More and more credit portals and loans are being advertised from the internet. Whether in magazines, online or even in television advertising online loans are ubiquitous. Anyone who thinks about applying for a loan today automatically thinks about being on the Internet. Only 10 years ago, was the only possible way to own house bank, today the situation looks different.
The Internet brings many benefits to the borrower. Through the online loans, the banks are for the first time in a real competition with other loans. The Internet not only compares the loans of individual banks with each other, but is also the breeding ground for online banks that offer only online loans.
Tip from the editor
Even if you want to take out a loan with your house bank, it is highly recommended to use a credit calculator online in advance. It is free of charge, does not obligate you to do anything and gives you a transparent overview with little effort. With the conditions that you have found for online loans on the Internet, you can approach your bank adviser in a personal conversation.
Why an online loan can be cheaper?
Direct banks have the advantage of not having to operate bank branches in many locations. The costs incurred by bank branches, on-site staff and property maintenance must be covered by revenue from financial products. The online bank, on the other hand, lives 100 percent of the website and saves many additional costs. These savings can be passed on to the customer through more favorable conditions.
Advantages and disadvantages at a glance
- Interest rates: often more favorable conditions
- Selection: No binding to a specific bank
- Transparency: Good transparency and comparability through credit calculator
- Speed: Often faster processing than at the branch bank
- Contact: No personal contact to the customer advisor
- Symbiosis: Possible symbioses of several financial products can not be used
- Effort: Borrower is burdened with more research
How can an online loan be taken up?
Take for example our loan calculator and enter the required key data for your desired loan. Within a few seconds you will get an overview of all offers that are available. Right out of the comparison, you can apply for your online loan.
In the next step, you will receive all necessary documents from the selected bank by post. Fill in these documents, submit all the necessary documents and refrain from using the PostIdent procedure.
Taking out loans online – new technologies make it even easier
Even though numerous banks, especially branch banks with online loans, are still adhering to the PostIdent procedure, other banks are showing that they can do it differently. The fully digital loan application is becoming more and more popular.
The customer still uses the credit comparison for online loans. If he has found the right product, he goes as usual on the side of the provider. There he fills in all forms on the screen, which are necessary to be able to take an on-line credit. Also not new is that he sees the loan offer immediately on the screen, or receives by e-mail. At this point, there was usually a medial break in online loans.
The direct access allows the applicant to access the bank account once. This eliminates the need to copy or print and send account statements. In the next step he uses the electronic signature to finalize the contract. Finally, he legitimizes himself in the VideoIdent procedure with his valid identity card or passport with residence confirmation.
No more paper, no way to the post office – it can not be more convenient to apply for an online loan.
Online borrow at branch banks
Branch banks also offer online loans, which is not uncommon. For the consumer, however, a pitfall hides here. The credit comparison shows that the conditions are quite acceptable, so why not pay your own bank a visit and take out a cheap loan?
In this case, it is advisable to take a very close look at the borrowing rate and the APR and compare it with the figures from the internet. It quickly becomes apparent that these interest rates are not consistent with the information on the Internet, but are, in part, significantly higher.
The banks also have a suitable answer immediately, which is why it is more expensive in the branch than to take an online loan. There is a consultant in the branch who advises competently (and takes the forms out of the printer). Now the lending rates in the branches are not set in stone and quite negotiable. It may well be worthwhile to address the topic of interest rates for online loans for a contract in the store. The employee has sales specifications, he has to sell.
Where do the Germans borrow?
Interesting is the question of how borrowing has changed. The following table with numbers from 2013 provides information and shows that Online Kredit has long since found its place:
|Type of borrowing||In percent|
|In the branch||37|
|In other way||28|
|Online appearance of a bank||14|
|On-site at a mediator||10|
|Online loan comparison portal||7|
In the period between 2014 and 2017, the share of online loans increased from 21 percent to at least 27 percent. This number summarizes the financial statements via a credit comparison portal with an application via the homepage of a bank. In sum, the proportion of those applying for online loans also rose from 21 percent in 2013 to 27 percent in 2017.
Mini Loans – The Ideal Online Loans
The growth in online lending continues, as a new credit product has become established on the market in 2018 and 2019. We are talking about so-called mini-loans, the allocation of which is exclusively online. Mini loans are classic online loans. They range in size from 50 USD to 2,000 USD. The repayment is made in one sum or in two installments, depending on the loan amount. In Gera-Pen, these loans are known as “payday loans” because they are repaid with salary.
If you want to take such an online loan, you can look forward to an extremely slim loan application. Some providers do not even set a minimum income and do not provide a credit bureau request. If a provider asks for an income, it usually only needs 500 USD a month to be able to take up these online loans.
Installment loans to me unbroken demand
The low level of interest rates may be one of the reasons why the number of loans granted since 2006 has reached a fairly high level:
|Number of installment loan agreements in Germany from 2006 to 2018 (in 1,000)|
|in a thousand|
What to look out for when you want to take out an online loan?
Basically, there is little to note if you want to take an online loan. Of course, the interest rate plays a crucial role. But it can also make sense to select in advance which providers will accept free special repayments or early repayments. On the other hand, some borrowers may need a break. Also in this case, there are banks that offer such a procedure already standardized and without additional costs. An important indicator of possible interest rates is the two-thirds interest rate. It indicates the maximum interest rate that at least two-thirds of the borrowers pay. The lower the two-thirds interest on an online loan, the greater the likelihood that you yourself will benefit from the lower interest rate.
Same customer status despite online credit
Even if one of the branch banks receives a loan via the internet, the customer has the same status with the bank as a customer who was in the branch. A loan application made on the Internet thus leads to no identifiable disadvantages.
What types of loans exist as online loans
Nearly every type of credit can also be applied for on the internet. The possibilities are manifold and there is a loan calculator and a comparison of many different providers for almost every credit option. So do not be afraid to use the Internet and its many options.
It is interesting to have a brief overview of the types of credit that Google users most often search for.