What is an express loan?

The express loan gives borrowers the opportunity to overcome short-term financial bottlenecks. In everyday life there are repeatedly unforeseen situations that require immediate credit. The fridge is broken, the car has a breakdown, or there is simply not enough pocket money for a long-awaited holiday. If the financial situation does not allow timely payment of outstanding amounts, the express loan can be the perfect solution. In this guide we explain how an express or emergency loan works and how it can be applied for.

What characterizes an express loan?

Normally, loans take a relatively long time until applications are processed and the loan amounts are ultimately transferred. Most loan requests involve a detailed review of Schufa data to check the borrower's creditworthiness. For long-term investments such as a house, a car or an apartment this is not a problem, but when speed is essential, the express loan is the perfect solution for the customer. Partly due to its short-term availability, the express loan is also referred to as an emergency loan, lightning loan or quick loan.

• Short terms
• maximum limit of €5,000 (as a rule)
• quickly available
• fixed interest rate
• uncomplicated processing on the same day
• Only available to consumers (personal loan)

How does an express loan work?

Everyday life is getting increasingly hectic. It happens quickly: a bill remains unpaid longer than planned, car maintenance gets lost in the hustle and bustle and shortly afterwards a larger repair is required. Exactly then many people experience financial tightness, because if there are no reserves but the car is needed to get to work, the question arises:

How can an unexpected bill be financed at short notice?

The solution is obvious and is now used by many banks and lending institutions. The express or emergency loan fills exactly this gap and provides quick relief in financial tight spots.

Express loan consists of the words express and loan. A certain sum of money should therefore be available within a short time. For this reason, the application for a short-term loan is completed within a few minutes. The MAXDA Kredit ohne Schufa, for example, also falls into the category of express loans. From the online application to the disbursement of the loan amount, ideally only a few days pass. The entire process is uncomplicated and fast:

The loan application: In the application form all requested data for the loan must be provided. This information serves for initial contact with MAXDA. Questions about address, age and the desired loan amount, but of course also about existing income are asked here.

The current financial situation is particularly decisive for the further processing of the express loan. The borrower must be able to repay this quick loan within the desired term. At the same time, it is an important concern of MAXDA that the amount of loans granted does not overstretch the borrower's financial capabilities.

In addition to some information about employment status and the resulting monthly income, the monthly expenses and obligations must of course not be missing. Only if all information is entered completely and as requested can the online application for the emergency loan be processed quickly and without further queries.

Submitting the loan application: As soon as all data has been truthfully entered into the application form, the borrower only needs to click on "Submit application". MAXDA receives a notification immediately and the loan application is processed. In most cases, the review of all relevant key data takes place within a short time. If there are further questions, applicants are personally contacted by an employee to smoothly supplement missing data.

Payout of the express loan: If the express loan is approved, the loan amount is paid out at short notice. For example, the instant loan can be paid out by sofortüberweisung within a few seconds. When finances are tight, the express loan is the perfect solution.

Repayment of the loan amount: Of course, after a successful loan application the repayment of the monthly installments is due from a certain point in time. In most cases, installments are debited on the 1st or 15th of the month, as this is when the majority of borrowers receive their salary. Many banks now also offer individual debit dates and thus adapt even better to the customer's wishes.

Who is eligible for an express loan?

In principle, an express loan is not aimed at a specific target group, because everyone can sooner or later face a financial gap in the household budget. Nevertheless, the quick loan is only possible for private individuals who want to use the money to fulfill a long-cherished dream or, for example, to pay an outstanding bill. A refinancing of an expiring loan may also be possible by taking out an express loan.

It is important that a regular income is available that enables the quick repayment of the loans. Thus students, pensioners and homemakers are also able to apply for an express loan. A regular income simply has to be present. Many banks accept, for example, a monthly net income of €500 as sufficient. Other lending institutions may have higher thresholds; it depends on the individual case. A comparison of different banks and offers can therefore be worthwhile.

Is an express loan possible without a Schufa report?

Here you must understand what is meant by a loan without Schufa. Even with a loan without Schufa, the lender must inform themselves about the borrower's creditworthiness before a loan is granted. Therefore, a query of the Schufa score—or a query at another scoring agency—by the lending institution still takes place. However, when an express loan is approved this loan is not registered with Schufa. As a result, the borrower's current Schufa score is not worsened.

