Above all, the quick and easy way of obtaining a loan without long processing times is the decisive criterion for many people when it comes to borrowing online. But how exactly does it work and how can consumers benefit from an online loan?
Extensive information options
Most consumers today already start looking for information on the Internet. The possibilities are great, in addition to the websites of banks and savings banks, finance and comparison portals in particular offer extensive opportunities to find out about loans. A classic consultation in a branch bank, on the other hand, takes place less and less. The most convenient way to borrow online is via a so-called credit platform.
Receipt of money after 24 hours
Most online loans fall under the instant loans category. With this type of loan, the entire process is carried out on the Internet and the decision to accept or reject the online loan application is usually made within a few hours. If the decision is positive, the money is often in the account within 24 hours. This is made possible by largely automated processes. But how does that work in detail?
- Compare loans
The offers from different loan providers can be compared quickly and easily on loan portals. After entering the desired loan amount and the loan term, the best offers are displayed.
- Choose provider
If a suitable offer has been found, the second step is to send further information to the provider. This usually includes information about the person and the financial situation as well as the bank details. Based on this information, the specific loan offer is offered.
In a third step, it is now necessary to legitimize yourself by means of a video identity process. To do this, the ID card must be held in a camera next to the face. If you want to avoid this procedure, you can alternatively obtain authorization from a post office. The so-called Post-Ident procedure, however, takes a few more days.
- to recieve money
If all information is correct and the legitimation was successful, the provider transfers the money to the specified recipient account.
What problems can arise?
If the applicant can prove a perfect credit rating, it is unlikely that an online loan will be rejected. But it can be, for example, that a negative Schufa entry leads to a refusal of credit. Many online providers also adhere to this type of credit check. Some online credit providers, on the other hand, use other evidence to assess creditworthiness. With such providers, it is quite possible to get a loan approved despite negative Schufa. For people who have received a Schufa entry through no fault of their own and are urgently dependent on a loan, such providers can benefit greatly.
In general, consumers have become more internet savvy in recent years when it comes to finance. This applies to areas such as paying with the smartphone, online banking via app or even taking out credit online. In view of the advancing digitization, further developments will certainly show up in the coming years, including the possible elimination of cash.