Payday Loans in Austria, All You Need To Know:

Compare the best payday loans online for free and in just 5 minutes. From FUNDGECKO we show you the small print of all the loans on the market, we explain what you should know before contracting them and how to get the best offer.

 

The current market for payday loans

• The average bank lending rate as of January 2022 was 1.59%. However, the rates surged by 4.31% as of February and the trend anticipatedly continues amid the Russia-Ukraine war.

• The European Central Bank (ECB) has stepped in to cushion financial providers and borrowers from a sudden financial turmoil by announcing that it would gradually rather than suddenly increase the cost of borrowing. 

Hence, take out a loan while the rates are still low.

How to compare between online loan offers?

One key step towards getting a good payday loan is learning how to compare the available options using parameters such as loan amount, interest rates, repayment terms, commissions, and any other fees. 

How to use FUNDGECKO to get payday loans

Our team of professionals is out to help you discover the best financial options. We make the work easier for you by informing you about a product’s characteristics, operation, and conditions. 

These are the steps you’ll follow:

1. Discover all financial products you’re interested in and compare them for free.
2. Take a detailed tour through their files to learn about the contract conditions and the small print.
3. Have your questions answered and your doubts cleared in the FUNDGECKO forum. Our experts offer a free consultation.
4. Click on “Contract” to visit with us the website of every provider and start the loan application process.

Our website has a comment section where you can add comments and views about our services to help other users.

How to apply for a payday loan?

The process of application for a payday loan is somewhat less taxing. However, the methods of application vary with the entities. 

Below are some of the steps you’re likely to make with any entity in Austria:

1. Identify two or three entities that you’re interested in, consult about their services, and compare them to find an option that best suits you. Be sure of the reputation of the entity beforehand.
2.  Fill out the application form that the entity sends you with your personal data and select your preferred loan conditions (amount, repayment term, and purpose).
3. Get a pre-approval notification in a matter of minutes for the online application and days for the in-office application.
4. Be sure to provide all the documentation requested to avoid going back and forth. You may submit the documents through whichever means that the entity requests you (mail, online, in-office).
5. If the loan application is approved, the entity will send you pre-contractual information that has all the operational details and conditions of the loan including amount, term, interest, commissions, etc. Be sure to read through the whole information.
6. If you agree with the terms and conditions of the loan, you’ll be required to sign up for the contract either through digital signature or in-office.
7. Get the funds. Payday funds have fast concessions and may not exceed 2 days.

Requirements for payday loans in Austria

It’s not yet over until the lender approves your application. While there are not so many eligibility criteria used with payday loans, you want to make sure that you meet all the irreducible minimums:

• Be of legal age. Some entities will deny applicants who’re less than 20-years-old.
• Have an Austrian residence proof. Expats will have to provide a permanent residence card.
• Demonstrate your ability to repay the loan through a stable and sufficient income.
• Don’t have too many debts as this will discourage the lender from financing you.

If your name is blacklisted with any Austrian credit bureau, either KSV or SCHUFA, lenders will be laid back to give you the funds. Work to ensure you have the recommended healthy level of debt which is 35-40% of your monthly income.

Documentation for applying for a payday loan

Be sure to have all the documentation needed. Lack of even one documentation might disqualify you for the loan. 

Let’s look at the must-haves:

• Valid proof of identity
• Bank statements showing income and expenses of previous months
• The last income tax return (may not apply to small amounts)
• Proof of purpose. This may also not be required with small amounts
• Proof of income. Some entities will require the last 3 payslips, the receipts of the last pensions or the payment of the self-employed receipt, the social security settlement, and the VAT and income tax summary.

Taking out a loan from a bank where our income and receipts are domiciled will spare us from the hassle of much paperwork since the bank already has the information needed. If applying from a new entity, be sure to submit all the required documentation.

Who grants payday loans in Austria?

Banks had taken the lion’s share in providing consumer credits until the 2008 financial crisis when other financial platforms and companies got their way into the Austrian market. 

Below are the lenders that broke into the market and have grown at a brisk rate:

• Bank entities
• Credit Financial Institutions (CFE)
• Private Lenders
• P2P Lending Platforms

Let’s take a quick look at each of the options and their services.

