If the topic of instant credit with cash payment is mentioned, it does not mean that the loan is paid out immediately after approval. An instant loan with cash payment rather refers to the fact that there is cash on this loan that can be used freely. This is not a matter of course for all instant loans. If an instant loan is taken out in connection with the purchase of goods, which is often the case with electronics, furniture and cars, the loan is not paid out to the customer in the form of cash. In these cases, the instant loan is granted for a very specific purpose. In practice, this is as follows:
A customer wants to finance a car with credit and therefore turns to a car dealer. For example, if the car bank approves the loan, the customer gets the car – the loan is paid in return to the dealer who provides the car. The situation is similar with furniture and electronics. It is often an instant loan because it is granted immediately, but there is no cash payment to the borrower.
Consumers who are actually looking for an instant cash loan should know the differences. There is a difference between a cash payment and a cash payment. Most of the loans that are advertised in this way are paid out in cash to the borrower’s checking account, who can then use the money freely without having to report to the bank. Most direct banks that advertise the instant credit with cash payment do not have any branches in which a cash payment could take place.
The cash payment for classic loan applications in the form of cash
A credit with a cash payment, in which money is actually paid out in cash, is rather unusual today because we are in the age of cashless payment transactions. It also has something to do with crime. Many banks have very little cash on hand. Even if customers want to withdraw a lot of cash from their own account, they have to register with their bank beforehand so that they can stock up on cash. If the instant loan is taken out at the house bank and a cash payment is desired, this is of course still possible today. However, the procedure with the cash payment is no faster than a transfer. The money has to be requested, and the bank can transfer the current account just as quickly.
The situation is somewhat different with a mortgage loan. Here the customer goes to the pawnshop, deposits his deposit and always receives the loan in the form of a cash payment. As a rule, this is also about smaller amounts. Customers who go to the pawnbroker often only need the money for living expenses and not for the purchase of consumer goods.
How cash payments for online loans work
When applying for an online loan from a direct bank, there is no bank counter and no branches. Nevertheless, an instant loan with cash payment can be applied for online. The term cash payment only refers to the intended use. The credit will not be transferred to the borrower’s account in cash. The latter can then use the money as he wishes.
Instant credit, where cash is paid out directly, is no longer standard. Standard is an instant loan for free use, where the borrower gets money transferred to his account and can then do what he wants with it.