. Alternatively, the passport may be presented in conjunction with the official registration certificate. (Mostly with credit from Germany for EU citizens).

Credit applications of natural persons are to be made in person. The pre-filled loan application does not necessarily have to be available at the branch. He will be completed in one operation on site. The identity of the applicant can thus be clearly assigned to the application.

The ID check at the branch office does not lead to any time penalty for the application process. The credit check should begin immediately by the loan officer.

ID check at the post office – expiration

The use of the Post-ID for legally binding application is only possible in the Federal territory. Entitled to verify the identity would be any branch of the post office – regardless of the applicant’s place of residence. In the classical procedure, the applicant must personally submit his loan application to the post office.

You must bring with you the valid identity card or passport in combination with the registration certificate. In addition, the loan application and possibly required evidence. You also have to fill out the application form via Post-ID. (In most cases, the pre-filled form is already enclosed with the loan application).

After checking the identity of the loan application goes by letter to the bank. The loan application is considered legally binding from this moment on. The disadvantage is only that the letter to the bank can be 1-3 business days, abroad even longer, by mail. The credit institution must wait with the credit check until the documents have arrived.


Postident is also being offered as an online version since about 2015. It may be that a credit institution redirects either to ID checking for web ID or for identity verification via online post ID. The online proof of identity method is almost identical in both cases.

Credit tip for the postal ID Post-ID is usually offered free of charge because the costs are borne by the bank. Whether actually “nothing” is to be paid for the official loan application at the counter, each bank decides not the applicant.

For example, in the case of a loan without credit bureau and without an intermediary, the applicant pays the fees himself directly to the post office.

ID check via videoident – expiry

Web-ID is a provider from Germany who has the official permission to carry out ID checks online. The technical requirements for using the method are met by every smartphone, tablet and most other computers. Necessary are a camera for image transmission in real time as well as microphone and loudspeaker or headset.

Also necessary is an account with Skype for video telephony. The documents of the online ID check correspond to the loan application via Post-ID. – Identity card or passport with registration certificate, as well as all credit documents and supporting documents. The ID check is triggered by the lender by e-mail.

Within about 30 minutes, Web-ID will call via Skype. The case officer checks the identity and the personal application and the completeness of the evidence while the camera is running. As a rule, after a successful ID check, he asks to upload the proofs by scan.

During the ID check the camera is running. It records the examination in subareas. All collected data is transmitted in real time to the bank. The credit check can begin immediately. All costs for web ID are borne by the bank.

Credit tip – Credit by mail disappears from the market The pure application route by post, written credit inquiry by post, then written application by Post-ID, has almost completely disappeared from the market.

What do credit institutions ask in the application?

What do credit institutions ask in the application?

What exactly credit institutions request in their loan application, may decide according to German contract law each credit institution itself. Most credit providers limit themselves to essential data and usually very similar questions.

A short, as self-explanatory application is one of the standards in the modern lending business. Online applicants should not need more than five minutes for their regular loan application.

Typical details in the loan application:

  • name and first name
  • Previously run names
  • home address
  • Birthday and place of birth
  • Contact details, such as telephone number, e-mail, Skype
  • Marital status (single, married, FeTarated, divorced, widowed)
  • Number of children in the household (possibly FeTarated after minor or adult)
  • Housing divided into property or rent
  • Housing costs (cold rent and utilities, such as heating costs, electricity, water, insurance)
  • Employment relationship (unlimited, temporary, probationary period)
  • Income (main earnings)
  • Extra income (400 Euro job, rental income, etc.)
  • Regular payment obligations (existing loans, savings contracts, membership fees)
  • Negative credit bureau yes or no

Which proofs are to be submitted?

Which proofs are to be submitted?

Loans may only be granted to commercial credit providers if lending is considered “safe”. A considerable simplification of the procedure arose with the introduction of scoring for credit check. Outside of the “special loans”, the credit bureau score allows to dispense with receipts as far as possible.

The standard for most installment loans is the restriction to a copy of the proof of income. Payroll usually gives you all the important information. Credit providers who want to offer as low-interest as possible, also exclude liquidity risks by looking at the bank statements.

To be submitted would be up to three months retrospectively photocopies of account statements of the salary account.

Special cases – credit for self-employed

It is not equally easy for every prospective loan applicant to provide proof of their income through payroll. Since the turn of the millennium, the number of self-employed and freelancers in Germany has roughly doubled.

In 2016, about 1.34 million people earned their income on an independent basis. (Source: Statista). Solvent self-employed want to continue to provide the banking industry, despite legal restrictions, with credit.

The income tax returns of the last three years can serve as income proof for the application of private installment credit despite independence. Another alternative, without having to submit half the bookkeeping, would be credit offers without proof of income.

Loan without proof of income – Self-employed loan

The loan portal trucredit arranges credit from private to private as well as to tradesmen. Of course, every borrower has to earn income, otherwise he would not be able to repay his loan. But trucredit still refrains from binding evidence.

