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Today, many loans are no longer issued by branch banks, but applied online. But why are these online loans so popular? The advantage is obvious: due to less bureaucracy, more favorable conditions can be passed on to the customer and the application is usually made quickly and easily within a few steps. A cheap online loan is so fast in the account. Some advertise providers even with an online loan with instant confirmation.
How is the allocation of an online loan?
The road to online credit today is very simple and requires only a few steps, which we explain here.
Step 1: The personal data
In the first step, the desired conditions, ie credit period and loan amount must be specified. Subsequently, the borrower must provide the personal information. Here, the customer must enter both his name with address and his identity card data. Based on this data, a first legitimation check can be carried out.
Step 2: Financial information
Financial information must include information on salary or other income, as well as information on monthly expenditure. However, usually only payment obligations such as rent or maintenance costs have to be stated. The cost of living will be charged by the Bank, depending on the size of the household. Using this data and of course the duration and amount of the loan, the monthly installments are determined.
Step 3: The loan application
In the next step, the customer or borrower must indicate what the online loan is needed for. Should be used to finance a car or furniture or electrical appliances. Depending on the type of financing, the interest rates will vary.
Step 4: The credit check
In order to be able to check the creditworthiness of the customer, in most cases a consent to the query of the private credit information must be given. Thus, the bank has the opportunity to query the private credit of the customer. If this private credit information is positive, lending may occur. For some institutions even an immediate payment is possible. However, there are also ways to get a loan despite negative private creditauskunft!
What should be checked before concluding a contract?
Cheapest Online Loan? If the credit decision is positive, the online loan can be applied for immediately. Before this is done, however, the amount of interest should be checked. Since this is determined depending on the credit rating, the interest rate can vary. If this is higher than the current overdraft interest rate on the current account, it should be refrained from borrowing, for example, for small amounts of credit, as it is simply better to go down with the current account. Furthermore, it should be checked before entering into a contract whether special repayments can be made at any time within the term.
The cheapest online loan you can easily find with our comparison calculator
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Apply for an online loan quickly and inexpensively
If you want to have the money in your account tomorrow, you should not wait too long and quickly make a loan request. Our credit comparison check also helps with the question of where you can or should do this. Among them you can also find our smava credit experience.
If the above steps are taken properly, an online loan will immediately lead to a credit decision and, for some providers, an immediate payout. The money is then on the same or within a few days on the desired checking account. And who wants to have additional security, which can incorporate a residual credit insurance, which also means higher costs. With this protection, the customer has protection against death, unemployment or incapacity to work. A loan that can be applied for quickly and safely – this is the online loan.
Requirements for an online loan
Although online loans are, as I said, easier to obtain than larger sums, such as the savings bank, there are of course some basic requirements that must be met and some exclusion criteria.
Conclusion on the online loan
Immediate promise, simple loan application, no lengthy discussions with the bank: An online loan has many advantages compared to a traditional loan with the bank and the risks are very limited. Duration and loan amount can be adjusted easily on some regulators and if everything is right, you get an instant confirmation and depending on the provider even a payout within a short time.
Nevertheless, one should pay attention to a few things: First, of course, you have to worry about whether you can really afford the loan and wants. It may be wiser to save for a while than to take out a loan. On the other hand, you should definitely consult a credit comparison and make sure that it is a reputable provider. Then nothing stands in the way of a loan.