Loan approval
A loan approval is a commitment entered into by a credit institution toward a customer by declaring itself bound to disburse a loan. The loan approval is fulfilled only when the loan has actually been disbursed.
There are two types of loan approvals: a revocable one and an irrevocable one. If a credit institution grants a loan to a customer (a prospective borrower) on a revocable basis, there is the possibility that the approval may be withdrawn. If, however, it is an irrevocable approval, it cannot be revoked.
Things to know about loan approval
Whether a loan approval is revocable has no influence on the borrower's right to terminate the loan. The loan can be terminated at any time.
An example of a loan approval is the overdraft. The customer can draw money as needed up to the credit line limit. Thus the credit line represents a loan approval that allows the customer to withdraw money up to that limit.
In order to receive a loan approval, certain requirements and formalities must be met. First, the credit institution primarily looks at your creditworthiness so that the risk of default is as low as possible. In doing so, the credit institution examines, among other things, your inflows and outflows on your account to determine whether you have a regular income.
What requirements must be met for a loan approval?
Ideally you work in a permanent employment relationship that has already existed for more than one year. You must provide the lender with account statements for the last three months so that it can get an overview of your ongoing payment obligations and then make a decision. If you meet the criteria, nothing stands in the way of a loan approval.
Online loan approvals proceed similarly to those at branch banks. The advantage of online loans is that the processes are much faster than at a branch bank. From application to approval only a few hours may pass. Therefore, online loans are especially a very good option for consumers who need money quickly and cheaply. However, after submitting an application online, banks usually first grant a preliminary approval, which only converts into a firm loan approval after all data has been checked.
The review usually includes a Schufa credit check and the submission of income documentation at many banks. Once the loan contract has been signed by both the customer and the lender, it is legally binding and the amount is disbursed.
What advantages does loan approval offer at MAXDA?
MAXDA does everything possible to ensure its customers are satisfied, receive a loan approval and thus that a relationship of trust between customer and lender can develop. First, the customer submits a non-binding loan request to MAXDA, after which all documents for the loan application will be sent to you by post or email; you then complete, sign and return them properly. A staff member can then review your loan application on the same day.
If questions arise while filling out the loan application, do not hesitate to contact one of our competent staff. All your questions will be answered. If the review is positive, you will receive a loan approval. The loan amounts that MAXDA grants range between 3,000 and 250,000 Euro.
Furthermore, for successful loan placement it is necessary that you also provide personal information, such as your name, address, date of birth, marital status and information about your financial situation. In addition to the signed loan application, the latest payslip must also be provided as security.
Under which conditions does MAXDA grant a loan approval?
An important prerequisite for a loan approval is a regular net income and the fact that you are at least 18 years old. In addition, job seekers also have a chance of getting a loan approval if a solvent guarantor is provided as security. The effective annual interest rate at MAXDA is, among other things, 3.99 percent and the repayment is made in fixed monthly installments.
You can start repayment four weeks after you have received the money. It is also possible to repay the loan in a single sum. There are no costs for a non-binding loan request. MAXDA relies on competence and reliability.
Furthermore, MAXDA specializes in private lending and real estate financing. The goal is to tailor the offer to customers' needs and wishes. Therefore, the products and services are offered with very attractive conditions and high-quality advice is emphasized.
In addition, we offer loans without Schufa. With a Schufa entry it is otherwise difficult to obtain a loan from a bank.
Further information about MAXDA
MAXDA operates as an independent service provider and works closely with well-known German and other European credit institutions, which creates many options and advantages for customers. MAXDA also has many years of experience as an expert for loans with or without a Schufa entry (many banks obtain a Schufa credit check. It can sometimes be difficult to obtain a loan from a branch bank with a negative Schufa score).
Friendly staff are available to answer your questions about your loan application.
If you need the money very quickly, help is available here as well. The disbursement is made 100 percent by post or by bank transfer. MAXDA offers special loans without Schufa entry, which for some loan seekers is the only way to apply for a loan. Submit a completely non-binding loan request. All you have to do is fill out and submit the online form. A staff member will then take care of your request and send you the required documents for your loan application by email or post, which you must fill out and sign. After that, you send these documents together with your latest payslip to MAXDA, where the review of the loan application begins immediately.
After the review, a staff member will contact you and inform you whether you have received a loan approval. If there are still questions open, please feel free to contact us. We can assist you in a personal conversation or by phone. Just contact us during the service hours listed below.
Frequently asked questions about loan approval
What is the credit line?
In finance, the credit line—often also called credit limit or credit facility—is understood to be the monetary upper limit up to which a borrower can make use of a particular type of credit. Extensive information about the credit line can be found here.
What is the difference between loan (Darlehen) and credit?
In everyday language, credit and loan are used synonymously. Accordingly, borrowers and loan recipients as well as lenders and loan providers are used interchangeably.
Basically that is not entirely wrong, but there is a difference. Credit is the umbrella term for money lending and the procurement of external capital. A loan (Darlehen) is therefore a subtype of credit. Loans are often used in the financing of real estate. In the loan contract, accordingly, higher amounts and longer terms are usually stated in the case of a loan, since a property causes high costs.