Financing through banks

• Wide range of products
• Big loans and loan flexibility
• Longer repayment periods
• Competitive interest rates

• Long application processes involved
• Loans attract more commissions
• Stringent eligibility parameters like seniority

Credit Financial Institutions

• Financing for any purpose
• Favorable interest rates
• Less commissions involved
• Quicker concessions

• Strict eligibility parameters like in banks
• Adverse effects on credit history

Financing from private companies

• Quicker concession
• Less strict eligibility requirements
• Loans accessible to newbies

• Unfavorable interest rates
• Adverse effects on credit history

Financing through P2P platforms

• Hassle-free online application
• Available to applicants with a negative credit score
• Excellent financing conditions

• High interest rates
• Slow concession
• Not available to applicants with a negative SCHUFA score

FAQ: Frequently Asked Questions

What is a payday loan?

A payday loan is a type of credit that’s designed to be fast, short-term, and require fewer qualifications. It is designed to finance borrowers without savings. The loan comes in handy when in need of a financial injection, say in case of emergencies or when buying a car, renovating your home, making a big purchase, and others.

Many lenders in Austria will check into your credit history before giving out personal loans. The Data Protection Act 2000 came in to protect individuals from being discriminated against based on available digital processes only which had brought about economic and inequality adversities to individuals.

Why don’t you give me payday loans?

Getting a payday loan in Austria should be an easy process especially because fewer qualification criteria are used. However, if you’re not able to get financing, you might be having a poor credit score, blacklisted on SCHUFA or KSV, or have failed to provide the right information and documentation to the lender.

What is the INE form for a loan?

The Standard European Information (INE) form is a document that the lender provides the borrower with that details the credit agreement, the terms of operation and service, and personal loan conditions: amount, interest, term, commissions, other fees, etc.

What is the binding offer of a payday credit?

A binding offer is a document that the lender or entity gives you before you sign for the credit. The lender gives you 14 calendar days to go through the clauses and conditions of the loan, comparing options. 

Can payday loans be paid in advance?

The Austrian law allows credit consumers to make loan repayment in full or part before the required time. The borrower will be required to notify the lender in good time before making the repayment. Some lenders will have you pay the early repayment fee.

What if I take out a loan online and then regret it?

It’s human to do something then regret it later, and the Austrian Law has that provision when it comes to consumer credits. If withdrawing a loan, the borrower will be required to do so within the required 14 calendar days without getting a penalty. However, if you withdraw a loan after 14 days, there may be penalties.

What happens if I don’t pay back a payday loan?

Austria has several credit bureaus that seek to protect lenders from unsecured lending. Hence, failure to repay a loan will have your name listed on the credit bureaus’ blacklists as well as a negative credit score which will hinder you from getting loans in the future.

When to Apply for a Payday Loan

A payday loan is what you get when broke and need some quick cash to hold you over until your next salary. It can be of benefit to make a big purchase, launch or complete a project, debt consolidation among others.

Payday loans mostly come on the same day and don’t require seniority. Hence, if you don’t mind getting funds from a new entity, then the credit is for you.

The loans involve fewer eligibility criteria, hence they may also be applied by expats who meet the minimum requirements of the contract.

While the process might be more complicated for foreign applicants, there are banks and entities in Austria that offer loans to expats.

When to Apply for a Fast Loan

A fast loan is what you’ll opt for when in need of a quick financial fix. You’ll not get so much money yet the interest will be high. The repayment period is also short. The loan is only required when there are no alternative financial sources or during emergencies.

However, irresponsible application and spending of this type of credit might hurt your credit score. Hence, only apply for the loan when necessary.

Wrapping Up

Always be sure of the financial option you choose and go through their contractual terms to avoid making unexpected payments in the future.

Take out a loan size that you’re able to repay and spend the funds responsibly.

We hope that you’ll choose one of the mentioned financial options to solve your financial problems.

About this page, our methodology

What is this page for: at FUNDGECKO, we take time to provide to our users the latest and best available information about consumer credits to make them have a seamless financial decision-making process. 

Source: information regarding regulation on consumer credits has been drawn from the Austrian Law, government portals, among other reliable sources. 

Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.

About us: FUNDGECKO is an online comparator website that’s tailored to answer all your questions about consumer credit and help you compare the most attractive financing options in the market. Besides comparing, we avail all the necessary information you need about the products to help you make an informed financial decision.

Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.