Creditend also offers private individuals access to the loan. But 1,000 euros proof of income must be provided. It would be possible to prove, for example, commission statements or other meaningful documents and account statements.

With credit without proof of income also advertise some intermediaries. Lending in this case is made possible by a co-applicant. The co-applicant would have to submit his proof of income (payroll) for credit evaluation.

Credit advice for the self-employed In the first years of self-employment, it is particularly difficult to provide proof of income. Credit with the BWA is basically possible, but difficult.

A simple expression from the cheap microenterprise software is usually not enough.

Real higher credit opportunities exist if the documents have been specially prepared by the tax consultant or the management consultant for the bank appointment.

Credit without proof of income – private persons

Providers for credit cards do not always take it exactly with the proof of income. Especially if only a smaller availability frame is available on the card. Often enough, the clean credit bureau, a decent score and the self-phrased indication of how high the monthly income is.

Another alternative would be the shopping loan. Department store credit allows to pay off purchases in installments. For smaller sums or a good customer history, some providers of department store credit waive the proof of income. For credit application, only a photocopy of the credit card or bank card is submitted.

Loan application until loan payment – how fast is it?

Loan application until loan payment - how fast is it?

Anyone who applies for a loan pursues an individual goal with the borrowed money. Time will allow potential creditors to decide if and with whom to apply for installment credit. After the application, most of the time factor plays an important role. The question, “how fast is the loan applied for and decided on,” everyone asks.

Credit decision:

In terms of processing times, a lot has changed in the last few years. Computer programs decide on the granting of credit across the board. Once the data is in the system, the programs automatically control the process. Between a legally binding loan application and a credit decision are usually a maximum of 24 hours.

Application until payment:

Some banks even promise to complete the entire process from legally binding application to loan disbursement within 48 hours.

Three to seven days are common for most regular credit providers. Standard for regular installment credit is the loan payment on the following accounting day after the final loan approval.

Deciding on the payout speed can be the chosen credit model, the provider, the loan amount and optionally bookable express options.

Overview of popular loan offers:

credit model From application to payment
Short-term loan with express option 30 minutes to 24 hours
Short-term credit without express 3 days to 15 days
Regular frame loan Payout in real time
Regular installment loan 48 hours to 7 days
credit without 5 to 10 working days
Regular small loan 2 days to 5 days
Credit from private No reliable time possible

Loan payment – when does the loan arrive?

Realizing when a loan will be disbursed does not provide a safe date for the availability of the money. Waiting for urgent payment obligations, can burn every minute under the nails.

A look into the net does not bode well. If searching through Google determines the availability of the money, the anticipation often vanishes. Credit without credit bureau provides a nice extreme example. It can be downright frightening, authentic entries discover.

Long booking routes – extreme example from forums

Borrowers waited for up to one month on their already disbursed loan, according to the Liechtenstein bank. The date of such horror news is older. FeTa was introduced so that nobody has to wait long for his money. Within Germany, a disbursed loan is available in the account within 24 hours. If the money comes from the EU or Liechtenstein, it will take at most three days.

Booking speed with FeTa – example of everyday experiences

A real positive example comes from the everyday loan business in Germany. If a savings bank loan is instructed to pay by 2 pm, the money will appear on the same day in the savings bank giro account. (Nationwide). If the recipient’s account is with a bank, it works in most cases on the same day. At the latest, the money would be available on the next working day before 12 o’clock.

Pay back installment credit – Advantages of possible special conditions

Pay back installment credit - Advantages of possible special conditions

After the loan application and payment begins the “unpleasant” repayment. An adjusted duration keeps the monthly burden within reasonable limits. Installment payments over or under demand, on average income, the household budget is not. – But the income is not always the same.

Free special repayment in any amount:

Special rates for installment loans help the household budget to respond adequately to income fluctuations. Nobody would like to repay their loan for an endless period of time, because compound interest increases the financing costs with increasing maturity. Free special repayment in any amount allows, with additional financial margins, faster repayments and savings on interest.

Number Pause:

During the holiday season, the costs increase. At the same time, temporary financial scope for the household budget is reduced. With the appropriate special conditions, the short-term additional burden does not change into expensive dispatching. Some credit providers allow the installment loan to pause once a year.

Without consumption waiver or Dispo the “small bottleneck” can be bridged by the payment break as needed. Of course, there is no obligation to accept the payment break.

Credit tip – pay attention to special conditions Staying flexible and able to act flexibly often proves to be an advantage over the cheapest interest rate offer without special conditions.

Installment loan is repaid over a longer period. Positive, as well as negative, income fluctuations are highly probable in the repayment period.

Special rates for installment loans facilitate repayment, prevent expensive short-term loans and keep installment loans flexible.

Apply for special funding – finance outside regular loans

Apply for special funding - finance outside regular loans

Not everyone who hopes for a loan from a bank or savings bank, can count on a problem-free loan approval. As a result of the problems on the international financial market (euro crisis, banking crisis) the demands on borrowers increased. Not infrequently, even credit seekers have to accept a rejection that can actually afford their credit.

