What are online loans and how to apply?
If you are thinking of applying for a loan and have doubts about going to a financial institution or request it from the comfort of your home by clicking on pages . Maybe the second option is very attractive.
In this article I am going to talk to you about what online loans are as well as how they work, their characteristics and types of online loans existing in the market . I hope that in the end you can have a global vision of this concept and you can evaluate what type of online loan you need for each moment. If you want to know more, do not hesitate to follow the lines of this article. Go for it!
Online loans What are they?
An online loan is a method of financing made through the Internet , in this type of financial operations, a private company is the one that grants you the loan under the solvency requirements, conditions and repayment terms, its main advantage is that the requirements for the approval of the loan they are less restrictive than any other financial institution since it is at the discretion of the lender that is the one that indicates the conditions.
At present there is no specific regulation for this type of financial operation, but the Bank presents a series of laws in which a large part of its formalization and operation can be supported.
Characteristics of online loans
Like any financial package, online loans also have characteristics that differentiate them from those granted by classic entities.
- Focused on the short term: The terms usually do not exceed 2 months for its return, since its purpose is to cover small expenses or face an unexpected payment. There are exceptions such as rapids that can reach up to a maximum period of 4 to 5 years.
- Speed of management: Of the above, they stand out for being very fast procedures that, after granting the loan, you can have the money in less than 15 minutes and up to 48 hours. On the other hand, the solvency study can have an instantaneous response.
- Cancellation flexibility: Generally, the entities that manage online loans can cancel the payment and shorten the period, reducing the costs derived from interest.
- Amounts not exceeding € 10,000: This type of companies indicate the maximum that usually is up to € 300 but can reach up to € 10,000
- No endorsements or other similar documents: No need for a guarantor or extensive documentation for the granting of loan
Types of online loans
Another point to take into account is to know how to detect the type of online loan that is being requested at each moment and would be:
- Personal loans: They are granted very fast and very easy. Everything is processed in less than 48 hours, given the risk borne by the companies that provide this loan, interest on late payments is very high, therefore, you must take into account the return periods.
- Quick loans: We speak of higher amounts than the previous point and are granted in less than 48 hours with amounts over € 1,000 and a maximum of € 10,000 and terms ranging from 4 to 5 years.
- Microloans: This is the most demanded offer in this sector, generally they are amounts not exceeding € 300, in some cases up to € 900 with a maximum term of 30 days.
I hope you now have a global vision of what online loans are, their characteristics and the types that exist today in the market. As a tip I would indicate that you have very much in mind the repayment terms as well as how quickly they can assist you and grant you a loan.