What is a lightning loan as well as the advantages as well as disadvantages

Who speaks of a lightning loan or hears of it, this certainly not in relation to the natural spectacle of a lightning connection. Nevertheless, the connection of the word lightning with the notion of credit is not necessarily outrageous. The lightning loan basically expresses something that can be expected from such a loan in a financial emergency that requires a quick fix. The lightning fast availability of a requested loan. For example, if you receive an unexpected short-term bill that does not allow you to wait until the next salary arrives, you are a classic candidate for such a lightning loan. Especially if no alternative financial solutions such as reserves or the credit line can be used for this purpose.

Key features of a lightning loan

Key features of a lightning loan

If it has to go fast, then usually only a lightning loan, in question. Frequently, such a loan   Also called as a quick loan and / or instant loan. For a conventional installment loan, which one knows from his house bank or just from the Internet, is normally anything but fast. In addition, conventional installment loans with a negative private credit entry can hardly be applied for successfully. Lightning loans are then considered necessary when it really has to go fast. In addition, a timely payment to the borrower should be made without the greatest possible bureaucracy. However, it is necessary for this to be done on the part of the applicant. Above all, this requires the provision of required credit documents (salary statements, etc.). These must then also be made available to the lender immediately.

The conditions for a lightning loan

The conditions for a lightning loan

In order to receive a lightning loan, it is imperative that the lending bank be provided some information very promptly. The transmission of these documents is regular via e-mail, in exceptional cases also via fax. Mostly these required documents are one

  • Copy of the proof of identity
  • account card
  • up to three bank statements of the last months with the proof of a regular salary receipt
  • current salary certificate or unfinished employment contract.

At best, these documents should already be available when applying for a lightning loan. Only in this way can any loss of time by searching out the documents be ruled out from the outset. Any time delay is equivalent to a late payment of the TackCredit. Otherwise, the real goal of the quick availability of money can not be achieved.

Advantages of a lightning loan

Advantages of a lightning loan

The main advantage of a lightning loan is the quick availability of the desired loan amount. Of course, provided that you have done all the necessary preparatory work as an applicant. In addition, these loans are often available without any credit rating. This makes this type of loan particularly interesting for those people who have negative entries in private credit, Creditreform and / or other credit reporting agencies. Here also a clientele is served, which would not receive a loan with regular banks. Another advantage of a lightning loan is the often lower minimum loan amount compared to a conventional installment loan. This minimum loan amount for most offers is 1500 € minimum. Some providers of lightning loans also offer the option to extend the first installment for the repayment of the lightning loan up to 90 days after receipt or payment of the loan.

Disadvantages of a lightning loan

Disadvantages of a lightning loan

Basically, the TackCredit applies as well as with all other types of credit: The conditions between the individual loan offers for a Sofortkredit usually differ considerably. So anyone who has the need for a lightning loan, should be keen to inform themselves comprehensively about available credit offers. So the conditions for an instant loan or lightning loan objectively compare. Only in this way can it be avoided that the already more expensive lightning loan in comparison to the simple, classic installment loan becomes even more costly than absolutely necessary. This is especially true when it comes to taking a quick loan to a higher sum. 

The interest rate applicable to lightning loans (effective annual interest rate) is usually much higher than the interest rate for a classic installment loan or an instant loan offered by a regular bank. The reasons for this are quickly explained: The annual interest rate is set by the government and monitored by the Financial Markets Authority (AFM).

  1. Banks, which offer lightning loans, orient themselves with the interest offer for a lightning loan at the creditworthiness of the applicant. In plain language this means that whoever has a good credit rating receives a correspondingly attractive effective annual interest rate. Where, however, the one who has just a not so clean vest at the private credit, the interest rate increases accordingly.
  2. However, most providers of those lightning loans often work without this AFM license. This carries the risk of being at the mercy of the credit provider in terms of the terms of such a loan. It is true that the AFM can impose fines on misleading information and high costs or interest charged by some providers. However, in this case someone would have to complain about such a dubious behavior of the lender at the supervisory authority.

In addition, the possibilities of a special payment granted in conventional installment loans as well as early loan repayment are often completely excluded. At least in the latter also often associated with high costs, the so-called Prepayment decision.

Special features of a lightning loan

Special features of a lightning loan

For all the positive as well as disadvantageous features of an instant loan, such as the generally higher interest rates per annum, there are also a few special credit features for one or the other provider, which make lightning loans special. Although this is not so-called unique selling points, but still interesting opportunities in the context of an offer for a Sofortkredit / TackCredit. One of the most interesting features in such a loan is the granting of a so-called payment break or installment break. With this rate break available at some providers, it is possible for borrowers to suspend the monthly installment for their lightning loan once a year.

Rate break at the TackCredit

Rate break at the TackCredit

In order to be able to claim a rate break offered in the context of using a lightning loan, the following prerequisites must be met by the borrower:

  • the first installment break may be claimed if at least 11 loan installments have been paid by the borrower on time and in accordance with the terms of the contract to the lender
  • If the installment break is to be claimed, the installment break must be agreed in writing with the lending bank no later than five banking days before the contractually agreed maturity of the loan installment
  • the income and employment relationships of the borrower are still unchanged

Note: When claiming the installment break, the term of the TackCredit automatically extends by exactly the duration of the agreed payment break. Thus, the accrued interest must therefore be paid for the period of the payment break.