Loans are part of everyday life for the majority of German households. The little house in the countryside, a new car or the renovation of the home furnishings are mainly financed with a loan. Up until a few years ago, your own bank was the first point of contact for all credit issues. After the outbreak of the financial crisis, however, the confidence of many bank customers in the credit institutions and the restrictive lending of the banks caused additional displeasure. Against this background, payday loans created a new segment in the financial sector.
The payday loan: fast and unbureaucratic
The payday loan is characterized by its quick and unbureaucratichandling. With this form of financing, unexpected gaps in the household budget can be plugged and material needs can be easily fulfilled. Often it is suddenly occurring circumstances that require an increased financial need. An unscheduled repair of the car, a broken washing machine, or the financing of a new children’s room can create serious gaps in the budget. The overdraft of the checking account is not a real alternative due to the enormous interest charge.
Credit negotiations with the house bank over an installment loan can take a long time and the own fixed deposits are usually not available in the short term. In this situation, the payday loan offers an elegant solution. It is one of the fastest and most effective solutions to meet short-term financial needs. Lengthy negotiations with a bank employee are no longer necessary, as are long waiting times for the loan to be approved. It is not necessary to disclose all financial circumstances in detail and a Schufa entry is usually not made either. On the other hand, those who value the financial competence of a bank still have the option to apply for a $ 30,000 loan from MoneyEuro Link Bank.
The principle of operation of a payday loan
The payday loan is a loan that the borrower receives from an unknown private individual. Contrary to the first impression, it is not a loan from friends or acquaintances. In this form of loan, special online portals act as an intermediary between the lender and the loan seeker. There both parties have the opportunity to post and publish their offer. Lenders and recipients can now contact each other and negotiate the terms for the loan. The conditions, the repayment period, the amount of the loan and the collateral are agreed. Once all open questions have been resolved, the loan is paid out and the recipient can freely dispose of the entire amount.