There are certainly companies that grant consumer loans even without a Schufa report. Consumers should, however, avoid such offers, which are to be considered rather dubious. If the customer's entries in Schufa lead to refusal of the express loan, the financial situation may be so strained that repayment is hardly to be expected. The emergency loan is intended to provide short-term financial relief. If it were granted despite a negative Schufa, it would likely lead to further indebtedness of the consumer. This must be avoided.

MAXDA's express loans are granted exclusively after prior review of the Schufa score in order to protect both borrowers and lenders from unwanted obstacles. In the MAXDA Kredit ohne Schufa the customer's Schufa account is not burdened, however, because the loan we grant is not registered with Schufa.

What is the maximum loan amount for an express loan?

Conditions for express loans vary greatly between different providers. Comparisons are important to find the best terms for your needs. To compare emergency loans, all conditions must be listed transparently. Generally, an express loan refers to an amount between €500 and €5,000. Within this range personal loans are referred to as instant loans, express loans, emergency loans or lightning loans. Because of the low loan amounts, the risk for banks is manageable. Of course, almost every German bank still obtains a Schufa report to check the applicant's creditworthiness.

It is also important to know that people looking for an express loan tend to be in a spontaneously arisen problem situation. For this reason these emergency loans are limited in amount so as not to worsen the borrower's situation. Fair and transparent processing is therefore an important quality feature of a professional provider of express loans.

How high are the interest rates for an express loan?

The level of interest rates depends on the lending institution where the express loan was taken out and, of course, on the current market situation. Since an express loan is a very short-term small loan that is repaid within a few weeks to months, interest rates are in most cases somewhat higher, to make the granting of express loans attractive for banks. As the amounts are relatively small—between €500 and €5,000—the costs for the higher interest rates remain quite manageable. The borrower should ideally conduct a comprehensive express loan comparison to weigh the best conditions against the best services.

Does the agreed interest rate remain the same over the loan term?

Different loans have different terms. The longer the term of a loan, the more likely it is that after a specified period new interest rates can be negotiated. The interest rate is based on the key interest rate or the current market situation. If a loan is taken out at a particularly high interest rate, advantages can arise if, at the time of renegotiation, a lower interest level prevails. An express loan can possibly then also serve for refinancing.

For an express loan there is a fixed interest rate for the entire duration. Since instant loans usually have relatively short terms, the bank can guarantee a fixed annual interest rate. In general, very small loan amounts are repaid after 30 days. Other small loans run for example 3, 6, 9 or 12 months.

Payout of the express loan

How is an express loan without Schufa paid out?

Providers that enable instant loans without Schufa are mostly based in other European countries. For German banks, the Schufa report has become a routine step in the entire application process. If there is a negative Schufa scoring, taking out a loan in Germany is almost impossible unless the necessary securities or even appropriate guarantors are available. Express loans without Schufa usually also have a very short term, which is calculated according to individual specifications. In some cases the payout is made in cash at the respective lending institution; in other cases the money is delivered directly by post in a neutral envelope. Repayment works the same way. Borrowers of an express loan without Schufa must therefore go to the bank for each installment or send a letter with the required amount. When it comes to instant loans, there are certainly bad actors in the industry, so consumers should always be on their guard and examine and compare offers carefully.

At MAXDA we work exclusively with reputable German and European lending institutions to always be able to offer our customers an affordable and suitable offer. We rely on many years of experience, fairness and always transparent and comprehensible terms.

How long does the payout of an express loan take?

This question cannot be answered in general, as it depends on several factors. In principle, applications for emergency loans are processed very quickly. Because loan amounts for an express loan are usually requested due to a financial emergency, it is particularly important to keep the processing times of the forms as short as possible.

After requesting the money, it usually takes a few hours to receive feedback from the bank. If the answer is positive and the express loan has been granted, a short-term and uncomplicated payout can take place. The amount of the monthly installment is determined from the desired loan amount, the term, and the annual interest rate. Depending on the contract, special repayments may also be made.

If the customer chooses sofortüberweisung as an additional feature for transferring the funds, the money can be in the applicant's account the same day. In especially difficult financial situations, there is often no alternative to the express loan.

