In almost all cases, the second alternative is recommended, namely the application for the installment loan via the bank’s website. It does not necessarily have to be a direct bank, because an increasing number of retail banks are now also offering text loans online as an alternative to borrowing from the office, which they can then apply for via the Internet.
The latest craze is so-called white-label solutions. There, a bank, a subsidiary looks after the entire application processing and processing. The site operator takes care of the marketing, i.e. the customers and thus saves the construction of costly own credit processes. It is a process that we will certainly see more often in the future. The main argument for the online application for personal loans are usually better conditions for example, you can compare conditions for loans. If you compare the interest rate with the loan interest rates that you would have to pay for the installment loan from the office for the online application that the entire processing of the application is usually faster and you can therefore also have the desired loan often relatively quickly.
In the overview, there are the following advantages in particular, which can distinguish a loan application that you can submit online via the bank’s website:
- Often cheaper rates
- Applying around the clock possible
- Often faster processing
- Much faster than the application in the office
Beware of credit inquiries
Most consumers assume that a loan will only be reported when a loan agreement has actually been concluded. Basically, this assumption is also correct, but it is often forgotten that already credit inquiries can lead to an entry. For some banks, it is the fact that not only completed loans are forwarded, but already credit inquiries that are made by potential customers. Although such a notification is not a problem in itself, it can be critical if you make more loan requests within a relatively short period of time. This could give the impression that you are only making multiple requests in a short time because the banks reject your loan requests. As a result, it is highly recommended that you submit a credit request only if it is not forwarded.
Taking out a personal loan: some requirements have to be fulfilled
Banks in our country are obliged to first check whether the applicant is at all suitable for taking out a personal loan. In addition to the creditworthiness, which can be fixed relatively quickly and easily on the basis of the age of majority of the applicant, it is important in the examination, that the bank is a picture of the creditworthiness of the customer. In this context, the three following points in particular play an important role when it comes to assessing the overall customer creditworthiness.
Asset management or collateral
First of all, each bank will want to know from you what your income will be if you apply for a personal loan. As a rule, proof of income must also be provided, which is possible primarily through a salary certificate, an employment contract or also current bookings of the salary in the current account. However, the amount of income alone is not enough to judge whether the proposed loan installment is sustainable. Therefore, some banks also require the preparation of a revenue and expenditure account, because this includes in addition to the revenue just as all expenses. Only on condition that a positive balance results with this income and expenditure calculation, is to consider the borrowing at all.