Online direct loan supports municipalities

by | Mar 31, 2020 | Media

Aktuelle Neuigkeiten zu Loanboox

DKB and loan platform Loanboox provide liquidity loans proactively with immediate effect

Loanboox and Deutsche Kreditbank AG (DKB) have jointly developed a fundamentally new solution for taking out and granting municipal liquidity loans: an online loan comparison with direct loans. The service is available immediately for all municipalities throughout Germany.

Compare and conclude liquidity loans online much faster

Currently, taking out loans is a lengthy process for municipalities: several offers have to be obtained and compared. Communication with lenders usually takes place in writing, by telephone or by fax.

With the online direct loan, this process is reversed, digitalised and thus considerably simplified for municipalities, especially in the current situation. Via the digital loan platform Loanboox, local authorities receive daily updated offers for short-term loans. Lenders such as DKB provide their offers, i.e. credit limits with different terms and corresponding interest conditions, proactively and not only upon request. The borrower can compare the offers directly online. After selecting the desired volumes and terms, the loan is bindingly concluded on the platform. Thus, the demand market is transformed into a supply market.

“Online lending for municipalities is a logical step in a digitalised world and will become an important instrument for municipal financing on the way to efficient e-government in the future. The new service also pays into our current growth and digitalisation strategy,” says Thomas Jebsen, Market Board Member of DKB. The direct bank is a financial partner for more than 4,000 municipalities, districts and municipal associations and focuses on proximity to its business customers at 26 locations nationwide.

Tender not applicable in future

For the future, the connection of further lenders is planned. In the future, this will eliminate the need for a call for tenders, as several offers will be available for comparison at the click of a button. “We are currently in talks with various financial institutions that want to use direct loans in the future to actively place surplus liquidity. We also plan to gradually roll out the service in other countries,” says Stefan Mühlemann, founder and CEO of Loanboox.

Direct loans available immediately

The direct loan is now available to all municipalities throughout Germany. Previously, the service had been tested and optimised in a six-month test phase with 50 selected municipalities. During this test phase, 40 loans with a total volume of around 400 million euros have already been brokered.



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