Technology has made life a whole lot easier for people; from transportation to food processing and everyday activities all have been impacted by technology. Thankfully, banking and financial transactions have also benefitted from tech innovations and inventions. These days one can easily carry out financial and business activities and transactions online.
Have you ever wondered how it is possible for you to apply for a loan online and be approved or rejected almost immediately? It is because your application was processed by self-learning software. Sorry to disappoint you but we are not here to discuss self-learning software.
In this article, we will be giving you tips on how to access loans on the minute so stay with us. But if you want to know more about the software we mentioned, click here.
What Is an Instant Loan?
Just as the name implies, this is a financial product that offers the consumer approval of their loan application in minutes. Most often however, it is the approval period that’s in minutes; the disbursement may take longer but not usually more than 24hours.
In some countries and regions, one can actually get approved for the loan and get it all within an hour. The duration of disbursement t of approved funds actually depends on the laws and regulations binding banking in the said region or country. But whatever the laws, it is safe to say that one can always get lenders that will approve in minutes and disburse funds within the hour.
Note that not all loans can be gotten on the minute; the most popular type of loan that’s gotten this way is personal loans. Now here’s what happens when you send in your application:-
- The application would go straight to the bank’s computer system and the system will start to process the application.
- The system will check for payment remarks from the debt register and also investigate whether you have any outstanding debts.
- The bank/lender will check through their database to ascertain whether you are a customer or not.
- The system will automatically call for your credit history from the different sites that make them available.
- If there is any ambiguity with your records or history, the bank will carry out a manual review. This will elongate the process and your approval and disbursement time will be longer.
- Once the loan is approved, you will receive an email from the bank and a request to upload a digital signature to the loan document.
This is a basic process for most banks and financial institutions but expect that there might be some variations from one institution to the other.
Basic Requirements to Qualify for an Instant Loan
Much as the process of applying for a loan and getting approval has been reduced to minutes, there are still basic requirements for qualification. Below are some of the basic requirements that you should be aware of.
A High Credit Score
Due to the fact that loans on the minute are unsecured, it is very important that the borrower has a high credit score. The first thing that any lender will check is your credit history and what they are looking out for is your credit score.
In countries like Norway, the credit rating is from 1-100 where a higher number denotes a high credit score. This assures the lender that the borrower is good for the credit and would not default. If your credit score is higher than the minimum that has been set by the bank or financial institution, then your loan application will be approved immediately.
In America, credit score ranges from 300 to 850 with 650 to 680 considered as a good score. So in that system, if you have a score of over 700, you can be sure of instant approval of your loan application.
So it is important that you do all you can to maintain a good credit score at all times.
Steady Income and Cash Flow
When a prospective lender looks at the financial records of an applicant, they are looking to see whether the person has a steady source of income. That is why most lenders prefer to give loans to salary earners (especially those who have been on a job for long). If your income fluctuates and the source is ambiguous, most financial institutions will be wary of approving your application.
In cases where they might consider giving you a loan, they would require that you present a number of documents that will attest to the fact that you can pay off the loan as at when due. In the event that you are required to send in documentation as proof of your income, your approval or denial might not be in minutes as it will take some time to vet the documents.
Age and Citizenship
In Norway, the banks do not give loans to underage persons. Though an 18 year old is considered legal in most parts of the world, a good number of banks rarely give out loans to 18 year olds. The minimum age requirement on paper is usually between 18 and 25 years. But many banks actually peg their minimum age at 21 years.
Norwegian banks also consider citizenship and how long an applicant has lived in the country. If you are not a citizen of Norway, the banks expect that you are registered in the country and have lived there for not less than a year. Some banks require that you have lived in Norway for up to 3 years.
Note that the issue of age and citizenship applies to other countries as well but the basic requirements differ from country to country and from bank to bank.
In Norway, a BankID is required for you to get approved for loans on the minute. Note that these loans are usually without collateral. So when you apply, the bank will require your BankID which will enable them to confirm your identity and also conduct all the checks that they need to carry out.
It is the introduction of these BankIDs which are actually electronic signatures that has cut down the time for processing loan applications. Where it used to be days, it can now be done in minutes.
Before now, you had to send in your signature through conventional post and this meant that you couldn’t get approval within minutes and same day disbursement of funds. But nowadays, you can get an instant loan with BankID or lån på minuttet med BankID as it is known in Norwegian. Note that your BankID binds you legally to any contract that it is appended to. It is the same as appending a physical signature to a written contract agreement.
In these days of technological advancements and all sorts of tech devices, one doesn’t need to sweat to carry out any type of transaction. Much as this is a welcome development, you also need to know that this means that your information is easily accessible to anyone who really wants it. Therefore, if you intend to do honest business with banks or financial institutions, you need to maintain a clean and up to date financial history.
Do not take out loans that you cannot pay and never leave any debt outstanding beyond its due date. This way, whenever you truly need funds, you can quickly get access to it.