The building society contract is an evergreen among the secure financing instruments. The level of trust that savers place in this form of savings is correspondingly high. A solidarity community of savers saves money that is made available to the members of this solidarity community who are entitled to subscribe according to a promulgated key at a regular payment date on favorable terms. In this way, Construction offers a stable calculation basis for all those who are looking for predictable real estate financing. Yield-safe income combined with the advantages of the state housing premium and a worker savings allowance are the pillars of this still popular financing building.
Instant money as a loan
Our topic is instant loan through home savings. How does such an instant loan work? This path opens up by applying for a so-called construction instant loan. This instant loan through home savings does not have anything to do with the classic home loan. The conditions vary accordingly. In contrast to the cheap home loan, the borrower has to finance his immediate loan from the home savings at the market interest rate. A number of German building societies currently offer instant money in the form of a loan of up to USD 25,000.
Redemption-free variant of a loan
The loan model “instant loan ” is fundamentally based on a, or to be concluded, building society contract. The peculiarity is the repayment-free version of the loan, in which the instant loan to be taken up only pays interest. The loan will be repaid at a later date, namely with the allocation of the home savings contract, into which the saver made regular payments in accordance with the contract.
The advantage of the “ instant loan” model is obvious: Although the Bauspar contract is not yet ready for allocation, the applicant requesting an instant loan receives his loan immediately. However, he also takes risks, because there is no repayment before the building society contract is allocated, ie the loan debt to the building society exists until the allocation date. Since building societies cannot guarantee a de jure allocation, there is a certain systemic residual risk in the “instant loan building society” model, which the borrower should be aware of when taking out such a loan.