Online payday loans are becoming increasingly popular among consumers. This is because they have a number of advantages over a classic one. Quite a few providers promise potential customers online payday loans with immediate approval and quick payment of the loan amount.
How long does it actually take to withdraw?
Unfortunately, there is no concrete answer to this question. The time from making the loan application to paying out the money depends on many factors and varies from case to case. However, it takes longer than many applicants initially estimate. As a rule, you have to expect several working days. A processing time of 5 to 8 working days is not uncommon.
Why does it take so long?
There are mutliple reasons for this. The loan application can be made online around the clock, on any day of the week and at any time, but processing takes place in a bank during normal business hours. For example, if the request for a loan arrives late Friday afternoon, processing won’t start until the following Monday.
In addition, the potential lenders first check the applicant’s creditworthiness and identity. The information that the applicant enters in the form on the provider’s website is for guidance only. Commitments made on the basis of this information are not binding.
The information must be checked so that the bank can make a binding commitment. To do this, it is usually necessary to send the required documents (proof of income, copy of ID card, registration certificate, etc.) to the lender by post. This usually takes 1 to 2 days. You can estimate another day for the actual processing of the request. In many cases, the identity of the applicant must be confirmed using the PostIdent procedure, which in turn takes 2 to 3 days.
The applicant will receive a form from the provider. He must then report to a counter at a post office, present his ID and have his identity confirmed. The information is sent back to the lender and only then is the loan amount transferred to the specified account. The transfer takes another working day, sometimes two, if it takes place towards the end of the working day.
What can you do to speed up the process?
When applying, you should be sure that you have all the required documents on hand. Before submitting, you should make sure that all forms are completed correctly. If the application is being made at the end or at the beginning of a month, it is advisable to wait until the current proof of income is available. The time required for mailing can be shortened somewhat if you don’t throw the letter with the documents in the mailbox, but hand them in at the post office at the counter.
This often makes it faster, especially in rural areas. Some loans can be applied for online, but can be processed at a local branch of the bank concerned. This procedure is much faster since there is no postal route. Just bring the necessary documents and ID with you to the interview. If the application is approved, the money can be transferred on the same day.