Enforce regular credit:

Optionally, a credit application with a guarantor or a co-applicant would be possible if creditworthiness is lower. But it is not pleasant to bother third parties with their own problems. A valuable security of security, which is accepted by credit institutes, possesses likewise not each prospective customer.

Special Financing:

Offers for special financing, via intermediaries, from private or a few special banks are moving into the focus of the application.

Applying for a low-credit special loan differs from regular credit in many details. It starts with other terminology, leads to other application paths and relativizes the secure planning of installment credit.

Credit application and credit inquiry – are there differences?

Other terms would be given, for example, already in the application. In many cases, providers refer to their loan request for special credit as a “loan request”.

At first glance, the phrase may sound similar. The difference is that a loan request, as made via a free regular credit comparison, is non-binding. A credit application is binding.

Without the passage in the loan application “credit bureau neutral or only condition request” it is automatically a binding loan application. If the credit bureau is requested binding, it must work with the credit, otherwise the credit rating deteriorates unnecessarily.

Credit tip – Pay attention to the small print Provide credit seekers only a loan application, if the provider provides binding, only a credit bureau-neutral condition request to ask the credit bureau.

For example, Creditend gives creditors a binding mandate to ask credit ratings that the request will not adversely affect credit quality.

Private credit – how does the application work?

Private credit - how does the application work?

The portals Creditend and trucredit are known as trusted intermediaries for private and private loans. On both portals, the loan application is made as a credit application. In large part, the online form does not differ from the “ordinary” loan application. But in 5 minutes, credit can not be applied for privately.

Apply for a loan from your private careless:

A special feature of the loan application is the possibility for detailed credit description. For investors, the description provides an insight into decisive backgrounds. Lenders, unlike banks, decide on their investment at two levels. An objective impression of whether a loan can be secured, provide the free certificates. The human component of the credit decision addresses the credit description.

What to look for?

Honesty is important without exaggeration. In addition, a well thought-out, traceable repayment concept in the credit description supports investors’ confidence-building.

How fast is credit approved and paid by the private sector?

Nobody can seriously predict how fast it will be possible to finance the project privately. It can take a few hours, days or weeks to convince enough investors. Approved credit will be paid in one sum within one booking day.

Loan application with credit intermediaries

Loan application with credit intermediaries

For difficult financing requirements, prospective clients often turn to credit intermediaries. The online application looks like a loan request to a bank. Even the automatic credit check is partly offered. But, credit intermediaries do not lend themselves, but help “only” to find the appropriate loan from a foreign lender. For this you receive a success commission. (Do not pay in advance).

Planning security – loan commitment from the intermediary

Real planning certainty, the high likelihood of an upcoming credit approval, does not open the agent’s credit check. Much more skepticism, as compared to regular credit providers is also necessary.

In many cases, mediators try to profit from hopeless credit requests, additional offers (insurance, investments, etc.). The champagne cork is only allowed to pop when the expected credit actually arrives on the account.

Tricky topic – Privacy on the net

Tricky topic - Privacy on the net

No one can guarantee complete security of the data in the network, as the case Snoden unfortunately showed. Credit comparisons and reputable credit institutions respond to the problem in different ways. It is easy to compare credit without disclosing personal information. For credit inquiry, when it is no longer possible to do without personal data, established credit comparisons pass on to the pages of credit providers.

Data security – loan application directly to the bank

Credit institutions are working hard to keep improving data security. Even the self-protection, so as not to fall for identity theft, justifies the high effort. At the bank, personal information is stored as securely as technically possible.

Data security – loan application via intermediary

A gray area arises when intermediaries accept the loan application. Smaller intermediaries can often simply not afford to ensure the optimal protection of the data. Added to this are dubious working mediators.

Data can be an additional source of revenue for these marginalized intermediaries. – “What should happen, I am broke”, can lead to a nasty awakening. How valuable the protection of personal data can be, is particularly evident in negative credit bureau.

Sold records, probably even with the consent of the applicant (data clause not read), are a lucrative business.

Credit tip – pay attention to data security Not accepting the data agreement of an unknown agent offers the greatest possible protection against misuse of the data. Is there something that data may be freely distributed or used, cancel the application.

Data from people with negative credit bureau are worth about 40 euros per 1000 records. They serve to identify “potentially defaulting payers” in shop systems. Either these customers are only offered in advance or even completely waived business. – But advertising in the mailbox is – thanks to sold data – then plentiful.

Loan without credit bureau – apply for foreign credit

Loan without credit bureau - apply for foreign credit

One of the frequently-picked loans with a negative credit bureau credit rating is non-credit bureau credit, which is offered through intermediaries or directly from Soulcredit Bank Liechtenstein. The application is made via a loan application. A negative effect on the already bad credit bureau creditworthiness is nevertheless excluded. The bank does not ask credit bureau.

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