However, if data is missing in the loan application or was accidentally entered incorrectly in the application form, delays in disbursing the loan amount may occur. Sometimes further forms must be submitted. Often it is sufficient to scan the required documents and then upload them or send them by email to the responsible banker. Originals can then be sent by post at leisure. Normally the processing for an express loan should take at least 1 and at most 5 days.

Why can the payout of an express loan be delayed?

As already mentioned above, there are some factors that MAXDA has no influence over. If data are incomplete or submitted incorrectly or obtaining important documents takes too long, the payout of the quick loan can be delayed. In general, however, processing is quick so that the customer can soon breathe financially again.

Expired identity documents (ID card, passport) can also cause loan requests to take significantly longer than planned. Once all questions have been clarified, a rapid payout of the funds can occur.

To be able to grant the express loan, all data are verified. This often takes place via the Post-Ident procedure. This of course also requires a certain amount of time. Many banks also have a time threshold. This can, for example, look like this: the emergency loan application will be decided on the same day if all documents are submitted properly by 2 p.m.

Repayment of the express loan

How can the express loan be repaid?

In principle, the emergency loan is repaid in the same way it was taken out. In most cases the loan amount is transferred to a desired bank account so that the borrower can access it immediately.

Depending on the agreement reached, the monthly installments must either be transferred manually or debited by the lender. This is the usual method of repayment.

As already mentioned in the first part of the article, companies offering express loans without Schufa often prefer a personal handover of the money or sending the loan amount by letter. In this case repayment would also have to be made personally on site or by letter.

Are special repayments possible with an express loan?

Although the possibility of special repayments depends heavily on the requirements of the lending institution, in most cases it is possible to repay the express loan early with special repayments. By contrast, larger loans and mortgages that run for 20, 30 or 40 years are subject to the corresponding interest calculation. For these loans a prepayment penalty is charged. This compensates the banks for losses due to the shortened term of the loan.

How to recognize a reputable provider for an express loan?

In most cases reputable providers are very easy to recognize due to their transparent work. Nevertheless, there are always bad actors in the financial industry who deceive consumers and lure them with dubious contracts. A reputable provider has the following characteristics:

• Schufa check of creditworthiness -> Can the borrower afford the repayment?
• Transparent loan conditions -> Can the consumer easily find and understand all information?
• Maximum limit for express loans -> The lender thus takes responsibility and prevents over-indebtedness of the borrower
• Flexible conditions -> The express loan agreement can be individually adapted and optimized

If you are still unsure which provider to work with, you can either contact a consumer protection agency or leave the selection to an independent financial service provider. This provider is able to compare the most important contract conditions and thus obtain the optimum for the borrower.

Are there alternatives to an express loan?

Of course there are many alternatives to the express loan. If the household budget unexpectedly falters, there are various ways to balance it again:

Personal loan

If there is someone in the family who has a larger sum of money, a private loan can be agreed. Family member 1 lends family member 2 the desired amount and gets it back after an agreed time. Of course there are also some hurdles here. The threshold to ask someone in the family for a loan is relatively high. If there are problems with repayment, family relationships can suffer. A private express loan should therefore be very well considered.

Overdraft as an express loan

The overdraft is an express loan granted by the bank. Depending on the credit limit, the bank customer can overdraw their account and thus use the bank's service when needed. Unfortunately, this variant often results in very high interest rates, which often range between 12 and 15%. If the account is overdrawn too far, high fees and interest can result. Unfortunately, the overdraft is a vicious circle for many people. Once in the red, it is difficult to "save" your way out of the situation.

Private money lending

Everyone is probably familiar with the term "loan shark". These are usually dubious providers of financial services. Interest rates are very high and the collection methods of such providers are more than questionable. It is therefore not advisable to use such a service.

Why the express loan is the best solution for most situations

The express loan is ideally suited to bridge financial bottlenecks, whether such a bottleneck arises from a short-term purchase or from refinancing or settling an existing loan. Before borrowing money from family or simply overdrawing the account, it is much better to conduct a loan comparison. Conditions can thus be easily compared.

The express loan is a fast and uncomplicated solution for anyone who suddenly needs a certain amount of money. It is very easy to apply for and requires hardly any waiting time until final approval by the lending institution. Repayment of installments can be agreed flexibly, while the amount of the monthly burden is individually adapted to the borrower's financial capabilities. MAXDA offers a convenient online form to apply for the express loan.